How exactly do networking Investments pay off? Analyzing the impact of nascent Entrepreneurs networking Investments on Access to Start-Up Resources

Thorsten Semrau and Arndt Werner

MPRA Paper from University Library of Munich, Germany

Abstract: It is widely recognized that networks provide access to the resources necessary for founding a business. Up until now, however, the relationship between networking investments and the availability of resources has not been analyzed in depth. Using a sample of 416 nascent entrepreneurs, we address this issue, and provide evidence that networking investments lead to diminishing marginal resource returns in terms of financial, informational, emotional and contact support. Our results also show that resource returns strongly vary with resource type. While emotional support is quite easy to get, many more networking investments are needed to achieve financial support.

Keywords: Networks; Networking Investments, Resource Access, Nascent Entrepreneurship (search for similar items in EconPapers)
JEL-codes: D23 D85 J24 L26 M13 (search for similar items in EconPapers)
Date: 2009-06-01
New Economics Papers: this item is included in nep-ent and nep-net
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18350

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