A theoretical analysis of the role of social networks in entrepreneurship

By Dennis P. Leyden, Albert N. Link, Donald S. Siegel. 2014

214 citations recorded by the source corpus.

Entrepreneurship involves innovation and uncertainty. We outline a theory of entrepreneurship, which highlights the importance of social networks in promoting innovation and reducing uncertainty. Our findings suggest that this “social” aspect of entrepreneurship increases the probability of entrepreneurial success. The results also lend credence to theories of entrepreneurship that suggest that entrepreneurial opportunities are formed endogenously by the entrepreneurs who create them. We also consider the public policy implications of our findings.

Subfields: Accounting, Business and International Management, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/a9826eb2f2cf66e6bfcfa6ba9e65c92346ab386f

Citations in the corpus

• Equity retention and social network theory in equity crowdfunding (2016, unknown): “Consistent with Leyden et al. (2014), we observed that social network theory applies to entrepreneurial finance, as social networks help to reduce uncertainty and attract attention.”