Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil

Siqueira, Ana Cristina O.; Mariano, Sandra Regina Holanda; Moraes, Joysi; Cox, Larry W.

doi:10.1504/ijbg.2015.066097

Cited by 2 publications

(2 citation statements)

References 28 publications

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“…In fact, recent studies from different countries (e.g. Nyoni, 2012;Williams & Youssef, 2013;Chavdarova, 2014;Siqueira, Mariano, Moraes, & Cox, 2014) provide evidence that interpersonal trust is a facilitator of informal entrepreneurial activities. Therefore, interpersonal trust is expected to encourage entrepreneurship in both formal and informal sectors.…”

Section: Hypothesis 2a: Networking Is Positively Associated With Creamentioning

confidence: 99%

The impact of national social capital on business creation rates in the formal vs informal sectors

Thai

Turkina

Simba

2020

IJEBR

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PurposeThrough utilizing social capital as an overarching concept, the purpose of this article is to investigate cross-country rates of business formation in the formal vs informal sectors. Plus, empirically assess the impact of social capital constructs on the national rates of entrepreneurship.Design/methodology/approachAdopting a regression-oriented methodology, partial least squares (PLS), the study used a sample comprising 50 nations. National rates of registered and nonregistered business creation were utilized as endogenous variables. To determine the indigenous variables, constructs of social capital were measured which is consistent with the World Value Survey (WWS).FindingsThe results of this study show that in the formal and the informal sectors, social networking enables business creation with varying levels of impact. It establishes that institutional trust has a negative effect on informal business creation and a positive effect on business registration; interpersonal trust drives entrepreneurship in the informal sector but has less impact on business registration; norms of trustworthiness are related to business registration than informal business creation.Practical implicationsThe findings of this research have theoretical and practical implications. They stimulate academic debate on the application of social capital constructs at the national level. The indications that social capital promotes business formation in both the informal and formal sectors can influence entrepreneurship policy development in many countries.Originality/valueThe originality of the results of this study lies in how it conceptualizes social capital as having direct impact on business creation in the informal vs formal sector. Thus, the findings elevated the conceptualization of social capital to the national level thereby enhancing knowledge on the entrepreneurship process as well as developmental economics.

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Section: Hypothesis 2a: Networking Is Positively Associated With Creamentioning

confidence: 99%

The impact of national social capital on business creation rates in the formal vs informal sectors

Thai

Turkina

Simba

2020

IJEBR

View full text Add to dashboard Cite

show abstract

“…Due to a lack of formal training, the failure rates of micro-enterprises can be significantly higher. However, the failure rates of these enterprises are often concealed in the high repayment rates associated with MFIs (Siqueira et al, 2015). When their enterprises fail, borrowers are in jeopardy of defaulting on their loans and, regrettably, it appears that MFIs continue to seek repayment regardless if a micro-enterprise fails or succeeds.…”

Section: Social Entrepreneurship Through Micro-financingmentioning

confidence: 99%

Combating rural poverty through altruism: a model for sustainable education

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2017

WREMSD

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Nepal, one of the poorest nations, is plagued with high illiteracy rates and child labour. The children that enter the workforce, namely from rural areas, experience inhumane conditions and many enter the human trafficking trade. With a reach of over 100 million people and 68% of beneficiaries crossing the poverty line, micro-financing has proven to be an effective tool at addressing rural poverty. However, there are disadvantages hidden in these statistics, namely usurious interest rates, high enterprise failure rates, and aggressive repayment schemes that cannot only perpetuate impoverished conditions, but can also contribute to them. To address the disadvantages of micro-financing, a model for sustainable education is developed in this paper using altruism theory and the banking monetary multiplier. Through this model: 1) the cycle of poverty can be reduced; 2) literacy rates can be increased; 3) the supply of children that are trafficked abroad can be minimised.

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Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil

Cited by 2 publications

References 28 publications

The impact of national social capital on business creation rates in the formal vs informal sectors

The impact of national social capital on business creation rates in the formal vs informal sectors

Combating rural poverty through altruism: a model for sustainable education

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