Entrepreneurship of small & medium business in industrial cluster of Zhejiang Province: A sociological perspective of social capital

This paper aims to explain the role of local context in the development of start-ups' social networks, according to a sociological perspective of entrepreneurship, which considers social capital as a main factor of success for the growth of young firms. This research problem is dealt with in connection with the more consolidated theoretical studies of clustering phenomena in Zhejiang Province, which have attributed to social networks a central role in explaining the concentration of the entrepreneurial process in restricted geographical areas. The results of our analysis show that a strong incidence of the local factor can help start-ups. A strong impact of local context, in fact, has a positive influence on the industrial cluster in Zhejaing Province which brings the immediate advantage to reduce the costs of control and to develop trust in the business relations.