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European Urban and Regional Studies
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Trust in a ‘Post-Socialist Region’

A Study of East German ICT Entrepreneurs’ Willingness to Trust Each Other

Henning Nuissl

UFZ Centre for Environmental Research, Germany, henning.nuissl{at}ufz.de

As trust is essential for close mutual cooperation, trust between entrepreneurs running SMEs (small and medium-sized enterprises) has been increasingly acknowledged as an important factor in regional economic development. However, one of the main problems of post-socialist economies is that the increased need for entrepreneurial trust is thwarted by conditions discouraging the creation of trust. In order to investigate this problem, an empirical study was carried out among ICT entrepreneurs in eastern Germany to examine the main aspects of trust identified in the recent literature on SMEs and entrepreneurship. The findings revealed that although barriers impeding the emergence of inter-entrepreneurial trust do not necessarily exist in a lagging, transforming region such as eastern Germany, its development may prove more difficult than elsewhere. Problems can be attributed to ‘legacies of socialism’ in the knowledge patterns of ‘post-socialist entrepreneurs’ and, more importantly, their perception of a general lack of market power. However, actual problems of building entrepreneurial trust can usually be resolved by careful reflection on the part of those concerned.

Key Words: qualitative content analysis • SME cooperation • trust

European Urban and Regional Studies, Vol. 12, No. 1, 65-81 (2005)
DOI: 10.1177/0969776405046263


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