Today’s blog will tell something about entrepreneurial outcomes form social networks. I will give two examples of entrepreneur using their social network as a recourse to get an entrepreneurial outcome and try to explain what would happen if this social recourse wasn’t there.
The first example is Jay-Z as an entrepreneur in the music industry, he started his own record label and for this label to grow he needed hip-hop artists. From the past when he used to deal drugs he knew some good hip-hop artists who fit in the style of the record label and Jay-Z managed to get those rappers to sign for his record label. In this case he used his own old network as a resource. The outcome was growth for his company and can be categorised as an instrumental goal rather then an expressive goal since he added something to his own recourses. I do still think it is possible to categorize this as an expressive goal since the outcome it is also possible to create accompaniment or maybe even create good friends.
I think that if Jay-Z wouldn’t have the particular social recourse the outcome could have be the same, the only difference is that it would cost more time to find and reach these people. Most of the new hip-hop artist for the record label didn’t have anything to lose so it probably still wouldn’t cost any extra money.
Another example is the beginning of Nike. Philip H. Knight borrowed money from his father to buy the very first samples of the running shoes to be examined. Short after that he ordered 200 more pairs of shoes and they sold good. After that he eventually started Nike. The outcome of this example is purely an instrumental outcome where the resource is money from his father. He simply wanted to see if there was business for the running shoes. If he was not to have the money from his father he wasn’t able to test if people wanted to buy the shoes. He could have been able to get the money elsewhere is he really wanted to, but the question is if he was motivated enough to do this.
Theory attained form:
Van der Gaag, M. (2014), Lecture 2: [the bright side of] social capital[PowerPoint slides]. Retrieved from