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This chapter explains the linkage between resource acquisition and social embeddedness in the entrepreneurial process. It emphasises that new venture creation is complex and reflects combinations of material and immaterial things, goods and forces. Put another way, combinations of tangible resources such as premises, materials, equipment and finance, and intangible resources, including information, knowledge, intellect and human resources. Then the chapter stresses that entrepreneurial newcomers lack crucial resources, because of their smallness and newness. In addition, it emphasises how social embeddedness and social relations enable entrepreneurial newcomers to overcome resource constraints. Furthermore, the chapter illuminates how social capital permits a more complete and holistic understanding of social interaction across society and in the management and entrepreneurial process. Social capital theory extends the embeddedness concept and emphasises the multifaceted social structures, affairs and practices that promote access to resources.
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- Entrepreneurial Newcomers: Resources and Social Embeddedness
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