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Social Capital as a Factor of Business Growth

Student: Alena Zhuravleva

Supervisor: Anastasiia Vyacheslavovna Rassadovskaia

Faculty: Faculty of Economics

Educational Programme: Economics (Bachelor)

Year of Graduation: 2017

This graduate work is devoted to the study of social capital and its correlation with business development. The study conducted a cross-country analysis of entrepreneurial birth and death rates. The theoretical aspects of social capital and entrepreneurship and the importance of its development as one of the indicators of economic growth were also considered. An empirical analysis was conducted to identify the relationship between business development indicators and social capital indicators in the world, based on data from 102 countries. As a result, it was revealed that not all indicators of social capital have an impact on the business development. Assumptions about the permanent relationship of social capital with certain indicators of business development were not fully justified. This study proves that the development of social capital is vital at the moment, as there are both theoretical and empirical evidence of the existing relationship.

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