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2. The influence of network and social capital on financing an Entrepreneurial Venture
Financing an entrepreneurial Venture plays a significant part in telling the successful degree of entrepreneurship. Entrepreneurial fiancé decides the entrepreneurial development. (Aldrich and Zimmer, 1986) In order to bring in more money for entrepreneurial action, financing an entrepreneurial venture becomes more and more important. The methods to finance an entrepreneurial venture incorporate bank load, venture investment, private capital, mortgage financing and finance lease. However, in the process of financing an entrepreneurial venture, the main financing resource is from the social networks of entrepreneurs. Yuli Zhang and Ju Yang discover that the financing channels of successful entrepreneurs are inclined to choose to bring finance resources through network. (Zhang and Yang, 2003) According to Global Entrepreneurship Monitor report shows:
49.4% of the external finance resources come from family members, 26.4% of the finance resources come form friends and friendly neighborhoods, 7.9% of the finance resources derive from colleges, and only 6.9% comes form strangers. Shame and Gable make a research about the relationship between investors and entrepreneurs. In their research, it shows that entrepreneurs who have a closely social relationship are more easily to make reasonable on financing decision.(Shame and Gable,2003). They also contend that investors are easily inclined to invest entrepreneurs who have a direct and closer relationship with them. If the entrepreneurial organization has already built up good relationship with the third party of investors, it seems to be more easily for entrepreneurs to get the external financing resources. For example, Rose, who was the creator of the Barbie Doll, was an owner of Arts Corporation. However, the money to build up the corporation not just from she and her husband’s own treasure, most of them are from her families and good friends. The reason of her family and friends were willing to offer finance resources for Rose was because they know Rose very deeply and believed her could make money. The case shows that entrepreneurs’ social network is very important for entrepreneurs. And it is shows in below two aspects.
 
2.1. The influence of social capital and network on financing channel
Effective expanding the financing channel is hot topic for government policy and research study. More and more entrepreneurial activity shows that the social capital of entrepreneurs is the most important factor during the entrepreneurial activity. (Hills, Lumpkin and Singh, 2003) In other words, the social capital of entrepreneurs decisively influences the entrepreneurial financing resources. The content of social network decisively influences the entrepreneurs’ direction to seek for help. When entrepreneurs have the strongest relative network, they are inclined to seek for help from relatives. Just like Rose case, she brought in mostly finance resources from her families and good friends. When entrepreneurs have perfect networks including financing organization and other investment organizations, they are more inclined to seek for help from those organizations rather than relatives.
 
Because of the lack of credit brand degree, entrepreneurs are always getting trap in having difficulty in bringing in financing resources 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。