Social capital and business venture: entrepreneurship in the ICT industry

Abstract

Globalization, in its present form, has evolved as a result of the concurrence of changes in multiple spheres. However, one development without which globalization would have never been able to reach its current state is the discoveries in the area of information and communication technology (ICT) leading to the virtual reduction in the size of the world. Indispensability of ICT in the operation of many other industries has made ICT an industry by its own right. This development has opened a floodgate of opportunity which has motivated many entrepreneurs to start business ventures in this fast growing area. Being essentially based on new stock of knowledge, entry into the ICT industry is open only to entrepreneurs who enjoy the advantage of possessing requisite knowledge of the new technology and/or about relevant business process. It is understandable that such entrepreneurs would include both individuals who have a family background in business and those who have no such background. Theoretically, people belonging to the first category should be in an advantageous position, as they would be capable of receiving family’s support and/or guidance in various aspects related to business. Despite all such advantages enjoyed by individuals coming from business families, many individuals who have no family background in business are very much visible in the ICT industry as well-established entrepreneurs. Due to various advantages, ICT is one industry with plenty of scope still for the emergence of new entrepreneurs. However, this does not imply that any new entrepreneur would manage to survive in this industry. Research testifies that in any industry, not all entrepreneurs who start their business ventures succeed in surviving; in fact, many leave the industry. It may be assumed that this common rule would apply to the ICT industry as well. This leads to our broad research problem: what is the background of the entrepreneurs who have managed to survive in the ICT industry, and what has helped only some entrepreneurs to survive in the ICT industry? Considering the indispensability of building effective interpersonal relationships for developing business ventures it appears that the concept of ‘social capital’ would be a sensitizing tool in exploring this research problem.