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Business Success Through Social Networks? A Comment on Social Networks and Business Success

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  • Henrik Egbert

Abstract

In the literature on entrepreneurship in developing countries, the argument that social networks are an essential factor for entrepreneurial success has been given considerable attention. This article challenges this one‐sided view by pointing out negative and restrictive effects of social networks on entrepreneurial success in particular, and on economic development in general. The article is structured as a comment on Kristiansen (2004), who worked on social networks and conducted field research in the city of Tanga, Tanzania, similar to the author, who had done the same two years previously. The findings from a six‐month field research are used in order to articulate important aspects left out in Kristiansen's discussion.

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  • Henrik Egbert, 2009. "Business Success Through Social Networks? A Comment on Social Networks and Business Success," American Journal of Economics and Sociology, Wiley Blackwell, vol. 68(3), pages 665-677, July.
    • Handle: RePEc:bla:ajecsc:v:68:y:2009:i:3:p:665-677
    DOI: 10.1111/j.1536-7150.2009.00643.x
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    References listed on IDEAS

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    1. Fafchamps Marcel, 2002. "Spontaneous Market Emergence," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 2(1), pages 1-37, June.
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    Cited by:

    1. Philippe Alby & Emmanuelle Auriol & Pierre Nguimkeu, 2020. "Does Social Pressure Hinder Entrepreneurship in Africa? The Forced Mutual Help Hypothesis," Economica, London School of Economics and Political Science, vol. 87(346), pages 299-327, April.
    2. Pavlin Bonev & Henrik Egbert & Thomas Neumann, 2016. "Examining Entrepreneurial Potential," International Journal of Business and Management, Canadian Center of Science and Education, vol. 11(10), pages 1-16, September.
    3. Katarzyna Cieslik & Olivia D’Aoust, 2018. "Risky Business? Rural Entrepreneurship in Subsistence Markets: Evidence from Burundi," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 30(4), pages 693-717, September.
    4. Henrik Egbert & Teodor Sedlarski, 2011. "Exploring Impact: Negative Effects of Social Networks," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 1(2), pages 1-80.
    5. Henrik Egbert & Gundula Fischer & Sebastian Bredl, 2011. "Different Background— Similar Strategies," Journal of Entrepreneurship and Innovation in Emerging Economies, Entrepreneurship Development Institute of India, vol. 20(2), pages 189-205, September.
    6. Christophe Jalil Nordman, 2016. "Do family and kinship networks support entrepreneurs?," IZA World of Labor, Institute of Labor Economics (IZA), pages 262-262, May.
    7. Elisa Salvador & Florence Pinot de Villechenon & Humberto Lopez-Rizzo, 2014. "European SMEs and the Brazilian market: the key role of social networks," Post-Print hal-02520422, HAL.
    8. Liang Han & Alan Benson, 2010. "The Use and Usefulness of Financial Assistance to UK SMEs," Environment and Planning C, , vol. 28(3), pages 552-566, June.
    9. Egbert, Henrik & Fischer, Gundula & Bredl, Sebastian, 2010. "Different background - Similar strategies: Recruitment in Tanzanian-African and Tanzanian-Asian companies," Discussion Papers 53, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    10. Egbert, Henrik & Fischer, Gundula & Bredl, Sebastian, 2009. "Advertisements or friends? Formal and informal recruitment methods in Tanzania," Discussion Papers 46, Justus Liebig University Giessen, Center for international Development and Environmental Research (ZEU).
    11. Elias Carayannis & Stephen Clark, 2011. "Do Smartphones Make for Smarter Business? The Smartphone CEO Study," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 2(2), pages 201-233, June.

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