The Contribution of Social Capital to Entrepreneurial Activities’ Success: Across-Country Field Study in the Light of Social Capital Theory

The present study aims to examine the role of social capital dimensions (i.e., social relationships, information possession, supplementary capitals, and social obligations) in entrepreneurial activity success. The study used a questionnaire form and the snowball sampling technique to collect data from youth entrepreneurs from three Arab countries. In total, 186 youth entrepreneurs of the UAE, 120 from Egypt, and 107 from Oman and across services (i.e., tourism and hospitality sector), commercial, manufacturing, agricultural, and other sectors. Structural equation modelling was used for data analysis. Findings revealed that social capital dimensions positively and significantly contribute to youth entrepreneurial activities across the three research settings (i.e., UAE, Egypt, and Oman). Theoretically, this research uses social capital theory to quantify measures of social capital and examine its contribution to successful entrepreneurship. Few studies have examined entrepreneurial youth activities and their relationship with social capital dimensions. There is a lack of empirical research on entrepreneurship from a social capital perspective. In practice, it provides guidelines for the entrepreneurship responsible authorities in developing countries that encourage young people to start entrepreneurial activities. It provides youth with relevant training to equip them to build and leverage social capital to support their businesses.