Social capital and tourism entrepreneurship

This research applies the concept of social capital to help generate an understanding of tourism business development in Guangxi, China. An overall, robust effect of individual social capital on entrepreneurship in tourism is found, even though the effect varies across different dimensions of the social capital concept. Specifically, structural social capital is positively related to both an individual’s ability to enterprise and the individual’s probability of establishing a tourism business. Relational social capital contributes to the ability to enterprise, but does not demonstrate any significant impact on the probability of start-up. Cognitive social capital is marginal in both cases. Important implications are drawn for tourism business development, especially in rural and/or developing areas.

► Social capital influences individuals’ decision to start up a tourism business.
► The effect of social capital varies across different dimensions of the concept.
► Human capital is the most significant predictor of entrepreneurship in tourism.