Entrepreneurial Networks and New Organization Growth

Abstract

The emerging literature on entrepreneurial networks suggests that entrepreneurial action sets may be organizational in nature and may be investigated in organizational terms. We link three pre-founding entrepreneurial action set variables: (1) Size, (2) Degree (a measure of inter-connectivity within the entrepreneurial action set), and (3) Frequency (a measure of how often entrepreneurial action set members Interact with each other) to first-year new organization growth. Data were gathered through structured interviews with 44 entrepreneurs and analyzed with multiple regression. The hypotheses were strongly supported by the data.