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Entrepreneurial networks in practice
- The focal actor (or ego) is Flora, the founder of a local social enterprise that operates in the field of health and social care. This map has been divided into sections to distinguish the main types of actor in this social network, in this case: business partners, support agencies and regulators.
- A direct tie (indicated by an unbroken line) between Sean and an Equipment Supplier. Flora also has a direct tie with this business. Direct ties play a key role in social networks, but entrepreneurs need to consider the cost (time and resources) of handling large numbers of contacts.
- An indirect tie (indicated by two connected lines) between Flora and ‘WebArt’, a graphic design consultancy who created the logo for her social enterprise. Flora is linked via Jane, a friend and communications specialist who has helped to launch her venture. The owner of ‘WebArt’ is a member of Jane’s cycling club and she recommended the firm. Jane’s role as a ‘bridge’ or ‘broker’ is a key feature of social networks and one that is often occupied by entrepreneurial actors.
- A strong tie (indicated by a thick line) representing the close personal relationship that Flora has with her brother-in-law, Sean, who is a co-director of the social enterprise and manages its online operations. Strong ties are important ways of building trust but dense networks with large numbers of strong ties can have a negative impact on entrepreneurial activity (Anderson & Jack 2002).
- A weak tie (indicated by a dashed line) representing a more distant relationship. In this case, it is represented by the link that connects her to a national support network for social enterprises. As Granovetter (1973) highlighted, the ‘strength’ of weak ties for the entrepreneur results from their capacity to open up access to new knowledge, resources and opportunities.
- A latent tie (indicated by a dotted line), representing an individual or organisation that is not yet connected. In this case, Flora recently met a manager from a health commissioning agency in a neighbouring city and plans to contact her again if they decide to expand their activities in that area. Experienced entrepreneurs often collect latent ties and re-activate them selectively (e.g. ‘someone I met on a train …’) to pursue new opportunities (Ramachandran and Ramnarayan, 1993).