Social capital configurations for necessity-driven versus opportunity-driven entrepreneurs

Abstract

There is growing literature suggesting the importance of networking and even arguing that social capital may be the most significant source of knowledge for entrepreneurs. This article uses the classification of necessity-driven versus opportunity-driven entrepreneurs, which has been found to differ systematically in terms of venture growth and job creation, and also reflects the schism between the informal and formal sectors. Having unpacked the construct of networking as embedded in the theory of social capital, hypotheses are formulated which allow for statistical testing. The results add to the ongoing debate on this dualistic typology of entrepreneurs, where in several instances significant differences are detected across networking variables.