Relationships among social capital, self-efficacy, and new venture creations

The purpose of this paper is to examine the relationship of social capital with new venture creation, and whether self-efficacy plays a role in mediating the association between social capital and new venture creation.

Data were collected from 375 entrepreneurs through cross-sectional survey in India. The study used partial least square path modeling to assess the relationships among the variables.

Findings reveal that social capital is positively related to new venture creation. The association of social capital and new venture creation is fully mediated by entrepreneurs’ self-efficacy.

The role of social capital in the success of new venture creations through self-efficacy is useful to the potential entrepreneurs and people who facilitate new venture creation in Indian context.