Social capital and entrepreneurial intention among Indonesia rural community

Abstract

Despite the escalated interest in entrepreneurship, scholars have underexamined the role of social capital in determining entrepreneurial intention. This research attempts to examine how social capital matters in enhancing the intention of becoming an entrepreneur in the rural community. The method adopted in this work was a quantitative research approach using a survey model. The respondents of this survey were collected from the rural community in a selected area in Indonesia. Furthermore, to test the relationship between variables, we used Structural Equation Modeling Partial Least Squares (SEM-PLS) to regress the data. The findings of the study confirm that social capital has robustly influenced the intention of being an entrepreneur. However, the perceived desirability of entrepreneurship failed to mediate the linkage between social capital and entrepreneurial intention. The findings have several implications for the government in developing economic growth and entrepreneurship in the local community.