Research Journal of Recent Sciences _________________________________________________ ISSN 2277-2502 Vol. 3(4), 112-120, April (2014) Res.J.Recent Sci. International Science Congress Association 112 Interactive Relationship between the Dimensions of Social Capital and Entrepreneurial Orientation with Respect to the Characteristics Approach (Case Study: City of Tabriz, Iran)Yashar Atazadeh, Saideh haydariyan ghahfarkhi, kazem Rezaei, Maryam KarimiYoung Researchers and Elite Club, Pars Abad Branch, Islamic Azad University, Pars Abad, IRAN Department of Management, East Azarbaijan Science and Research Branch, Islamic Azad University, Tabriz, IRAN Available online at: www.isca.in , www.isca.me Received 24th July 2013, revised 2nd September 2013, accepted 8th October 2013Abstract The present study examined the relationship between social capital and entrepreneurialism according to the approach of characteristics. The study sample consisted of residents of Tabriz (Iran). The population considered by morgan and more reliable, with 400 participants were recruited to the study. The data collection method is field studies and library research. In order to collect data from field studies of social capital and entrepreneurship questionnaire was used. The face validity of the questionnaire was reliability was calculated by Cronbach's alpha for the social capital questionnaire and 0.83 and 0.93 were reached. To test the research hypotheses of this study, multiple Regression and Pearson's correlation coefficient was used. Data were analyzed by 18 SPSS software. The results showed: significant positive relationship between entrepreneurship and social capital, there is a range of trust, cooperation, participation have a significant impact on entrepreneurship. There is a significant positive relationship between the influence of emotion and personality characteristics related to entrepreneurship such as risk taking, internal locus of control and pragmatism. This means that the effect of reinforcing a sense of personality characteristics related to entrepreneurship such as risk, internal control and pragmatism pragmatism will also increase. Keywords: Entrepreneurship, social capital, creativity, trust, cooperation, a sense of efficacy. Introduction Today a new concept of social capital in sociology, economics and management, and the organization has recently been widely used. Links to this concept, the communication between network members as a valuable resource refers to the creation of mutual trust in the norms and goals of the members. The capital now plays a very important role in physical and human capital in organizations and communities, and networks of relationships, collaborative and team cohesion among the people, by the people, organizations and agencies of the organization. Knowledge comes from humans and technology is only a means of sharing knowledge not creating it. Unlike physical capital, knowledge capital which is used increases in value and lack of duplication and dissemination of knowledge results in repeated use of solutions for problem solving. The definition of capital asset wealth is said to be productive, or source of income that can generate an obtaining additional resources applied to it. The supply of monetary and non-monetary forms may also take tangible and intangible forms. From the viewpoint of Bordieu, capital is any source of influence and that allows a special interest in the partnership that won the race. On the other hand, he defines capital as the accumulation of human capital by individuals or groups to profit exclusively dedicated to promoting the benefits of increased wealth and property. Different forms of capital are: i. Economic capital to earn money as well as resources and other financial assets that can be internalized and manifested his property rights. Convertibility of economic capital is very high and can easily be converted to other assets. ii. Cultural capital: there are different forms of this capital. It includes tendencies of the socialization process and the accumulation of valuable cultural objects such as paintings and formal education qualifications achieved. Changing cultural capital to social capital is an easy task. But changing social capital into cultural capital is a difficult task. Symbolic capital: the type of investment that uses symbols to legitimize the seizure of varying levels and types of capital used. iii. Social capital: social capital as an independent variable is present, it will continue to be scrutinized. Table-1 Forms of capital and its referencesCapital formation The main distinction The most common References EconomicCommercial success versus failuremoneyEconomic status SocialRegistered vs. Non-Registeredsocial relationship Register CulturalIdentifying vs. distrustprestigeReputation and knowledge Symbolicart versus non-artLegitimacyhierarchy Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 113 Social capital is a collection of potential and actual sources which comes into existence by subscribing to social networks and organizations. Social capital is a Set of norms, and networks within the organization. This causes its members to promote cooperation and reduce costs in exchanges, and communication. In Pantam’s perspective, social capital is defined as "social networks and