Social Networks And Entrepreneurial Growth

Abstract

Social networks are important to new entrepreneurs and small business owners because the ability to access information, advice, and necessary resources is vital to the success of new firms. This study examines the social networks of European business owners according to employment size after approximately three years of survival as a business. The results show that the sources of advice used at start-up varied by the size of business with employers of ten or more people more likely to report having received advice from professional acquaintances, financial institutions and training programs, and less likely to have received advice from family and friends or professional consultants. Although these people were more likely to report that they did not need advice, they were also the least likely to report that they had no access to advice. Those with between one and nine employees were the most likely to report using professional consultants (a formal source), suggesting their informal social networks were not as well­­-developed.