The Role of Social Networks in the Creation and Development of Business among African Immigrants in Madrid Area (Spain)

Abstract

AbstractSocial networks provide entrepreneurs with opportunities to gain information from a wide variety of sources, to get capital, to test idea of business, to gain moral and material support, and to get talents for the venture. Immigrants use their social networks as a strategy to maximize their opportunities of integration and success in the host country. This study explores the impact of social networks on African immigrants business creation and growth in Madrid area (Spain). A survey was conducted among 200 African immigrant entrepreneurs in Madrid area, using faceto-face interviews by mean of a questionnaire. The findings indicate that more than 75 per cent of African immigrant entrepreneurs interviewed decided to go abroad for Political instability in their home country and for economic reasons. Moreover, this study shows that the social networks play an important role in African immigrants for the start up and development of business. Family, friends and ethnic ties are among the largest part of the social networks where African entrepreneurs find the main resources they need to run their business. African entrepreneurs value the positive role of cultural factors in their success. Practical implications and recommendations for future researches are discussed.