"Entrepreneurs who start out with connections to an inner circle are all but destined to gain the right opportunities to achieve success. They might have graduated from elite universities or reside in hot-spot startup hubs like Silicon Valley, New York City, or Austin. They're plugged into networks that carry influence and can accelerate advancement in business and career. Research shows that these connections offer a ready-made competitive advantage-access to venture capital, business leaders, distinguished faculty and alumni, inside knowledge, and invaluable resources."
"Without proximity to these prestigious networks, they're left to compete at a distinct disadvantage. At issue here is a concept called network centrality. The more centrally located an entrepreneur is within a web of influential contacts, the greater the access to social capital and other valuable resources. And, of course, vice versa, reinforcing the disparity for those in peripheral locations."
Network centrality determines access to social capital, mentors, venture funding, inside knowledge, and institutional resources. Entrepreneurs with connections to elite universities or startup hubs like Silicon Valley, New York, or Austin gain a sizable competitive advantage. Entrepreneurs from underrepresented backgrounds, minority communities, or regions distant from power centers face distinct disadvantages due to peripheral network positions. Closing the gap requires identifying mechanisms that equalize access regardless of college pedigree, household income, or ethnic background. A comparative survey of 250 community college and 250 private college students who aimed for entrepreneurship examined differences in networking behaviors and centrality to understand pathways to equal opportunity.
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