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In what ways and to what extent do networks and social capital influence and support entrepreneurs - Essay Example

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In what ways and to what extent do networks and social capital influence and support entrepreneurs? Most of the studies on the entrepreneurs’ networks involve the networks and social capital, as the independent variables which affect the actions of the entrepreneurs and the outcomes of their actions…
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In what ways and to what extent do networks and social capital influence and support entrepreneurs
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Download file to see previous pages The discussion would begin with a brief overview on the entrepreneurship approaches with respect to the social network, which would further lead to the detailed discussion on social networks and theories. Further, several theories on social capital and network would be evaluated to understand their significance in entrepreneurship. The contribution of family for the creation of social capital would be also analyzed here in details. Finally the essay would be concluded stating the entrepreneurial traits and its role in the present global business scenario. An increasing trend of embedding the business decisions in the social structures, by the entrepreneurs, has been increasingly noticed these days. So a structural approach has been used to understand how the entrepreneurs utilize the social relations to acquire resources or suggestions for floating a venture or business. It goes without saying that for establishing a business, an entrepreneur requires to have various resources and contacts during different phases. Based on the structural approach, it has also been understood that irrespective of the cultural differences, entrepreneurs approach their social relations in the same way to acquire resources. ...
This definition is also applicable for those who take over an existing venture, to start a business. The concept of social network focuses on the relationship between the entrepreneurs and those who provide resources to them for establishing the business. The entrepreneurs must have the set of skills and knowledge to test the networks and resources before utilizing them, but they also need to complement those resources by producing and delivering the goods and services for them. The entrepreneurs also get the access to the knowledge, support and distribution channel with the help of social networks. The availability of such resources helps the new firm to attain a sustainable growth. However, social networks are not permanent and they can be stimulated according to the different requirements. In order to fit the needs of the enterprise, the entrepreneur consider both the distant and close networks, with respect to the business decisions. Family members also play a critical role in case of entrepreneurship, as they also offer different kinds of help inform of assets or finances (Thornton, and Flynn, 2003, p. 401-402). Social networks are gaining importance among the business owners or entrepreneurs because they assist the start up firms with information, new business opportunities, advices, and various other forms of resources. The entrepreneurs to some extent are depended on these social networks which includes their personal relationship for problem solving and decision-making functions. The development of the social capital is also the outcome of establishing strong social networks. The social capital derived from the networks consist of the resources that is obtained from ...Download file to see next pagesRead More
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