Determinants of development of entrepreneurship

The high social capital favours, as matter of fact, development of entrepreneurship, because it allows for more effective realisation of the aims of enterprises and achieving competitive advantage by them. Admittedly, economic growth itself is also possible with a comparatively low level of the social capital, however, in the long-term perspective the low level of the social capital works as a hampering factor. Also, factors affecting development of entrepreneurship do not subject to a quantitative formulation. In the past, the conclusion was formulated, on the basis of the general cultural differences among societies, that some societies are not capable of achieving intensive economic development in the conditions of the modern economy.