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Do family and kinship networks support entrepreneurs?

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  • Christophe Jalil Nordman

    (Institute of Research for Development (IRD), and Développement, Institutions et Mondialisation (DIAL), France, and IZA, Germany)

Abstract

Family and kinship networks are important in helping people get jobs and start companies, as statistics for developing countries show. Promising new research has begun to assess the positive and negative effects of these family and kinship ties on entrepreneurial success. To what extent, and why, are family networks used, and do they result in better economic outcomes for entrepreneurs? Results point to the need for policymakers to identify and emulate efficient informal networks in order to develop innovative support policies for vulnerable entrepreneurs, especially for those who are attached to weak or inefficient networks.

Suggested Citation

  • Christophe Jalil Nordman, 2016. "Do family and kinship networks support entrepreneurs?," IZA World of Labor, Institute of Labor Economics (IZA), pages 262-262, May.
    • Handle: RePEc:iza:izawol:journl:y:2016:n:262
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    References listed on IDEAS

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    1. Matthew O. Jackson, 2014. "Networks in the Understanding of Economic Behaviors," Journal of Economic Perspectives, American Economic Association, vol. 28(4), pages 3-22, Fall.
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    3. Jean-Philippe Berrou & François Combarnous, 2012. "The Personal Networks of Entrepreneurs in an Informal African Urban Economy: Does the ‘Strength of Ties’ Matter?," Review of Social Economy, Taylor & Francis Journals, vol. 70(1), pages 1-30, July.
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    6. Abigail M. Barr, 2002. "The Functional Diversity and Spillover Effects of Social Capital," Journal of African Economies, Centre for the Study of African Economies, vol. 11(1), pages 90-113, March.
    7. Nordman, Christophe J. & Pasquier-Doumer, Laure, 2015. "Transitions in a West African labour market: The role of family networks," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 54(C), pages 74-85.
    8. Junfu Zhang & Zhong Zhao, 2015. "Social-family network and self-employment: evidence from temporary rural–urban migrants in China," IZA Journal of Labor & Development, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 4(1), pages 1-21, December.
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    11. Henrik Egbert, 2009. "Business Success Through Social Networks? A Comment on Social Networks and Business Success," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(3), pages 665-677, July.
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    Cited by:

    1. Getahun Fenta Kebede, 2018. "Social Capital and Entrepreneurial Outcomes: Evidence from Informal Sector Entrepreneurs in Ethiopia," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 27(2), pages 209-242, September.
    2. Getahun Fenta Kebede, 2020. "Network Locations or Embedded Resources? The Effects of Entrepreneurs’ Social Networks on Informal Enterprise Performance in Ethiopia," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(2), pages 630-659, June.
    3. Ongudi, Silas & Thiam, Djiby & Wagner, Natascha, 2023. "Public transfers and crowding-in and -out of private transfers: Experimental evidence from Kenya," World Development Perspectives, Elsevier, vol. 31(C).
    4. Pablo Ruiz-Palomino & Ricardo Martínez-Cañas, 2021. "From opportunity recognition to the start-up phase: the moderating role of family and friends-based entrepreneurial social networks," International Entrepreneurship and Management Journal, Springer, vol. 17(3), pages 1159-1182, September.

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    More about this item

    Keywords

    family and kinship networks; entrepreneurship; sharing norms; family labor;
    All these keywords.

    JEL classification:

    • D13 - Microeconomics - - Household Behavior - - - Household Production and Intrahouse Allocation
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J71 - Labor and Demographic Economics - - Labor Discrimination - - - Hiring and Firing
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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