Hi readers, welcome to my first blog about Entrepreneurship and Networks!
In this blog I will be talking about Jurgen Ottenhof, an entrepreneur and founder/owner of Oma Bobs Croquetten. I will try to describe 3 organizational outcomes he had realized with the help of his social network.
According to Linn in his article “Building a Network Theory of Social Capital” (1999), “generally three explanations can be offered as to why embedded resources in social networks will enhance the outcomes of actions. For one, it facilitates the flow of information”. In Jurgen’s case, this was very apparent. Jurgen had his own restaurant in Amsterdam, where he, once every couple of weeks, put the “garnalenkroket” on the menu. People loved this product and they wanted him to put this meal on the menu more often. In fact, this product was loved so much, that more and more customers were drawn to his restaurant, which made it a very successful restaurant. In this case, the action was Jurgen presenting his self-made garnalenkroket, and the outcome were people informing other people about this restaurant (flow of information). I think that if this wasn’t the case, Oma Bobs eventually wouldn’t have grown this big.
Eventually, so many people started to hear from Jurgen’s garnalenkroketten, including various restaurants, that business became big for Jurgen. He had to expand, and via a representative of the brand of beer he sold at his own restaurant, he could buy a Vespa motorized tricycle. This person was in Jurgen’s network and could provide him with useful resources, which is also described by Linn. I think that if the representative hadn’t been there to help Jurgen, other people would have, since the business was becoming so popular.
The last outcome I would like to discuss is that, through Jurgen’s hard work and his profitable business, he could first borrow money from his father-in-law in order to buy a bigger vehicle, and later banks were calling Jurgen (instead of the other way around), because they had heard of the growing kroketten business. In times of the economic crisis, Jurgen could borrow money from the banks to buy building for the Oma Bobs factory.
I hope you’ve enjoyed reading my blog and hopefully you will read my next week’s blog as well! 🙂