Why Some Communities Foster More Entrepreneurs Than Others

The hard-charging entrepreneur has become something of a trope these days. From Steve Jobs to Mark Zuckerberg to Jack Dorsey, the image of the self-made man striking out on his own has become an updated, 21st century version of the old Horatio Alger myth.

But new research shows there's clearly more to the story than just individual skill, pluck, and ambition. The study, by Temple University’s Seok-Woo Kwon, the University of Missouri’s Colleen Heflin, and Duke University’s Martin Ruef, examines the relationship between self-employment levels and community support structures across America’s metro areas. Published in the December issue of the American Sociological Review, the authors argue that the strength of local social networks and trust — using the term “social capital,” popularized by Harvard sociologist Robert Putnam — plays a major role in whether a city is able to foster a culture of self-employment and entrepreneurship.