Why some cities are better for entrepreneurship than others

How does social trust or capital foster entrepeneurship? This article makes a compelling argument for how the strength of local social networks and trust can help create an environment where business innovation and creation can grow,

 

 

"This makes intuitive sense. Venturing out on your own is a risky proposition, and one that takes a huge amount of effort and ingenuity to build a business — even if it’s just you — from the bottom up. That’s why certain personalities are thought of as more “entrepreneurial” than others. But, as the authors note, there’s a snowballing effect as well, as more diverse and widespread social networks bring everyone, regardless of their own connectivity, into contact with far more people. These effects can spread beyond the very local level, and metros with more engaged citizens provide the right context for self-employed workers to make it.

 

Community is clearly key to creating an atmosphere where risk-taking is, in essence, less risky. But a couple of caveats, which the authors note themselves, should give us at least slight pause."

 

Read the rest here.