For this blog we were told to write about how people use their social networks to obtain entrepreneurial outcomes. If we all look closely in our own environment we see that almost all the entrepreneurs we know use their networks to benefit their company. For this blog I have a perfect example of how your social network can help you get entrepreneurial outcomes. This example comes from my own network. I work in the catering industry. At my former work my boss decided to ‘expand his business’ so he started a new restaurant. My boss always had a strong relationship with each of his employees. Especially with the full-timers, they would go on ‘business trips’ where they spent to most time at bars and other restaurants having a good time. So when my boss opened up the new restaurant one of the full-timers decided that he also wanted to own his own restaurant so he went over to my boss and presented him with a business proposal. The deal went through and he now ownes the ‘old’ restaurant. When my boss made the announcement he told us that he never thought of selling it because it was so dear to him but because it was a good friend of him offering him the deal it was a whole new story. This story is a perfect example of embedded resources in social networks. ‘In the usual imperfect market situation , social ties located in certain strategic/hierarchical positions can provide an individual with useful information about opportunities and choices otherwise not available’ (N. Linn, 1999). Thus if my boss would have not given him access to his resources, that being the restaurant, the chance that the full-timer would have owned his own restaurant will be almost nothing. He took the jump because he was familiar with the company and with its owner.
Another example of this is that my brother now works for the company of his brother-in law. He was working on his masters when his brother in-law asked him if he would come work for him at his company. Together they have built the company to what it is today, my brother is now the marketing director and the company has keep on growing every day. This job opportunity has to do with the fact that his brother in-law trusted him which was enabled by the prospect of a shared future (Axelrod). If his brother in-law did not had given him the opportunity he would have finished his masters and would be working at a different company.