The Networks Don't Lie: Social Relations and the Performance of Different Startup Types

Abstract

There is significant and growing interest in entrepreneurship. Notwithstanding this interest, sizable barriers limit our understanding of the phenomenon and, by implication, our understanding of who is most likely to succeed in it. One fundamental challenge we face is the confounded language we employ: “Self-employment,” “business ownership,” and various conceptualizations of “entrepreneurship” have often been used interchangeably. This chapter argues that a potentially fruitful basis for predicting the probable form and performance of various startups is offered by attending to the social relational characteristics of the individuals or teams engaged in them, including their advisors and investors. Using this approach, novel propositions are proposed that draw and define boundary conditions.

Keywords: social networks, teams, entrepreneurship, business ownership, self-employment

JEL Classification: M13, Z13