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The Use and Effect of Social Capital in New Venture Creation - Solo Entrepreneurs vs. New Venture Teams

Author

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  • Uwe Cantner

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

  • Michael Stützer

    (School of Economics and Business Administration, Friedrich-Schiller-University Jena)

Abstract

This paper examines the use of social capital in the venture creation process. We compare solo entrepreneurs (n=182) and new venture teams (n=274) from a random sample of start-ups in innovative industries and test social capital use and its effects on firm performance. Our results reveal that solo entrepreneurs and new venture teams do not differ in their degree of use of social capital. However, there are differences in the determinants of social capital use in both groups. We find that weak ties assist solo entrepreneurs and have positive significant effects on new venture performance. For team start- ups, we find no direct effect of social capital. However, further tests indicate for teams that human capital variety positively moderates the effect of social capital on performance.

Suggested Citation

  • Uwe Cantner & Michael Stützer, 2010. "The Use and Effect of Social Capital in New Venture Creation - Solo Entrepreneurs vs. New Venture Teams," Jena Economics Research Papers 2010-012, Friedrich-Schiller-University Jena.
    • Handle: RePEc:jrp:jrpwrp:2010-012
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    References listed on IDEAS

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    Cited by:

    1. Stam, Wouter & Arzlanian, Souren & Elfring, Tom, 2014. "Social capital of entrepreneurs and small firm performance: A meta-analysis of contextual and methodological moderators," Journal of Business Venturing, Elsevier, vol. 29(1), pages 152-173.
    2. Huatao Peng & Bingbing Li & Yang Liu, 2022. "How Social Network Influences the Growth of Entrepreneurial Enterprises: Perspective on Organizational and Personal Network," SAGE Open, , vol. 12(2), pages 21582440221, June.
    3. Obschonka, Martin & Silbereisen, Rainer K. & Schmitt-Rodermund, Eva & Stuetzer, Michael, 2010. "Nascent entrepreneurship and the developing individual: Early entrepreneurial competence in adolescence and venture creation success during the career," MPRA Paper 32021, University Library of Munich, Germany, revised 21 Dec 2010.
    4. Uwe Cantner & Tina Wolf, 2018. "The Selective Nature of Innovator Networks: From the Nascent to the Early Growth Phase of the Organizational Life Cycle," Studies on Entrepreneurship, Structural Change and Industrial Dynamics, in: Serena Cubico & Giuseppe Favretto & João Leitão & Uwe Cantner (ed.), Entrepreneurship and the Industry Life Cycle, pages 175-204, Springer.

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    More about this item

    Keywords

    Entrepreneurship; Nascent entrepreneurship; Social capital; Start-up teams; Entrepreneurial learning;
    All these keywords.

    JEL classification:

    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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