n South African Journal of Economic and Management Sciences - Social capital configurations for necessity-driven versus opportunity-driven entrepreneurs




There is growing literature suggesting the importance of networking and even arguing that social capital may be the most significant source of advantage for entrepreneurs. This research 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 diversity, ties, types of assistance and support perceptions.


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