the norms of reciprocity and trustworthiness that arise from these networks to be". Social capital in a general sense to invest in social relations with expected returns is defined markets. From Woolcock’s perspective10, social capital can be used as a common theoretical language of the historian, political scientists, anthropologists, economists, sociologists and policy makers can work together in a constructive and beneficial manner. Social capital can be split into three levels of micro, intermediate and classified. On a large scale, it includes Institutions such as government, judicial, political and civil liberties, etc. And on a micro and intermediate scale includes Networks and norms that refer to the interactions between individuals, families and communities. However, such networks are often (but not necessarily) the establishment of associations or local institutions11. Generally, social capital has two components: i. Explicit links between individuals: a network structure objectively confirms the connection between people. This suggests that social capital is a part of people's social environment linked12. ii. Mental ties between persons: linkages between individuals characterized by mutual trust based on positive emotions may have, so we can say that trusting and bonding social capital has two components. Both qualitative and quantitative aspects of social capital are expressed13. In addition, social capital can be divided into two types: A: Linking social capital: social capital characteristic of this type, there are strong ties between family members as a group. This type of investment can be considered as social capital within the group. B: Connecting social capital: In this type, the strong links between social categories, hence it can be considered social capital among groups12. Sometimes the phenomenon of social capital in a community, and the opposite effects of both positive and negative effects can be studied. For example, strong social networks create social capital in the career advancement of workers is effective. And especially through access to information workers can reduce social tension. It is thus prevented9,13. The second issue of this paper is to discuss the jobs associated with it. Entrepreneur of the issues that some pundits are rooted in small firms and the private sector, but with the development of large organizations, researchers and managers are attracted to it14. Because the phenomenon of entrepreneurship, organizational dynamics with an agent that can provide new ways and will bring acomparative advantage. Also Lack of adaptability of the public sector and reduces the efficiency of government systems and managers make use of management skills in the private sector. Another pragmatic approach to reinventing government movement in the public sector seeking a fundamental transformation in the public sector to establish administrative processes and service15. We spend less money, more work to do. Our slogan is a set of recommendations and guidelines aimed at solving problems in government. Osbourne and Ted introduce their approach as an alternative paradigm to traditional government management and they have named it as the entrepreneur government. Entrepreneur of the government agencies funding the program, to encourage government employees to encourage them to spend funds. In contrast, the entrepreneur are looking to earn money and gain benefits. In this case, public managers have the ability to become entrepreneurs. For government agencies to earn income16. Entrepreneurship is closely linked with economic development. Due to the special role of entrepreneurs in economic growth and development, many governments in developing countries are leading the effort with maximum utilization of facilities and research achievements, a number of people whose entrepreneurial characteristics can lead to entrepreneurial education and entrepreneurial activities17. In the discussion of entrepreneurship each scholar has encountered in his field of entrepreneurship with entrepreneurs and entrepreneurial issues. Economists have considered functional definitions of economics growth and profitability and Sociologists have considered the entrepreneurial environment; Psychologists have considered psychological characteristics, and have reached the conclusion that No doubt certain entrepreneurial activities are followed in accordance with their specific demographic and psychological characteristics17. To differentiate entrepreneurs from non-entrepreneurs, several features have been identified. Psychologists have noted that the first batch of these variables, personality variables and the psychological approach, are called attributes. Some of the major features that have been considered in this approach include positive mental states, risk-taking, creativity and innovation orientation of the spirit, invincibility, internal locus of control and need for autonomy18. Needfor seeking luck or success: is the tendency to have higher standards for success in a competitive position19. Willingness to take risks, and Danger: Entrepreneurs are people who are moderate riskers. The activity is not necessary for them to be high risk. The average amount of risk that you are willing to start a business as usual are willing to take moderate