Study On Social Capital Of Entrepreneurs Based On Enterprise Lifecycle

As the logical beginning of enterprise occurring from, it is obvious thatentrepreneur has decisive function in the enterprise growth process. But alreadyexisted research about the relations between entrepreneur and enterprise mainlystresses the entrepreneur function, and pay no attention to the vital role ofentrepreneur social capital in the enterprise growth process..In recent years, alongwith the huge change of the global competition pattem and the traditional economygrowth pattern, the industrial colony, strategic alliance, information technology, andregion economy have had full scale development. Their developmentcomprehensively broke through the traditional competition pattern. Under the newcompetition environment, the old enterprises competition pattern has evolved intothe resistance and cooperation between the enterprises network. Along with thetransformation of enterprise environment and organizational structure, the popularityof team work way, and the appearance of network competition, more and moreresearchers notice that the process of entrepreneur's interaction with the other people,as well as with the environment has close influence with enterprise's development.Enterprise's growth is more and more decided by the social network and socialrelations which the entrepreneur constructed. The entrepreneur social capitalbecomes a new angle of view to understand enterprise growth question.At the end of 1980s, the enterprise life cycle theory matured, it has promulgatedthe overall tendency of enterprise growth. It is helpful to the system research ofenterprise growth question. This article embarks from the enterprise life cycle, putsthe entrepreneur social capital into each stage of life cycle to look dynamically theentrepreneur social capital's different function. This not only help to correctlyunderstand the function of entrepreneur social capital, instruct the enterprisemanagement decision-making in the practice, simultaneously has also led theentrepreneur social capital theory, entrepreneur theory and the enterprise life cycletheory innovation. This article altogether divides into six parts. The first part, briefly introduces theresearch background, the research goal, the significance, this question researchpresent situation, this article research frame and the innovation point. The secondpart separately elaborated the social capital theory and the entrepreneur social capitaltheory, reviewed the entrepreneur social capital thought production, has limited theentrepreneur social capital concept, and has differentiated the entrepreneur socialcapital and the enterprise social capital. The third part introduced the development ofenterprise life cycle theory, has introduced the enterprise life cycle model, andelaborated the characteristic of various life cycle stages. The fourth part is key pointof this article. It carries on the detailed elaboration of the function of entrepreneursocial capital in the various stages of enterprise lifecycle. In newly established periodentrepreneur social capital lead enterprise's survival and growth. The entrepreneursocial capital can help the enterprise to gain the opportunity, reduce transaction cost,provide fund guarantee. In the growing period, the function of entrepreneur socialcapital is to gain the growth opportunity, provide growth power, and avoids themanagement risk. In the mature period, along with resources restraint relieving, theentrepreneur social capital is more importantly to promote the action of enterpriseorganizational and technical innovation. Organization's adjustment and technicalrenewal can promote enterprise's continuous growth. In the declining period, thefunction of entrepreneur social capital is mainly through extending, constructing theentrepreneur social relations network, gaining crucial resources information to helpthe enterprise to transform successfully, remodel the enterprise culture, safeguard thesuccess of transformations. On the foundation of the analysis of the crucial functionthat entrepreneur social capital has in various enterprise life cycle stages, the fifthpart proposed the concrete suggestion, from three angles that were the entrepreneurselves, the government and the society. These suggestions provided a beneficialreference for cultivating entrepreneur social capital and promoting the enterprise todevelop continually.This article puts the entrepreneur social capital to the enterprise entire life cycleand explores its function to the enterprise growth. It has bought in the already research results about entrepreneur theory, social capital theory and the enterpriselifecycle theory, made them to become a significant union, has developed a newresearch area in theirs junction sink place.