Work

Trust in a ‘Post-Socialist Region’

Year: 2004

Type: article

Abstract: As trust is essential for close mutual cooperation, trust between entrepreneurs running SMEs (small and medium-sized enterprises) has been increasingly acknowledged as an important factor in regional economic development. However, one of the main problems of post-socialist economies is that the increased need for entrepreneurial trust is thwarted by conditions discouraging the creation of trust. In order to investigate this problem, an empirical study was carried out among ICT entrepreneurs in eastern Germany to examine the main aspects of trust identified in the recent literature on SMEs and entrepreneurship. The findings revealed that although barriers impeding the emergence of inter-entrepreneurial trust do not necessarily exist in a lagging, transforming region such as eastern Germany, its development may prove more difficult than elsewhere. Problems can be attributed to ‘legacies of socialism’ in the knowledge patterns of ‘post-socialist entrepreneurs’ and, more importantly, their perception of a general lack of market power. However, actual problems of building entrepreneurial trust can usually be resolved by careful reflection on the part of those concerned.

Source: European Urban and Regional Studies

DOI: 10.1177/0969776405046263

Author: Henning Nuissl

Institution: Helmholtz Centre for Environmental Research

Language: English

Topic: Entrepreneurship Studies and Influences

Subfield: Management of Technology and Innovation

Field: Business, Management and Accounting

Domain: Social Sciences

SDGs: Decent work and economic growth, Industry, innovation and infrastructure

Open Access status: green

Funders: University of Essex, Deutsche Forschungsgemeinschaft