The Development of Social Capital during the Process of Starting an Agritourism Business

Abstract

The role of social capital in the early phases of development of a family business is well documented, but the dynamism of the entrepreneur’s social capital in the agritourism business remains a relatively lesser-studied area. The current research, on an inductive, exploratory, and qualitative basis, aims to uncover the place and role of social capital in the establishment of agritourism enterprise, from concept formation to stabilization. The results of the study highlight the importance of governmental help in finance and networking for launching an enterprise, especially in remote areas where these additional activities are relatively lesser-known. The role of a network is relatively weak in the risk analysis of the business. This fact enhances the vulnerability of enterprises.