risks for the money, security, and reputation. They are not dangerous and unreasonable risk takers. In a risky situation they act with care and deliberation. And apply all their efforts to change the odds to win13. Propensity to innovation: creativity is the unique ability to combine ideas in an unusual way and the innovation of the process of making use of an inventive idea to change it into a product or service. In other words, creativity is the ability to focus, not the activity itself. The illusion of creativity, innovation, entrepreneurship components are inseparable. According to Peter Drucker innovation is so essential to entrepreneurship that it could be argued that there is no entrepreneurship and innovation without creativity is not worth much20. The need for independence: the need for autonomy is what psychologists call the internal domineering. In summary, in view of the successful entrepreneur with his employer (which may be a large company) which plays the role of the father, the opposition and the struggle goes on. Creating a corporation represents a motherly role on his part that saves the Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 114 entrepreneurial spirit of the employees from the threatening authoritarian father21. Control center: weather the person believes that he is controlled by external events or internal, is called control center. Most entrepreneurs have an internal locus of control do not attribute their success and failure to luck or fate, or similar forces. Setbacks and advances are in their own control and count themselves responsible for their actions. Ambiguity tolerance: accepting uncertaninty as part of life surviving on an incomplete knowledge about the environment and the tendency to start an independent activity without certain prospects. Entrepreneurs are able to face vague, incomplete, uncertain and unorganized information more effectively without feeling threatened or uncomfortable with the situation22. In this paper, the importance of social capital and entrepreneurship and its impact on society is explored. The approach to the study of the relationship between entrepreneurial characteristics is not an organizational perspective, but a social perspective investigating the population of Tabriz. Review of literature: McClelland with his investigation concluded that the need to succeed among the people who start their own businesses is high. These people are inclined towards challenges and In pursuit of these objectives, and availability of their performance when they need frequent and regular feedback. They prefer their responsibility to solve problems, set goals and achieve them through their personal efforts23. Research done by Taslimi24 as an organization was to examine the relationship between social capital and entrepreneurship. The aim of this study was to examine the relationship between corporate entrepreneurship and social capital in an industrial company. Director of the Company had a population of 151. Results: Among the structural and cognitive dimensions of social capital and entrepreneurship during the enterprise, there is a positive relationship between entrepreneurial social capital. Research in 2009 by Kamran and Ershadi as the relationship between social capital and mental health network was carried out25. The purpose of this study was to investigate the effects of social network as social capital to be named on mental health (somatic, anxiety, functioning, and depression).The population of staff of education of Sari was chosen as the case study. Results: with the increase of functionality in the social capital dimension, mental health is also increasing. Social capital and mental health of older workers and married couples are more. Emotional support of women and men with more masculine types of support, including financial, operational and information providing. Also how individuals' perceptions and attitudes about the network has an effect on their mental health. Research in 2012 by Heidaripour et al a study of the relationship between social capital and economic development: inter-country analysis was performed26. The paper uses the data gathered from 164 countries with indicators on the percentage of employed women in ministerial level and the percentage of seats occupied by women in the parliament as Indicators of social capital Capita data GDP as Indicators of Economic Development and by using Pearson correlation analysis, the study examines the relationship between social capital and economic development. he result of the analysis of the relationship between GDP with the indices of the employment of women in ministerial levels in advanced countries shows that only in advanced countries there is a significant relationship between economic growth and social capital. A research carried out by Emami, Darabi and Sedi-Ahmadi27 exploring the relationship between social capital and organizational entrepreneurship was done in the city of Kermanshah. The purpose of this research is to investigate the relationship between social enterprise and entrepreneurship within an organization affiliated to the Ministry of economic Affairs and Finance is in Kermanshah. The population was 197 employees of the organizations mentioned. The results show direct and positive relationship between