Economics & Sociology

The paper focuses on researching the role of social networking in the development of startup companies in the Czech Republic. The goal is to identify key groups that help startups to set up and develop, identify areas where startups get help through the social networks of their founders and/or key members, and analyze the relationship between the types of the contacts and help provided. The paper presents the results of a deep questionnaire survey of startup founders from 51 out of approximately 1450 startups in the Czech Republic. IBM SPSS Statistics 21 software and Fisher's exact test were used in two-dimensional data analysis at the significance level of 0.05 and 0.01. The results demonstrate the use of strong and weak ties in the establishment and development of a startup business. Key groups include business partners and friends, both in terms of their utilization rates, their key role and the amount of assistance provided, and business angels in terms of fundraising, and technology and marketing advice. The importance of some weak ties does not correspond to their use (both positively and negatively). The results of the survey showed the contradictory role of incubators and accelerators. While 63% of startups used the help of business incubators, the support for building networks and links with the external environment in the incubators seems to be underestimated. Our results imply that the support programs for the startups should include the networking programs with the external parties.

1. Adler, P. S., & Kwon, S. W. (2002). Social capital: Prospects for a new concept. The Academy of Management Review, 27(1), 17-40. doi: 10.2307/4134367

2. Adlešič, R. V., & Slavec, A. (2012). Social capital and business incubators performance: Testing the structural model. Economic and Business Review, 14(3), 201-222.

3. Aldrich, H., & Zimmer, C. (1986). Entrepreneurship through social networks. In: Sexton, D. L., & Smilor, R. W. (Eds.). The Art and Science of Entrepreneurship, Cambridge: Ballinger Publishing Company, 3-23.

4. Alvedalen, J., & Boschma, R. (2017). A critical review of entrepreneurial ecosystems research: towards a future research agenda. European Planning Studies, 25(6), 887-903. doi: 10.1080/09654313.2017.1299694

5. Andersson, S., & Wictor, I. (2003). Innovative internationalisation in new firms: Born globals – the Swedish case. Journal of International Entrepreneurship, 1(3), 249-275. doi: 10.1023/A:1024110806241

6. Atomico (2018). The State of European Tech 2018. London: Atomico. Retrieved January 8, 2019, from https://2018.stateofeuropeantech.com/chapter/state-european-tech-2018/

7. Beauchamp, M., & Skala, A. (2017). Visegrad Startup Report 2016/2017. Retrieved January 3, 2018, from https://s3.eu-central-1.amazonaws.com/uploads.mangoweb.org/shared-prod/aspeninstitutece.org/uploads/2017/06/Visegrad-Startup-Report-5.pdf

8. Blank, S., & Dorf, B. (2012). The Startup owner's manual: The step-by-step guide for building a great company. Pescadero: K & S Ranch.

9. Capaldo, G., Fontes, M., Cannavacciuolo, L., Rippa, P., & Sousa, C. (2015). Networks mobilized to access key resources at early stages of biotech firms: A comparative analysis in two moderately innovative countries. European Planning Studies, 23(7), 1381-

10. Cepel, M., Stasiukynas, A., Kotaskova, A., & Dvorsky, J. (2018). Business environment quality index in the SME segment. Journal of Competitiveness, 10(2), 21-40. doi: 10.7441/joc.2018.02.02

11. Coviello, N. E., & Munro, H. J. (1995). Growing the entrepreneurial firm: networking for international market development. European Journal of Marketing, 29(7), 49-61. doi: 10.1108/03090569510095008

12. Czechstartups.org (2018). Praha: CzechInvest, Retrieved January 5, 2019, from http://www.czechstartups.org

13. Dee, N., Gill, D., Weinberg, C., & McTavish, S. (2015). Startup Support Programmes. What´s the Difference?. Nesta, February 2015. Retrieved March 27, 2019, from https://media.nesta.org.uk/documents/whats_the_diff_wv.pdf

