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.