social capital and entrepreneurship, meaning with the increase of social capital, the desire for entrepreneurship also increases. Ghanimat, Pashai, Koopahi and Behnia in 2012 carried out a research on the the impact of demographic characteristics on entrepreneurship (Case Study: Islamic Azad University of Tabriz)28. The purpose of this study was to investigate the influence of demographic characteristics such as age, education, type of school and gender on entrepreneurship, Islamic Azad University, Tabriz (Iran). The students of the Islamic Azad university of Tabriz from among whom 400 were selected as samples. Means of data collection: a questionnaire has been developed by the researchers. Statistical methods used in this study is to test T-test. This study was comprised of four hypotheses. The results indicated that the demographic characteristics considered only variables of entrepreneurial students, faculty and degree of impact. Material and Methods The present study is applicative in terms of it goals and the method of data collection is descriptive survey29. The tools of data collection: i. Library studies. ii. Field research: in this area in order to collect and analyze data, questionnaires of social capital and entrepreneurship were used. Finding answers and solutions for a problem at hand requires collecting data which can be used to test hypotheses. For data collection, there are several ways and often for obtaining information on a study, more than one method is used30. In this study, a questionnaire was used to collect data31. One of the common tools is a questionnaire survey to obtain data directly32. A questionnaire is a series of questions (items) that respondents answer carefully33. The answer provides the data needed for the research34. In this study, a questionnaire to measure entrepreneurial characteristics and entrepreneurial approach to social capital questionnaire was used. The reliability of the questionnaire: The instrument's ability to maintain its stability over time. Despite uncontrollable testing conditions and status of respondents indicates stability and low variability33. This indicates the finesse of the measuring tool, because every time the results are consistent35. In this research in order to calculate the validity of the questionnaire Cronbach's alpha is used and to test it before the final application, some people are randomly selected from the sample, then they will be provided with questionnaires and the Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 115 results will be calculated using the SSPS software. The validity of the questionnaire: the Capability of the questionnaire in measuring the traits it is meant to, and it consists of Face validity ‘Predictive Validity’ Content validity, etc36. What is meant from validity is that the measurements can be used to measure the wanted attributes and characteristics37. In this study, the content validity of the questionnaire was confirmed. The population consists of a collection of individuals, objects and that are at least they are in a common industry. The population studied here is the city of Tabriz (Iran). A sample is a set of signs that is a part of a larger group or community that are selected so that the set of qualities and characteristics that define the group or community is representative33. In this study, a sample of 400 participants was recruited using the Morgan table. Random sampling method is for selecting a part or the whole of society38. In this study, random sampling is used. Methods of Data Analysis: Descriptive statistics: a collection of methods that are used for organizing, summarizing and describing observations is called descriptive statistics. In the descriptive analysis, the researcher by comparing different phenomena, describes them in terms of statistics, and gives valuable information about the nature of the study. The statistical indicators used are the descriptive statistical indicators31. The data described in this paper indexes will be divided into three categories, which include: i. Central indicators like mode, the mean and median ii. Scattering parameters such as range, variance and standard deviation and iii. Index distribution such as skewness and elongation index. The table 1 shows the respondents' age requirements. According to the table, from among 400 respondents, 73 are under 20 years old, 97 are between 20 and 25, 119 are between 25 and 30, 68 are between 30 and 35, 30 are between 35 and 40, 10 are between 40 and 45, and 3 are over 45. Figure-1 Concept model Table-1 Age Frequency Percent Valid Percent Cumulative Percent Valid Under 20 73 18.3 18.3 18.3 20-25 97 24.3 24.3 42.5 25-30 119 29.8 29.8 72.3 30-35 68 17.0 17.0 89.3 35-40 30 7.5 7.5 96.8 40-45 10 2.5 2.5 99.3 Over 45 3 .8 .8 100.0 Total 400 100.0 100.0 Work Relations Cooperation Partnership Social Integrity Feeling of Influence Volunteer Work Seeking Success and Goal Oriented Independence Creativity and Intellectual Clearness Risk and Invincible Spirit Internal Locus of Control Pragmatism Ambiguity Tolerance Trust Social Capital Entrepreneurship Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 116 The table 2 shows the educational status of the respondents. According to the table, from among 400 respondents, 78 are without high school diplomas, 