Entrepreneurial networks: Findings from a South African study

Abstract

The purpose of the empirical study is to make intelligible how entrepreneurs use networks, as well as describe the characteristics of these networks. A survey of 325 entrepreneurs from the KwaZulu-Natal province of South Africa was conducted. Results indicate that although South African entrepreneurs have more contacts in their networks, they spend less time in developing and maintaining contacts when compared to their international counterparts. Results show that South Africans have established their network ties for a long time, although most of the contacts were met through the entrepreneur’s own effort rather than through referrals. Results also show that most of the network members are either friends or family members, which is different to international findings where most network members are business associates.