14. Elfring, T., & Hulsink, W. (2003). Networks in Entrepreneurship: The Case of High-technology Firms. Small Business Economics, 21(4), 409-422. doi: 10.1023/A:1026180418357

15. Elfring, T., & Hulsink, W. (2007). Networking by Entrepreneurs: Patterns of Tie—Formation in Emerging Organizations. Organization Studies, 28(12), 1849–1872. doi: 10.1177/0170840607078719

16. Eveleens, C. P., van Rijnsoever, F. J., & Niesten, E. M. M. I. (2017). How network-based incubation helps start-up performance: a systematic review against the background of management theories. The Journal of Technology Transfer, 42(3), 676-713. doi: 10.

17. Evers, N., & O´Gorman, C. (2011). Improvised Internationalization in New Ventures: The Role of Prior Knowledge and Networks. Entrepreneurship & Regional Development, 23(7-8), 549-574. doi: 10.1080/08985621003690299

18. Fairlie, R. W., Morelix, A., Reedy, E. J., & Russell, J. (2015). The Kauffman index 2015: StartupActivity / National trends. Ewing Marion Kauffman Foundation. Retrieved March 2, 2019, from https://www.kauffman.org/~/media/kauffman_org/research%20reports%2

19. Galkina, T., & Kock, S. (2011). The influence of entrepreneurial infrastructure on entrepreneur networking: a comparative case study of Russian and Finnish founding teams. International Journal of Entrepreneurship and Small Business, 13(3), 238-254. doi:

20. Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380.

21. Greve, A. (1995). Networks and entrepreneurship – an analysis of social relations, occupational background, and use of contacts during the establishment process. Scandinavian Journal of Management, 11(1), 1-24.

22. Hansen, M. T., Chesbrough, H., Sull, D., & Nohria, N. (2000). Networked incubators. Hothouses of the new economy. Harvard Business Review, 78(5), 74-84.

23. Hendl, J. (2012). Přehled statistických metod: analýza a metaanalýza dat. Praha: Portál.

24. Hoang, H., & Antoncic, B. (2003). Network-based research in entrepreneurship: A critical review. Journal of Business Venturing, 18(2), 165-187. doi: 10.1016/S0883-9026(02)00081-2

25. Hoang, H., & Yi, A. (2015). Network-based research in entrepreneurship: a decade in review. Foundations in trends in entrepreneurship,11(1), 1-54. Hanover: now Publishers. doi: 10.1561/0300000052

26. Hrtúsová, T., & Novák, R. (2017). Start-upy v ČR: State of Play. EU office / Knowledge Centre, Česká spořitelna. Retrieved January 8, 2019, from https://www.investicniweb.cz/Files/startupy-v-cr/

27. Ivanová, E., & Čepel M. (2018). The Impact of Innovation Performance on the Competitiveness of the Visegrad 4 Countries. Journal of Competitiveness, 10(1), 54-72. doi: 10.7441/joc.2018.01.04

28. Johannisson, B. (1998). Personal networks in emerging knowledge-based firms: spatial and functional patterns. Entrepreneurship & Regional Development, 10(4), 297-312. doi: 10.1080/08985629800000017

29. Keiretsu Forum (2018). Startup Report 2017/2018. Prague: Keiretsu Forum Prague SE.

30. Kenny, B., & Fahy, J. (2013). The Role of Tie Strength, Relational Capability and Trust in the International Performance of High Tech SMEs. IMP Journal, 7(3), 188-203.

