The role of social capital, social networks and incubation in launching and growing a new venture

Abstract

The challenges faced by early-stage entrepreneurs are well researched, however, the role played by an entrepreneur’s social capital, social network and incubation in moving the business along the entrepreneurial process, still needs to be better understood. The objective of this study was to show that with successful networking and the use of social capital, the total early-stage entrepreneurial activity rate of South Africa could be increased.A qualitative research design was employed whereby 12 in-depth interviews were conducted. Three themes emerged from the data analyses that are the utilisation of social capital, social networks and incubators in firstly launching and growing ventures.The key findings were, firstly, that incubation should form part of an early stage entrepreneur’s social capital. Secondly, those entrepreneurs benefited from their social capital and incubator in terms of tangible and intangible resources. Finally, the entrepreneurs persevered as a result of the advice, encouragement and validation that they got from their networks.