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Social networks in the creation and death of companies

This article, the result of theoretical reflection and empirical research, analyses the phenomenon of the embeddedness of the entrepreneur and the impact of social networks on the creation and death of businesses, differentiating between those that survive and those that become extinct. Its empirical basis derives from research of a quantitative and comparative nature that was carried out in 2008-2009. To process the data, a special methodological proposal was developed, with indicators that measure some of the components of embeddedness and their impact on the business world. The results suggest that there are differences between the two aspects researched and that social networks can have a positive influence on a company's possibilities for survival in the market. This article contributes with innovation in the methodological field, as well as offering contributions at the theoretical level, thus helping to unveil some of the dimensions of the processes that lead to the creation and death of companies, with results of practical nature.

Entrepreneurship; creation and death of companies; embeddedness; social networks; embeddedness indicators


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