Changes in networks influencing entrepreneurial activity of start-up founders: The increasing importance of the weak ties

Abstract

ABSTRACT This study aims to identify the relationship between “weak ties” and entrepreneurial activities among start-up founders through structured interviews with 19 start-up founders whose start-ups are funded by venture capital. The results revealed that these entrepreneurs were more frequently influenced by individuals with weaker relationships, such as acquaintances, seniors, or colleagues, rather than by family or relatives. Previous discussions on the family background of founders have typically focused on small to medium businesses (SMBs) and have generally not considered the size and type of their business. However, a different trend has been noted in recent high-profile start-ups. Due to changes in society and the spread of information technology services, such as social networking services, forming networks has become easier. As a result, people are more likely to be influenced by those with weaker relationships. This study found that the family background of founders of internet-related start-ups, the focus of this research, may differ from that of founders of SMBs. This finding could provide valuable suggestions for policy making and implementation of methods to increase the number of venture capital–backed start-ups and entrepreneurs with an orientation toward rapid business growth, which has been a strong social demand in recent years.