A Conceptual Model on Trust and Self-Discipline of the Entrepreneur: Preconditions for Capital Attraction and Business Success

Abstract

This conceptual paper explores the dynamics of trust and self-discipline as preconditions for the attraction of capital and success of businesses. Given the importance of trust to entrepreneurial success, it is imperative that this paper examines the factors that exactly triggers the formation, breaking and repair of trust in relation to the nature of different entrepreneurial activities. The finding from the systematic literature review shows that whereas trust may have negative implications for entrepreneurship, the positive influence is more probable and should be exploited by entrepreneurs for their success. Furthermore, the paper proposes that entrepreneurs could rely on trust and self-discipline not only as preconditions but equally as social capital, human capital and intangible assets to secure financial capital for their business ideas.  In addition, the recommendation is that future research on trust and entrepreneurship could empirically test the extent to which financial institutions may be willing to advance capital to businesses on the premise of trust and self-discipline.