Do social networks affect entrepreneurship? A test of the fundamental assumption using large sample, longitudinal data

Abstract

This study empirically tests the assumptions that most research into entrepreneurial networks are based upon. Empirical data were drawn from Australia’s participation in the Global Entrepreneurship Monitor project (GEM) from 2000-2005 – an aggregate sample of 14,205 randomly selected Australians. The study demonstrated: (1) statistically significant differences in social networks when entrepreneurs and non-entrepreneurs are compared and (2) that the structural diversity of social networks changes during the entrepreneurial process. It was found that structural diversity was most important to entrepreneurs in the discovery stage, least important to entrepreneurs in the start-up stage and of medium importance to entrepreneurs in the young business stage.

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