#1 – Jeroen ten Hoopen – week 44 – Entrepreneurship and networks

#1 – Jeroen ten Hoopen – week 44 – Entrepreneurship and networks

Hi all,

This week we started with a new set of courses, one of which is Entrepreneurship and Networks. In this course we learn that next to financial and human capital, social capital (your network) is important for the success of an entrepreneur too. In this blog I will shortly explain what different organizational outcomes there are that are realized due to the entrepreneurs social capital. According to Lin (1999) there are two types of outcomes as a result of social capital, instrumental outcomes and expressive outcomes. Instrumental outcomes means adding something to your resources, such as (higher) education, status/prestige, higher salary, etc. Where the expressive outcomes are more focused on protection and maintenance of your resources, (mental) health, social support, accompaniment. To make this all a bit more clear for you I’m going to link this theory to practice. During the first course (Introduction to entrepreneurship) I interviewed a friend of mine who is running his own IT company. He started his ‘company’ when he was still living with his parents, fixing computers of neighbours and friends. But by doing so, more and more people got familiar with his company, which wasn’t a real company in the beginning. And more and more customers were requesting his help with their computers. So first there was just his neighbours and friends of his parents, all part of his own network, but through them he got in contact with a much broader audience that gave him a lot of opportunities to expand. This can be seen as an instrumental outcome, his network got him in touch with other customers, which led to more work and therefore a bigger profit. On the other hand there are the expressive outcomes. During the start-up phase of his company he was still young and not yet ready to become an entrepreneur, or at least that was not his plan at that moment. But his closest relationships, especially his parents pushed him to continue with what he was doing. He was and is brilliant with computers, and they recognized this back then already. So at moments when he rather wanted to hang out with friends instead of fixing the computer of the neighbours, his parents pushed him to pursued what he was so got at. Which got him to where he is now, running his own IT company, that cannot handle all the demand for his work. Now he is thankful for the support he got back then. An expressive outcome of his social capital. Well that was a short summary of this week’s work, I hope to see all of you next week!

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