31. Ključnikov, A., Kozubíková, L., & Sopková, G. (2017). The Payment Discipline of Small and Medium-sized Enterprises. Journal of Competitiveness, Vol. 9, Issue 2, pp. 45-61. doi: 10.7441/joc.2017.02.04

32. Klyver, K., & Hindle, K. (2007). The Role of Social Networks At Different Stages of Business Formation. Small Business Research, 15(1), 22-38. doi: 10.1080/13215906.2007.11005830

33. Kollmann, T., Hensellek, S., & Kensbock, J. (2016). European Startup Monitor 2016. German Startups Association. Retrieved January 3, 2017, from http://europeanstartupmonitor.com/fileadmin/esm_2016/report/ESM_2016.pdf

34. Kotha, R., & George, G. (2012). Friends, Family, or Fools: Entrepreneur Experience and its Implications for Equity Distribution and Resource Mobilization. Journal of Business Venturing, 27(5), 525-543. doi: 10.1016/j.jbusvent.2012.02.001

35. Krejčí, J. (2010). Approaching Quality in Survey Research: Towards a Comprehensive Perspective. Sociologický Časopis / Czech Sociological Review, 46(6), 1011-1033. Retrieved December 12, 2018 from http://www.jstor.org/stable/41132928

36. Lechner, Ch., & Dowling, M. (2003). Firm networks: external relationships as sources for the growth and competitiveness of entrepreneurial firms. Entrepreneurship & Regional Development, 15(1), 1-26. doi: 10.1080/08985620210159220

37. Lin, D., Wood, L. Ch., & Lu, Q. (2012). Improving business incubator service performance in China: the role of networking resources and capabilities. The Service Industries Journal, 32(13), 2091-2114. doi: 10.1080/02642069.2011.582498

38. Lukeš, M., Zouhar, J., Jakl, M., & Očko, P. (2013). Faktory ovlivňující vstup do podnikání: začínající podnikatelé v České republice. Politická ekonomie, 61(2), 229-247. doi: 10.18267/j.polek.896

39. Maurer, I., & Ebers, M. (2006). Dynamics of Social Capital and Their Performance Implications: Lessons from Biotechnology Start-ups. Administrative Science Quarterly, 51(2), 262-292. doi: 10.2189/asqu.51.2.262

40. Michl, P. (2018). Google spouští portál Startup with Google v češtině. Chce, aby díky němu vznikalo víc startupů i mimo Prahu. Marketing Journal, June 25, 2018. Retrieved January 5, 2019, from https://www.m-journal.cz/cs/aktuality/google-spousti-portal-st

41. Mønsted, M. (2010). Networking and Entrepreneurship in Small High-Tech European Firms: An Empirical Study. International Journal of Management, 27(1), 16-30.

42. Partanen, J., Chetty, S. K., & Rajala, A. (2014). Innovation Types and Network Relationships. Entrepreneurship: Theory and Practice, 38(5), 1027-1055. doi: 10.1111/j.1540-6520.2011.00474.x

43. Pettersen, I. B., & Tobiassen, A. E. (2012). Are born globals really born globals? The case of academic spin-offs with long development periods. Journal of International Entrepreneurship, 10(2), 117-141. doi: 10.1007/s10843-012-0086-5

44. Rasmussen, E., Mosey, S., & Wright, M. (2015). The transformation of network ties to develop entrepreneurial competencies for university spin-offs. Entrepreneurship & Regional Development, 27(7-8), 430-457. doi: 10.1080/08985626.2015.1070536

45. Ries, E. (2011). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to Create Radically Successful Businesses. New York: Crown Business.

46. Romijn, H., & Albu, M. (2002). Innovation, Networking and Proximity: Lessons from Small High Technology Firms in the UK. Regional Studies, 36(1), 81-86. doi: 10.1080/00343400120099889

47. Salido, E., Sabás, M., & Freixas, P. (2013). The accelerator and incubator ecosystem in Europe. Brussel: European Commission, Telefónica. Retrieved January 8, 2019, from https://lisboncouncil.net/component/downloads/?id=897

48. Semrau, T., & Werner, A. (2014). How Exactly Do Network Relationships Pay Off? The Effects of Network Size and Relationship Quality on Access to Start-Up Resources. Entrepreneurship: Theory and Practice, 38(3), 501-525. doi: 10.1111/etap.12011

49. Shaw, E. (2006). Small Firm Networking: An Insight into Contents and Motivating Factors. International Small Business Journal, 24(1), 5-29. doi: 10.1177/0266242606059777

