Social Capital Versus Cultural Capital Determinants of Entrepreneurship: An Empirical Study of the African Continent

Abstract

Entrepreneurship literature has examined the effects of social capital and cultural capital on entrepreneurial outcomes. However, the articulation of these concepts has not been clearly resolved. We employ a unique dataset of entrepreneurs from 51 African countries, introducing the level of slave trade as both a measurement of mistrust and a proxy for social capital. We use majority religion as a proxy for cultural capital. We found that social capital has a significantly positive impact on entrepreneurship only through its moderating effect on cultural capital. Results have significant policy implications for the articulation of social and cultural capital.