Examining the Social Capital Content and Structure in the Pre-start-up Planning

AbstractExisting empirical research suggests that the pre-entry knowledge and the entrepreneur's prior social relationships will influence the new venture's chances of survival and its future growth on the market. In the present paper we argue that pre-start-up planning supports the entrepreneur with identification of necessary resources and infrastructure that help him achieve the business vision and goals. As such, the paper strives to develop a more meaningful content for the notion of social capital, by acknowledging the social capital structure and components in the acceptation of the most popular scholars in the research field. It also examines the social capital dimensions and sources of generation in the pre-entry stage of the entrepreneurial process, by reviewing the current state of art built around different researches conducted in the specialized literature. To support the entrepreneurial behaviour of creating social capital, the article is concluded with a discussion of the role of social capital in the pre-start up planning, as component of the pre-entry knowledge possessed by the entrepreneurs, such that the social capital becomes not only an enabler for achieving the breakeven point, but a driver for success and profitability. If the current state or art looks at the pre-entry knowledge as prerequisite for the wealth of an organization, this paper articulates the importance of social capital, as key component and contributor to the company's success