Entering and developing a service network

Purpose – This paper seeks to investigate the role of social capital in facilitating the entry of new business ventures into service networks. Design/methodology/approach – The empirical work is undertaken via case study‐based research, featuring three service businesses, each entering and operating in a different marketplace. Findings – Results show that new service businesses are not necessarily able to draw on existing social capital in order to enter a business network and build relationships with potential customers and suppliers. Research limitations/implications – Future empirical work should re‐examine the distinctions between the role and nature of social capital for new service businesses. Practical implications – The paper suggests how the new service entrepreneur might invest personal resources in networking to initiate relationships and build a network of customers and suppliers. Originality/value – The paper presents the little researched area of networking and relationship initiation as a means of developing social capital for new service businesses.