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Abstract
Globalization, industrialization and structural changes in traditional rural
employment patterns have caused rural communities such as the Israeli
Kibbutz to search for development strategies in order to survive. Self development
constitutes one possible approach to community development. It
nurtures local entrepreneurial activities and relies basically on local resources
in order to create new jobs and economic activities. These local
activities of entrepreneurship generate variety and leverage resources and
can therefore foster social capital development and contribute to the community's
capacity. Community development requires a mix of resources
including natural capital, produced economic capital, human capital and institutional
capital. Social capital is the glue that holds them together, a
network of social relations based upon norms of trust and reciprocity leading
to outcomes of mutual benefits. Thus, social capital reflects the ability
of community members to participate, cooperate, organize and interact.
Since many rural communities such as the kibbutz are undergoing processes
of crisis and change, innovative initiatives potentially promoting
economic independence of individuals and development of the community
are of major importance. Rather than assuming that entrepreneurship is
primarily the outcome of social capital, this study focuses upon the interdependency
of entrepreneurship and forms of capital required for community
development.