The Effect of Social Networks on Resource Access and Business Start-ups

Abstract

In previous research, entrepreneurs' social networks are expected to influence entrepreneurial success because they give access to resources. This is confirmed in this study. In most research it is also believed that network features such as strength of ties determine to a great extent what kind of resources the entrepreneur receives. Although this last assumption has important implications for entrepreneurship research and for practice, the validity of the assumption has not been put to the test in previous research. The analysis of data from an empirical study of entrepreneurs in Norway gives at best partial support for the assumption. Contrary to what should be expected, the results indicate that strong ties are important channels for information and that weak ties give access to finance.