Conceptualising entrepreneurial capital for a study of performance in small professional service firms

Abstract

Purpose of this paperThe purpose of this paper is to develop a robust theoretical framework for exploring the longitudinal impact of social capital on the performance of small business service firms. Design/methodology/approachThis conceptual paper builds upon theories of capital, particularly entrepreneurial capital, to develop a theoretically robust framework within which to consider the longitudinal impact of social capital on small business service firms. FindingsReviewing the current literature on entrepreneurial capital demonstrates the difficulty in isolating capital in its various forms due to the convertibility and overlapping nature of different types of capital. Also problematic is the issue of the impact of time and the effect which changing amounts and types of capital can have on firm performance. The conceptual model proposed addresses these concerns by exploring social capital in a sector where financial capital presents less of a barrier to entry and where owners' human capital, particularly their educational achievement, is broadly similar. To capture process-based data, three key stages in the entrepreneurship process are explored: nascent, start-up and established. Practical implicationUnderstanding the changing structure and relational aspects of social capital over time and its impact on performance will assist small business owners in utilising their relationships more effectively. Although this study focuses on small professional service firms it may also be applicable to other sectors, or be used in replicated studies with other professions. What is original/value of paperThe conceptual framework proposed recognises the overlapping and convertible nature of different forms of capital. Further it recognises the fluctuating nature of entrepreneurial capital over time and the different outcomes which can emerge from social capital.

Integrating entrepreneurship with urban and neighbourhood studies: lessons for future research

“…Entrepreneurial processes are therefore about the mobilisation of and access to resources (Garnsey et al 2006;Stringfellow and Shaw 2009). The household, the family, the individual and the business community are the most relevant objects for studying resource access and mobilisation in management and entrepreneurship studies.…”

“…Entrepreneurship researchers have increasingly made use of 'entrepreneurial capital' as a conceptual framework to study business performance and success (Stringfellow and Shaw 2009). Essentially, the mix of different forms of capital and their interactions, changes and conversions over time are the research focus rather than just social networks or social capital (Firkin 2001(Firkin , 2003.…”

Understanding the drivers of sustainable entrepreneurial practices in Pakistan’s leather industry

“…LWG provides guidelines for continued environmental improvement and gives awards to confirm that a tannery is environmentally compliant. Tanneries that consider themselves more progressive strive to win such awards in order to develop their symbolic capital (Fuller and Tian, 2006;Gergs, 2003;Shaw et al, 2008;Stringfellow and Shaw, 2009) Tanneries use a number of different chemicals for processing leather. Of these, some are regarded as carcinogenic and their use is banned.…”

“…Developing better reputation equates with building symbolic capital, which is about how one is valued by others, such as the honour and prestige that a person or firm possesses (Fuller and Tian, 2006;Shaw et al, 2008;Stringfellow and Shaw, 2009). Since symbolic capital can be converted into economic capital through entrepreneurial initiatives (Gergs, 2003), environmentally pro-active SMEs may strive to build their reputation as environmentally responsible businesses through adopting eco-friendly practices, allowing them to attract more customers and augment their sales (Fuller and Tian, 2006).…”

Boundary work and tax regulation: A Bourdieusian view

“…On the one hand, this may be construed as a failure of entrepreneurial clients to share their part of the tax burden of society. On the other hand, Stringfellow and Shaw (2009) observe the wider societal importance of entrepreneurial capital, especially in the case of small professional service firms relevant to this paper. Such perspectives highlight the importance SME sector to the national economy in terms of providing employment, generating profits and creating wealth -all of which generate tax revenue.…”