53 have high school diplomas, 73 have associate degrees, 111 have bachelor’s degrees, 81 have master’s degrees, and 4 are either PhD or PhD students. The table 3 shows the marital status of the respondents. According to the above table it can be said that among the 400 respondents, 294 are unmarried and 106 married. The table 4 shows the gender status of the respondents. According to the table above, we can say that among the 400 respondents, 179 are women and 221 are men. Results and Discussion Inferential statistics: in this type of statistics, the researcher uses sample values to calculate the statistics, then with the help of estimation and testing the statistics, the parameters can be generalized. General discussion of statistical inference is called inferential statistics35. Values obtained in this study to test the hypothesis that the sample and inferential statistical techniques required will be provided. In this study, Pearson correlation and multiple regression was used. The first hypothesis: H = = 0, H = 0 To study the correlation between the two variables of social capital and entrepreneurship, we use the Pearson correlation coefficient. In the following table the significant level of correlation between entrepreneurship and social capital is shown. According to the following table we can say that the significance of the test is 0.000 which is less than 0.05. So we can say that the H1 hypothesis can be accepted with 95% confidence. Since the correlation coefficient is 0.453**we can say that they have a positive relation, meaning with the increase of social capital, entrepreneurship will increase as well. (This hypothesis is accepted with 99% confidence). Table-2 Education Frequency Percent Valid Percent Cumulative Percent Valid Without high school diploma 78 19.5 19.5 19.5 High school graduate 53 13.3 13.3 32.8 Associate degree 73 18.3 18.3 51.0 Bachelor’s degree 111 27.8 27.8 78.8 Master’s degree 81 20.3 20.3 99.0 PhD(or PhD student) 4 1.0 1.0 100.0 Total 400 100.0 100.0 Table-3 Marital Status Frequency Percent Valid Percent Cumulative Percent Valid Single 294 73.5 73.5 73.5 Married 106 26.5 26.5 100.0 Total 400 100.0 100.0 Table-4 Gender Frequency Percent Valid Percent Cumulative Percent Valid Female 179 44.8 44.8 44.8 Male 221 55.3 55.3 100.0 Total 400 100.0 100.0 Table-5 Correlations Entrepreneurship Social Capital Entrepreneurship Pearson Correlation 1 .453 ** Sig.(2-tailed) .000 N 400 400 Social Capital Pearson Correlation .453 ** 1 Sig. (2-tailed) .000 N 400 400 **. Correlation is significant at the 0.01 level (2-tailed). Second hypothesis: The dimensions of social capital has an effect on entrepreneurship. Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 117 As shown in table 6 test the first hypothesis, variables, volunteerism, sense of efficacy, social cohesion, participation, collaboration, communication, business, and trust as independent variable and entrepreneurism as the dependent variable were used as models. The results have three outputs. In table 7 the multiple correlation coefficient, coefficient of determination, adjusted coefficient of determination and standard error estimates are presented. As can be seen in table 2, the coefficient is equal to 0.256. Table 8 is the analysis of variance. As can be observed significance level equal to 0.000 is obtained. Since the significance level obtained is smaller than 0.05, it indicates that the model is able to explain the variation in the dependent variable. In table 9 the coefficients and the significance of each is presented. In the above table, the level of the significance of the coefficient of regression and the constant is less than 0.05. The hypothesis of equality of regression coefficients and constant equaling zero is thus rejected. According to the significance reached in table 9, we can say that the significance level for the variables of trust, cooperation, participation, and also the feeling of influence have a significant effect on entrepreneurship. Also according to the values in column B, the feeling of influence has the greatest impact on entrepreneurship. Because for one unit of change in the variable of feeling of impact, 4.707 per unit change takes place in entrepreneurship. The overall regression equation is as follows: Third hypothesis: Between the feeling of impact and risk, internal control and pragmatism, there is a significant positive relationship. Table-6 Variables Entered/Removed Model Variables Entered Variables Removed Method Dimension0 1 volunteer work, feeing of influence, social integrity, contribution, cooperation, work relations, trust . Enter a. All requested variables entered. b. Dependent Variable: Entrepreneurship Table-7 Model summary Model R R Square Adjusted R Square Std. Error of the Estimate Dimension0 1 .506 a .256 .242 9.623 a. Predictors: (Constant), volunteer work, feeing of influence, social integrity, partnership, cooperation, work relations, trust Table-8 ANOVA Model Sum of Squares df Mean Square F Sig. 1 Regression 12471.260 7 1781.609 19.240 .000 a Residual 36298.517 392 92.598 Total 48769.777 399 a. Predictors: (Constant), volunteer work, feeing of influence, social integrity, partnership, cooperation, work relations, trust b. Dependent Variable: Entrepreneurship Table-9 Coefficients Model Unstandardized