I couldn’t make it last week to write assignment 1, so I’m writing it now. The assignment was to write about the topic of social capital and to bring this into practice for an entrepreneurs. Social interactions are the foundation of our existence and social networks are at the root of entrepreneurship. Social networks are patterns of relationships, called ties, between a set of actors. Actors can be individuals or organisations. Social networks can have several outcomes. There is made a distinction between expressive goals and instrumental goals. Expressive goals are the goals that protect the resources you already have, like (mental) health, social support and good friends. Instrumental goals are the goals that add something to your resources, like higher education, status of prestige, a better job or promotion.
To take this theory into practice I would like to use an example of an entrepreneur I know, named Jan (not his real name). Jan has his own construction company which he started 8 years ago. Before he started this company he worked in de construction industry himself as an employee at a large, well-known company. He was friends with his employer and the employer taught his how to open an own firm and he told him about how he started. Jan took this advice when the company he worked for got affected by the economic crisis. This network with his employer resulted in two different instrumental outcomes, namely a higher education, and since Jan also started to earn more with his own company is resulted in more income and higher status. Because Jan never had an official education for the job he was doing, he couldn’t do his own administration. Luckily for him, he had an daughter who did know what to do and solved his administration for him. This network resulted in another instrumental outcome. He also had expressive outcomes from his daughter and the rest of his family, namely moral support.
Amira Ramic /2159740