Analysis of the Effects of Social Networks on Entrepreneurial Opportunity Identification

In this study the effects of social networks on entrepreneurial opportunity identification has been analyzed. To do so, necessary information was collected via questionnaires from top entrepreneurs and was analyzed. For external validation of the questionnaire, Cronbach alpha method was used. Results show that the three sources of social information and informal networks, mentors, and professional communities have a positive impact on identifying entrepreneurial opportunities. Also, the three variable of personal efficacy, information processing ability, and entrepreneur quotient affect the relation between social networks and opportunity identification. The relation of personal efficacy is negative, and those of information processing ability are positive. According to the results of path analysis techniques, the modifying effect of the three variables of personal efficacy, information processing ability, and entrepreneur quotient on the relation between social networks and opportunity identification is produced through the variable of "participation in professional communities", and they have no effect on the relation between the informal networks and trainers (consultants) with opportunity finding.