Coefficients Standardized Coefficients t Sig. B Std. Error Beta 1 (Constant) 80.038 5.489 14.582 .000 Trust .785 .167 .229 4.707 .000 Cooperation .714 .203 .171 3.526 .000 partnership .599 .151 .181 3.973 .000 Social integrity .216 .187 .052 1.151 .251 Work relations -.031 .227 -.007 -.138 .891 Feeling of influence 1.092 .214 .228 5.111 .000 Volunteer work .170 .201 .039 .845 .399 a. Dependent Variable: Entrepreneurship Research Journal of Recent Sciences ______________________________________________________________ ISSN 2277-2502Vol. 3(4), 112-120, April (2014) Res. J. Recent Sci. International Science Congress Association 118 Table-10 Correlations risk center action Feeling of influence Pearson Correlation .229 ** .379 ** .195 ** Sig. (2-tailed) .000 .000 .000 N 400 400 400 To investigate the relationship between social capital and entrepreneurship, we use the Pearson correlation coefficient. The above table shows the significant level of correlation between entrepreneurship and social capital. According to the table we can say the significance of the test equals 0.000 which is less than 0.05 so we can say that the H1 hypothesis can be accepted with 95% confidence since the correlation coefficient is positive and equal to 0.453** This means that with increase of the feeling of influence the levels of personality traits ascribed to entrepreneurship such as risk-taking Internal locus of control and pragmatism will increase (this hypothesis will be accepted with 99% confidence). Conclusion Nowadays bearing in mind the economic status of the country and also the move from traditional public administration to new public management one of the requirements and processes at the community level is important to institutionalize the entrepreneurial process. To this end, identifying variables influencing the process, accelerates the process of establishing entrepreneurship. Therefore in this paper the first hypothesis investigated the relationship between social capital and entrepreneurship. And the result was that social capital has a positive relationship with entrepreneurship. This means that increasing social capital at the community level can increase entrepreneurship. So, from among the seven dimensions considered here according to hypothesis tests performed in the second hypothesis, the conclusion was that trust, partnership, cooperation and sense of efficacy, have a significant effect on entrepreneurship, and from among these dimension, the feeling of influence has the most impact on entrepreneurship. Since in this paper features of the approach were used to detect entrepreneurialism therefore, in order to identify the relationship between the Personality Trait of the feeling of influence, a third hypothesis was also raised. The purpose of the hypothesis was to find out about the relationship between personality traits and the feeling of influence and they direct impact on each other or inverse effect on each other. The third hypothesis tested in this study, concluded that out of the seven character traits considered, such as: Success, ambition, creativity, independence, risk-taking, internal locus of control, tolerance for ambiguity and pragmatism only character risk, internal control and pragmatism have a direct impact on the feeling of influence. And this indicates that after the feeling of influence increases, entrepreneurial characteristics such as risk, internal control and pragmatism will be strengthened. According to the results of this study, the following recommendations are in line with results obtained in Tabriz: In order to strengthen the trust it is proposed in order to increase the level of entrepreneurship: Establish trust with the people who are supposed to communicate with us in a process of entrepreneurship and with people or companies that in the future of your business process can interact with you to create mutual trust. In order to strengthen cooperation in order to increase the level of entrepreneurship it is recommended that: a person willing to undertake entrepreneurial activities in the future should try to cooperate with other companies in solving their problems. And should believe that by working with others we can solve community problems and should transfer this feeling to others, and should help other personnel in other agencies to help solve problems in work and their corporate activities. 3. In order to strengthen the entrepreneurial community it is proposed in order to increase participation: Participate in recreational activities with friends; Actively participate in various ceremonies and festivals, and have them participate in the launching them.(In the past, the entrepreneur was someone who helped launch a music band) and should be involved in charitable and religious bodies; should be involved in NGOs; should set up friendly meeting on a weekly or monthly basis and take part in them. 3. Effectiveness in promoting entrepreneurship to strengthen the sense of community is recommended: i. they should always have this feeling that their work individually or in community level can be effective and useful. ii. And should believe that they can be effective in solving the problems of friends, organizations and various businesses. References 1.Anheier H.K. 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