First Tuesday UFM: Social Capital, Networking and Entrepreneurship

  | 08 de noviembre de 2017  | Vistas: 147

Capital Emprendimiento First Tuesday

Peter Klein was invited by Facultad de Ciencias Económicas to participate in First Tuesday UFM, where he shared his experience in the importance of social capital and social networks for the development of entrepreneurship in society.

He introduces the theme by narrating a anecdote that proves that in social capitals, it is more important "who you know", that "what you know". Later describes what is entrepreneurship according to Harvard Economic School, and the characteristics that define it, and compares it with the new entrepreneurial models that are starting to emerge.

Another way to think about entrepreneurship, is that we don’t always start with a perfect idea of the outcome, the product, the service, the business we are gonna launch. Rather we look at the resources we currently have at hand.”

Klein emphasizes on how resources can be a limitation for entrepreneurs, however having good relationships with people who might help your with your project is important, because is most likely that you will start with them (family, friends, colleagues etc.).

There’s what you know, and what you know is important, but sometimes even more important is who you know.”

Later he talks about the experimental process that entrepreneurship entails, and the academic research about social capital and social networks. Peter describes the benefits of social capital and being well positioned in our social networks, such as the opportunity identification and the resource mobilization, access to financial capital, recruiting skilled labor and access to tacit knowledge. Then Klein talks about the costs of strong social capital and dense social networks.

Institutions promote specific policies to help entrepreneurs, but according to Klein most of the things that will actually help entrepreneurs, are social and cultural, such as property rights, the rule of law, economic freedom and broader social and cultural attitudes toward experimentation and failure.

If you live in a society in which failing is a really harmful thing (...) that’s not good for creativity, is it?, that’s not good for entrepreneurship. (...) how would you rate Guatemala on that scale? If the culture needs to be changed, what can be done to change it?”

Finally, Peter explains how creating clusters with people in the same industry as you, can be a powerful strategy to grow your social network and get fresh ideas. Don’t miss his final takeaways to improve your possibilities of success in entrepreneurship.


Economist, professor and researcher



Universidad Francisco Marroquín