ENT 600 Week 3 Building Social and Financial Capital

As a founder of a company, I can certainly appreciate the importance of social and human capital.  While my company was a small endeavor, the social capital that I had built was invaluable as we needed a loan.  Imagine a young couple with a drive for doing business but very little money.  Luckily, the young couple had a prior relationship with the lending institution and a good reputation.  This allowed them to receive a loan on a business plan and an idea for a business.  The connections do not stop there.  It is necessary to have human capital as well.  Whether you need a builder quickly, an attorney on the fly, or an accountant to keep your numbers straight, you need connections!  As the book, The Founder’s Dilemmas, emphasizes age could be in your favor.  Having been around a while, I have established relationships with many professionals in my industry that can answer questions, offer suggestions, or even lend me money.  Luckily, I am an extrovert and do not meet a stranger.  I will keep making friends and acquaintances because who knows what the future holds. 


Wasserman, Noam. The Founder’s Dilemmas: Anticipating and Avoiding the Pitfalls That Can Sink a Startup. Princeton, N.J.: Princeton University Press, 2012.

4 thoughts on “ENT 600 Week 3 Building Social and Financial Capital

  1. Tina,
    I completely agree with your summary. Social capital is invaluable. Making those connections can help any entrepreneur during their venture. Not only in the beginning, but life happens, and you never know what you may need. No one new a pandemic was going to happen this year but it has and many companies have suffered and had to rely on some of those connections they have made. Being an extrovert I know helps and since you have been in business for 21 years, I know you have built so many good business relationships. Great summary.

    Katherine

    Like

  2. Tina,
    I agree that it is important to be “wealthy” when it comes to social capital. Having a human connection can make the difference between a yes and a no in a business deal. So many things are processed online these days, I wonder how that will change our ability to really connect with others while building a network of professionals? Do you think you would have been able to get your loan approved without your personal relationship?

    Like

    1. Thank you for your comment. We would have gotten the loan due to our previous loans with the institution but the process was easier. I agree that with online processing things are not as personable. I really would prefer to deal with a person as opposed to a keyboard.

      Thank you,
      Tina Jones

      Like

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