Networking: A Critical Success Factor for Entrepreneurship

Abstract

This study explores how individual and inter-organizational networking, as mediators, may provoke desired entrepreneurial success. A quantitative study using Partial Least Squares (PLS) was conducted to determine: How and to what extent do systemic and individual factors—mediated by inter-organizational and individual social networking activities—impact the likelihood of entrepreneurial success? To illustrate this, we investigates Puerto Rico’s (P.R.) unexplained stagnant entrepreneurial environment. Our findings reveal that Puerto Rican entrepreneurs are not using their networks efficiently to overcome the inadequate institutional structure. Therefore, a better interconnected entrepreneurial ecosystem must be designed; while entrepreneurs must use more effectively their networks.

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