Social Networking and the Development of New Ventures

This chapter takes a closer look at how social networks can affect the early development of new ventures. The dynamic role of social networks is discussed and exemplified by two longitudinal cases that illustrate the radically different ways in which social networks can influence venture development. These differences relate to social or individual ownership of the innovation process, to risks or opportunities as the focus of attention, and to the creative relationship between networking and financial bootstrapping techniques.