Hi fellow bloggers,
This week we started with a new course: Entrepreneurship and networks. So far we had two interesting lectures and I am looking forward to learn more about this subject! Today’s blog is about entrepreneurial outcomes accomplished by social networks. An entrepreneur inside my own network, who started a clothing business, is a perfect example of how a social network can help you realize entrepreneurial outcomes. These entrepreneurial outcomes can be divided into two categories: expressive outcomes and instrumental outcomes (Lin, 1999). The expressive goals emphasizes the protection and maintenance of your own resources through, among others, social support and family and friends. This can be related to my boss, who runs a clothing business. She has a lot of contacts who provided resources to set up her business. These contacts consist of her family and her closest friends who gave her the ‘social support’ she needed. In the beginning she kept struggling being a starting entrepreneur, but accompanied by her closest friends she got help in several ways. Nowadays, she is a successful and well known entrepreneur. She still receives help from her friends and family in order to run her business successfully. Another type of goal is the instrumental goal, which means the addition of a particular thing to your resources. It is about creating something that is not yet there. An example of this is making profit. A social network can help a lot in realizing this. My boss got financial help from her mother and father in order to start up her business. Through this way her company grew and eventually she made profit out of it. Moreover, she is properly educated, which provided her knowledge she nowadays uses running her business.
Resources out of your social network can help an entrepreneur reaching his or her goals. A broad social network can help you a lot setting up your business to a successful one, without knowing the right people your changes of success are significantly smaller.
See you next week!
Reference: Lin, Nan (1999). Building a network theory of social capital. Connections 22(1):28-51.