When does the socio‐cultural context matter? Communal orientation and entrepreneurs’ resource accumulation efforts in Africa

<jats:p>We examined the effect of entrepreneurs’<jats:italic>communal orientation</jats:italic> and social capital on entrepreneurs’ acquisition of resources, and the cost of raising those resources. Using an errors‐in‐variables estimation in a sample of 242 Ugandan entrepreneurs from Kampala, we find that <jats:italic>shared identity</jats:italic> is positively associated with the quantity of resources raised by entrepreneurs, whereas <jats:italic>shared identity</jats:italic> and <jats:italic>communal orientation</jats:italic> are associated with a higher cost of raising resources. Further, <jats:italic>communal orientation</jats:italic> positively moderates the relationship between <jats:italic>kin composition</jats:italic> and the quantity of resources raised; whereas <jats:italic>communal orientation</jats:italic> negatively moderates the relationship between <jats:italic>trust</jats:italic>, <jats:italic>shared identity</jats:italic>, and resources. In contrast, a high <jats:italic>communal orientation</jats:italic> is associated with increased cost of raising resources when <jats:italic>shared identity</jats:italic> is high. These findings reveal that entrepreneurs’ socio‐cultural contexts, particularly <jats:italic>communal orientation</jats:italic>, has a moderating effect on the relationship between entrepreneurs’ social capital and resource accumulation.</jats:p>