Social Capital and Strategy Effectiveness: an Empirical Study of Entrepreneurial Ventures in a Transition Economy

1 Submitted to the Second International Conference on Entrepreneurship in Transitional Times: Issues and Challenges. Moscow, 14–16 of November, 2012. enterprise (Hoskisson, Eden, Lau, & Wright, 2000). According to the 2011 Global Entrepreneurship Monitor report (Kelley, Singer, & Herrington, 2011), between 3.7% (in Slovenia) and 14.2% (in Slovakia) of the population aged 18–64 in these countries is currently involved in early or later-stage entrepreneurial activity. The contribution of the private sector to GDP (Gross domestic product) skyrocketed from as low as 5–10% in 1990 to over 60% (over 80% in most countries) in 2005 (Svejnar, 2006). Entrepreneurs add value to the economic growth and market transformation of transition economies by countervailing the loss of jobs I. Manev, University of Maine, Maine Business School, Orono, [email protected] T. Manolova, Bentley University, [email protected] B. Gyoshev, International Business School, Botevgrad, Bulgaria, [email protected] J. Harkins, University of Maine, Maine Business School, Orono, [email protected]