ABSTRACT
Social networks provide access to resources that are critical to firm formation, survival, and success. In this chapter, social network characteristics such as the strength of ties and the number and types of structural holes are discussed. However, it is possible for individuals to have many casual contacts, or weak ties, within their social networks with little required interaction or relationship management. The creation of entrepreneurial teams to found new ventures is closely related to the importance of social networks and in trying to increase access to information and resources. Entrepreneurial teams are created through the social networks of entrepreneurs. From the three major perspectives discussed above weak and strong ties, structural holes, and network diversity individuals with wide and diverse social networks, rich in structural holes, and who interact with many weak ties intermixed with some key strong ties are best suited to achieve success with new ventures.
