10 Comments

  1. Hi Katherine,

    I like to the quote that you included about social capital being the key to entrepreneurial success. I don’t own a business but a few years ago, I entered into multi-level marketing, and while financial capital was definitely needed to start and maintain the business, social capital was EVERYTHING in that market. My husband has been in his industry for decades and has this made great connections. I have held multiple roles over the last decade, and we have lived in different communities, so social capital is something that I feel I’m just now building.

    Great post! -Nicole Woods

    Like

    1. Nicole,
      Completely agree, social capital is so vital. This ultimately could lead you to the financial capital you need. Always keep your mind open to who and what is around you. Good luck continuing to build up yours.
      Katherine

      Like

  2. Katherine,
    Great post the new for social and financial capital. I would have to agree that relationships with people are necessary. Having a variety of individuals that are able to assist you when needed is so valuable. I know that the relationships that we have gathered while attending these classes will be invaluable in the future.
    Tina Jones

    Like

  3. You make an excellent observation that social capital can lead to financial capital. Afterall, people don’t usually hand out money to strangers. You usually have to build some kind of relationship, be it business or personal, to be approved for financing. Do you think social capital is more important than financial capital? I think there are different levels of social capital that make them more important. Such as a close personal friend with entrepreneurial experience may be a more valuable connection than say your landlord. Both may contribute to your network, but you probably rely on the friend more frequently than your landlord. However, I don’t want to discredit the importance of financial relationships. Just because you look good on paper doesn’t necessarily mean you will get the funding you need. Our reading this week definitely made me think about the weak spots in my current network that I need to build on to be successful in my startup.
    -Bri

    Like

    1. Bri,
      I agree with your statement about not underestimating financial importance. You can build all the relationships you want, but you also need that financial capital to make it happen. I also think really sitting down and evaluating your network is important and a smart idea that will push you farther then you probably realize.

      Katherine

      Like

  4. Hi Katherine!
    I really like how you discuss social capital as being the most important aspect of starting a successful start up. You place a lot of emphasis on this type of capital and I think you make a good point. Forming the right relationships can open new avenues and pathways that one never knew existed or thought capable of entering. I know some people who are very hesitant about using social capital, as they don’t want to feel indebted to anyone for anything (even if it is just an opportunity), but I also know others who take every opportunity available to them. I think finding a balance between these two types of people is important, also knowing the types of people you are forming relationships with and what might be expected of you in the future. Regardless, forming these relationships can lead to greater prospects in the future and better financial opportunities and success.
    I enjoyed reading your thoughts!
    Victoria

    Like

  5. I agree social capital is one of the most important. You can get a lot done by knowing the right people. Sometimes it reduces the need for as much financial capital because these people will often ‘help out a friend’ for free or a much lower cost than hired social capital.

    Like

Leave a Reply to kwpearson1 Cancel reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s