50. Shirokova, G., & McDougall-Covin, P. (2012). The role of social networks and institutions in the internationalization of Russian entrepreneurial firms: Do they matter?. Journal of International Entrepreneurship, 10(3), 177-199. doi: 10.1007/s10843-012-009

51. Schwab, K., & World Economic Forum (2018). The Global Competitiveness Report 2018. Geneve: World Ecomomic Forum. Retrieved January 8, 2019, from https://www.weforum.org/reports/the-global-competitveness-report-2018

52. Sigfusson, T., & Harris, S. (2012). The relationship formation paths of international entrepreneurs. Journal of International Entrepreneurship, 10(4), 325-349.

53. Slotte-Kock, S., & Coviello, N. (2010). Entrepreneurship Research on Network Processes: A Review and Ways Forward. Entrepreneurship: Theory and Practice, 34(1), 31-57. doi: 10.1111/j.1540-6520.2009.00311.x

54. Soukup, P., & Kočvarová, I. (2016). Velikost a reprezentativita výběrového souboru v kvantitativně orientovaném pedagogickém výzkumu. Pedagogická orientace, 26(3), 512-536. doi: 10.5817/PedOr2016-3-512

55. Startup Genome (2018). Global Startup Ecosystem Report 2018. Succeeding in the New Era of Technology. Startup Genome. Retrieved January 8, 2019, from https://startupgenome.com/reports/global-startup-ecosystem-report-2018

56. StartupJobs (2018). StartupJobs - Startup Report 2017. Startupedia. Retrieved January 8, 2019, from https://www.startupjobs.cz/upload/press/startupjobs-startup-report-2017.pdf

57. Staszkiewicz, M., & Havlíková, D. (2016). České startupy 2016. Prague: Aspen Institute Prague. Retrieved January 3, 2018, from https://s3.eu-central-1.amazonaws.com/uploads.mangoweb.org/shared-prod/aspeninstitutece.org/uploads/images_upload/files/Ceske_st

58. Stuart, T. E., & Sorenson, O. (2005). Social Networks and Entrepreneurship. In: Alvarez, S. A., Agarwal, R., & Sorenson, O. (Eds.). Handbook of Entrepreneurship Research. New York: Springer, 233-252.

59. Stuart, T. E., & Sorenson, O. (2003). The geography of opportunity: spatial heterogeneity in founding rates and the performance of biotechnology firms. Research Policy, 32(2), 229-253. doi: 10.1016/S0048-7333(02)00098-7

60. Škarpová L., & Grosová S. (2015). The Application of Business Network Approach for Small and Medium Enterprises (SME) with regard to their Buying Behavior. Journal of Competitiveness, 7(3), 62-74. doi: 10.7441/joc.2015.03.05

61. Štalmach, D. (2018). Moravskoslezský kraj má málo inženýrů a vědců, zaostává v inovacích. IDnes.cz [online]. September 25, 2018. Retrieved January 5, 2019, from https://www.idnes.cz/ostrava/zpravy/inovace-veda-vyzkum-technicke-vzdelani-trh-prace-moravskos

62. Toman, P., & Kousalová, L. (2011). Státní podpora venture kapitálu v České republice. Journal of Competitiveness, 3(1), 116-130.

63. Tötterman, H., & Sten, J. (2005). Start-ups: Business Incubation and Social Capital. International Small Business Journal, 23(5), 487-511. doi: 10.1177/0266242605055909

64. Witt, P. (2004). Entrepreneurs´ networks and the success of start-ups, Entrepreneurship & Regional Development, 16(5), 391-412. doi: 10.1080/0898562042000188423

65. Witt, P., Schroeter, A., & Merz, Ch. (2008). Entrepreneurial resource acquisition via personal networks: an empirical study of German start-ups. Service Industries Journal, 28(7), 953-971. doi: 10.1080/02642060701846846