IDEAS home Printed from https://ideas.repec.org/p/eim/papers/h201111.html

The networks of the solo self-employed and their success

Author

Listed:
  • Sierdjan Koster
  • Nardo de Vries

Abstract

An increasing proportion of the Dutch labour market is formed by the solo selfemployed (i.e. one person enterprises, mainly offering their own human capital). Knowledge on solo self-employed is still limited and this makes tailoring policy measures towards this group difficult. Their network position may play a crucial role in economic performance of solo self-employed, as resources available are by definition limited. They are likely to depend heavily on their professional networks for acquisition and mobilizing additional resources. In this paper we use a specially constructed panel of solo self-employed from the Netherlands to explore the motives, gestation and spatial extent of their networks. (Multinomial) logit models are used to relate network position to their economic performance. The results suggest that the motives for and gestation of cooperation between solo self-employed differ from other groups of entrepreneurs. In contrast to existing ideas about network benefits, information sharing and knowledge spill-overs are not an important motive for solo self-employed. Rather, they focus on executing jobs and joint acquisition. Finally, we find that in terms of success a good network position is negatively related to economic performance. In more detail, cooperation on scope is connected to success, whereas joined acquisition is related to poor performing solo self-employed. It seems that solo self-employed reach out to their colleagues when business is slow.

Suggested Citation

  • Sierdjan Koster & Nardo de Vries, 2011. "The networks of the solo self-employed and their success," Scales Research Reports H201111, EIM Business and Policy Research.
    • Handle: RePEc:eim:papers:h201111
    as

