A Cross-National Study of Entrepreneurial Intent: The Effect of Social Trust and Trust in Government

This multilevel, cross-national study examines the influence of social trust and trust in government on latent entrepreneurs’ intention to start a business. Building upon theory of institutional hierarchy and social relations, this research shows the negative impact of fear of business failure on entrepreneurial intention varies across countries. Results find such negative relationship is weaker in countries with higher levels of social trust and trust in government. In other words, in a trusting environment, a sense of uncertainty and lack of control of startup issues may be mitigated by conflict compromise and efficient exchange of information among agents.