Social Network Ties as Drivers of Entrepreneurial Ventures in Sub-Saharan Africa: Substitutes or Complements?

While attempting to launch and sustain a new venture in general, can be risky and challenging, the obstacles of launching a business in Sub-Saharan Africa seem to be even more daunting. With weak political structures, poor... [ view full abstract ]

While attempting to launch and sustain a new venture in general, can be risky and challenging, the obstacles of launching a business in Sub-Saharan Africa seem to be even more daunting. With weak political structures, poor infrastructure and lack of resources, entrepreneurs in this region often rely on social network ties to marshal the resources needed to launch and sustain a new business venture.  This research delves deeper into these challenges by exploring the influence of gender, level of alignment with governmental policies, and degree of new venture novelty on the use of social network ties as substitutes and complements to formal institutional support.  Both theoretical and practical implications are discussed as well as implications for future research.

Keywords: Social Networks, Entrepreneurship, Africa, Institutional Barriers, Governmental Policies