    Download full text from publisher

    File URL: http://www.entrepreneurship-sme.eu/pdf-ez/H201111.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bengt Johannissson, 1998. "Personal networks in emerging knowledge-based firms: spatial and functional patterns," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 10(4), pages 297-312, January.
    2. Böheim, René & Muehlberger, Ulrike, 2006. "Dependent Forms of Self-employment in the UK: Identifying Workers on the Border between Employment and Self-employment," IZA Discussion Papers 1963, IZA Network @ LISER.
    3. Bögenhold, Dieter & Fachinger, Uwe, 2009. "Entrepreneurship, Innovation and Spatial Disparities: Divisions and Changes of Self-employment and Firms," MPRA Paper 19245, University Library of Munich, Germany.
    4. Bruderl, Josef & Preisendorfer, Peter, 1998. "Network Support and the Success of Newly Founded Businesses," Small Business Economics, Springer, vol. 10(3), pages 213-225, May.
    5. L Oerlemans & R M Bakker & J. Knoben & Nardo de Vries, 2010. "The Nature and Prevalence of Inter-Organizational Project Ventures: Evidence from a large scale Field Study in the Netherlands 2006-2009," Scales Research Reports H201016, EIM Business and Policy Research.
    6. Donckels, Rik & Lambrecht, Johan, 1995. "Networks and Small Business Growth: An Explanatory Model," Small Business Economics, Springer, vol. 7(4), pages 273-289, August.
    7. Lewin, Peter & Phelan, Steven E, 2000. "An Austrian Theory of the Firm," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 13(1), pages 59-79, February.
    8. André van Stel & Chantal Hartog & J. Cieslik Cieslik, 2010. "Measuring Business Ownership Across Countries and Over Time: Extending the COMPENDIA Data Base," Scales Research Reports H201019, EIM Business and Policy Research.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Broström, Anders & Baltzopoulos, Apostolos, 2013. "Higher education experiences and new venture performance," Working Paper Series in Economics and Institutions of Innovation 321, Royal Institute of Technology, CESIS - Centre of Excellence for Science and Innovation Studies.
    2. Helena Persson, 2004. "The Survival and Growth of New Establishments in Sweden, 1987-1995," Small Business Economics, Springer, vol. 23(5), pages 423-440, October.
    3. Colin C. Williams, 2023. "A Modern Guide to the Informal Economy," Books, Edward Elgar Publishing, number 18668.
    4. Annika Rickne, 2006. "Connectivity and Performance of Science-based Firms," Small Business Economics, Springer, vol. 26(4), pages 393-407, May.
    5. Andreas Koch & Harald Strotmann, 2006. "Determinants of Innovative Activity in Newly Founded Knowledge Intensive Business Service Firms," International Studies in Entrepreneurship, in: Michael Fritsch & Juergen Schmude (ed.), Entrepreneurship in the Region, chapter 10, pages 195-224, Springer.
    6. Jean–Luc Arregle & Bat Batjargal & Michael A. Hitt & Justin W. Webb & Toyah Miller & Anne S. Tsui, 2015. "Family Ties in Entrepreneurs’ Social Networks and New Venture Growth," Entrepreneurship Theory and Practice, , vol. 39(2), pages 313-344, March.
    7. Leung, Aegean & Zhang, Jing & Wong, Poh Kam & Foo, Maw Der, 2006. "The use of networks in human resource acquisition for entrepreneurial firms: Multiple "fit" considerations," Journal of Business Venturing, Elsevier, vol. 21(5), pages 664-686, September.
    8. Małgorzata Pusz & Andrew E. G. Jonas & Pauline Deutz, 2024. "Knitting Circular Ties: Empowering Networks for the Social Enterprise-led Local Development of an Integrative Circular Economy," Circular Economy and Sustainability, Springer, vol. 4(1), pages 201-232, March.
    9. Susanna Slotte–Kock & Nicole Coviello, 2010. "Entrepreneurship Research on Network Processes: A Review and Ways Forward," Entrepreneurship Theory and Practice, , vol. 34(1), pages 31-57, January.
    10. Enrico Santarelli & Hien Tran, 2013. "The interplay of human and social capital in shaping entrepreneurial performance: the case of Vietnam," Small Business Economics, Springer, vol. 40(2), pages 435-458, February.
    11. Wang, Chun-Ju & Wu, Lei-Yu, 2012. "Team member commitments and start-up competitiveness," Journal of Business Research, Elsevier, vol. 65(5), pages 708-715.
    12. Piangpis Sriprasert Author_Email: s.piangpis@yahoo.com & Oraphan Chanin & Rattiya Suttara, 2011. "Exploring The Relationship Between Managerial Functions And The Success Of Home Stay Community Based Tourism In Thailand: A Case Study Of Phomlok, Nakhon Si Thammarat, Thailand," 2nd International Conference on Business and Economic Research (2nd ICBER 2011) Proceeding 2011-320, Conference Master Resources.
    13. Watson, John, 2007. "Modeling the relationship between networking and firm performance," Journal of Business Venturing, Elsevier, vol. 22(6), pages 852-874, November.
    14. Nicolai J. Foss, 2002. "The Strategy and Transaction Cost Nexus Past Debates, Central Questions, and Future Research Possibilities," DRUID Working Papers 02-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    15. Virginia Navajas-Romero & Rosalía Díaz-Carrión & Antonio Ariza-Montes, 2019. "Decent Work as Determinant of Work Engagement on Dependent Self-Employed," Sustainability, MDPI, vol. 11(9), pages 1-17, April.
    16. Christopher Hayter, 2013. "Conceptualizing knowledge-based entrepreneurship networks: perspectives from the literature," Small Business Economics, Springer, vol. 41(4), pages 899-911, December.
    17. Mehmet Bac & Eren Inci, 2010. "The Old‐Boy Network and the Quality of Entrepreneurs," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 19(4), pages 889-918, December.
    18. Leitão, João & Franco, Mário, 2008. "Individual Entrepreneurship Capacity and Performance of SMEs," MPRA Paper 8179, University Library of Munich, Germany, revised 09 Apr 2008.
    19. Peter A. Gloor & Pierre Dorsaz & Hauke Fuehres & Manfred Vogel, 2013. "Choosing the right friends - predicting success of startup entrepreneurs and innovators through their online social network structure," International Journal of Organisational Design and Engineering, Inderscience Enterprises Ltd, vol. 3(1), pages 67-85.
    20. Cheryl R. Mitteness & Rich DeJordy & Manju K. Ahuja & Richard Sudek, 2016. "Extending the Role of Similarity Attraction in Friendship and Advice Networks in Angel Groups," Entrepreneurship Theory and Practice, , vol. 40(3), pages 627-655, May.

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eim:papers:h201111. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Webmaster EIM The email address of this maintainer does not seem to be valid anymore. Please ask Webmaster EIM to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/eimbpnl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.