Transformations  in
Business & Economics

Social Factors and New Venture Decisions: The Analysis Based on the Study of Cognitive Factors
Nuria Gonzalez-Alvarez, Vanesa Solis-Rodriguez, Javier Guzman-Goyanes

ABSTRACT. The main goal of this study is to analyse the influence of social capital (the set of networks that influence individuals by interacting with them) and two cognitive characteristics in individuals (self-efficacy and fear of failure) on new venture decisions. A study was carried out on social capital and on cognitive factors with a view to drawing up a set of hypotheses allowing analysis of the relations between these concepts and the decision to set up a business initiative. The hypotheses were then tested on a sample of 28,888 individuals belonging to the Spanish working-age population drawn from the GEM 2009 report. The results indicate that, although both social and cognitive factors have a direct influence on new venture decisions, social factors also influence cognitive factors so that the latter act as mediating variables between social factors and the new venture decision.

KEYWORDS: social capital, cognitive factors, new venture decisions.

JEL classification: L26, M13, C83.