The role of bonding and bridging cognitive social capital in shaping entrepreneurial intention in transition economies

Abstract

Entrepreneurship is an important factor of potential growth and development that will determine the development dynamics of transition countries in the future. Starting from the theory of planned behaviour and the social cognition theory, the paper argues that bonding and bridging cognitive social capital may positively influence entrepreneurial intentions of young people in Croatia and Macedonia. The hypotheses were tested by using structural equation modelling. Our findings indicate that bridging and bonding social capital could be significant enhancers of entrepreneurial intention. The fact that those individuals who have poor bonding social capital may get their chance through bridging social capital seems as a good indicator. Bridging social capital that forms in an entrepreneurial environment can encourage young people in their self-employment efforts. Furthermore, our research implies several possible measures of enhancing the efficiency of entrepreneurial education.

Keywords

• Entrepreneurial intention
• Cognitive social capital
• Theory of planned behaviour
• Republic of Croatia
• FYR of Macedonia