Abstract

This paper studies entrepreneurial networks in a former socialist economy setting. The aim of the paper is to investigate motivations and benefits of specific entrepreneurial networks. The paper employs qualitative methodology with in depth interviews with 37 entrepreneurs. Our analysis reveals that entrepreneurs are not keen to develop strong business ties through any of the identified networking forms, even though conditions to form such ties do exist. Our findings suggest that besides entrepreneurial motivation to form business networks, the particular aspects of the transitional socio-economic environment have a significant effect on the formation of entrepreneurial networks. Theoretically, this paper demonstrates that formation of strong entrepreneurial business ties may not be automatic, even if the right conditions for tie formation are in place. More broadly, this study contributes to a more complete picture of the relationship between socio-economic context and entrepreneurial processes.

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