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  • 1. International Conference on Technology and Business Management March 26-28, 2012 How Does The Social Networking Affect New Entrepreneurial Ventures In UAE? Hadeeqa Batool Shoaib Riaz Hadeeqa.batool@live.com Shoaib@szabist.ac.ae 1. IntroductionThere is great amount of change and uncertainty in the world of employment, the concept of lifelong employmenthas vanished (Fallows and Steven, 2000). Thus, there is a need in every individual to look for a better option.People are taking interest in self-employment as this ensures them a safer future (Jackson and Vitberg, 1987 cited inScott and Twomey, 1988). Thus, in modern era entrepreneurship holds a very strong scope. Word entrepreneurshipcan be approached (understood) in many different ways (Wennekers and Thurik, 1999). It is a phenomenon that isstudied in all major disciplines ranging from organizational theory to sociology, mathematics to economics(Henrekson 2007). The concept of entrepreneurship received a lot of attention and has become very popular in themodern era (Davidsson and wiklund, 2000; Low, 2001; Shane and Venkataraman, 2000; Venkataraman, 1997).Thus, regardless of being a new phenomenon, it holds a strong impact on development of individual as well aseconomy and nation (Zelealem et al, 2004). Entrepreneurship is a key to innovation (Kirzner, 1973), creativity andeconomical stability for nations (Thurik and Wennekers, 2009).Networking and EntrepreneurshipNetworking and communication are considered to be most essential element in entrepreneurial activity (Martin, G.and Staines, H., 1994). The ability of developing networks rests with the efforts of entrepreneur/owner towardsfulfillment of the strategic vision of reaching global markets. This demands deep commitment and nurturing effortfrom the entrepreneur and allows the firm to exploit opportunities of internationalization (Hayes et al., 1996).Montealegre (2002) believes that building networks are a process that is established overtime. Key to be a successfulentrepreneur in UAE lies in the secret of social networking. UAE government also supports social networking andhas established several channels for entrepreneurs to develop their networks. As being a diverse society, UAE holdsa number of different social networks. Thus, the chances of successful entrepreneurial activity are high here.Developing social network is an activity of increasing social, personal and business contacts of an entrepreneur.(Castilla, Hokyu, Granovetter, & Granovetter, 2000). Researchers identified that social network can be physical orvirtual resources. Their main aim of building social structure is to fulfill the needs of entrepreneurs (Gabbay &Leenders, 1999). Entrepreneurs build these relations by contacting the people they know or by contacting the peoplewho are known by his contacts (Portes, 1999; Lin, 1999). These network relations in terms of people may includecontacts and links from family (Krackhardt, 1992), friends, colleges and other professional networks. Fromorganizations point of view, the network may include clusters of organizations/ firms known and other organizationsthat can help the entrepreneurial activity to start and function smoothly (Hansen, 1995). Thus, when theentrepreneurs receive any sort of contributions from these built contracts, these social networks becomes socialcapital (Burt, 1992). 2. Background to research problem/ research problemThe major hindrance in economic stability of a nation is economic downturn or recession. It is a time that createscomplications for the people, organizations and the nations. Talking about how entrepreneurship is affected inUAE‘s market, we see that after the real estate burst, UAE is trying to become entrepreneurial hub and has madeseveral successful efforts in past namely Dubai Media City, Dubai Internet city etc. thus, entrepreneurship still holda very strong future in UAE in upcoming days (Kartik, 2010). Researchers believe that there are a numbers ofdifficulties that an entrepreneurial activity may face such as, Lack of Management skills (Martin and Staines, 1994) ~1~
  • 2. International Conference on Technology and Business Management March 26-28, 2012or lack of financial support (Boer, 1992). However, an escape to these short comes can be by developing networkrelationships (Dubini and Aldrich, 1991; Coviello and McAuley, 1999; Johannisson and Monsted, 1997).Entrepreneurship is not an easy task. Entrepreneurs must know the right way of starting/ operating the venture.There are a huge number of small businesses those faced difficulties and fail in their initial years of operations(Watson and Everett, 1996; Ladzani and van Vuuren, 2002). To start a business, entrepreneurs require not only thecompetency, idea and knowledge but also the support to deliver the goods and services (Teece, 1987). They receivethis support by establishing social networks. These networks are the links with people and other firms that help theorganization in expanding the resource base and to sustain the new entrepreneurial activity (Hansen, 1995). Thisnetwork becomes social capital for entrepreneurs (Burt, 1992). Social network can be further divided into twocategories i.e. fundamental and secondary network. Fundamental network includes people and organizations thatentrepreneur know before starting entrepreneurial activity and secondary networks are the contacts that entrepreneurdevelops while the business grows and these networks help him in exploiting the market (Jay, W. & Gillian Mort,2006).Network differs with geography, level of contact and the depth of relationship. Entrepreneurs staring up a newbusiness are most likely to belong from a family of entrepreneur (Rosenblatt, et al., 1985). Majorly, the newentrepreneurs starting business are sons of a successful business man. Thus, this way, the family will influence thenetwork development as the new entrepreneur will have already guidance and pool of experience from his family(Dyer & Handler, 1994; Rosenblatt, et al., 1985; Aldrich, Reese, & Dubini, 1990). Whereas, some researchesnotified that this dependence can result in entrepreneur losing out on other contacts as he might not feel the need toenhance the network and exploit resources. Thus, the new entrepreneur should maintain a balance between thefamily contacts and the other contacts in such a way that his network does not get limited (Birley, 1985; Renzulli, etal2000). 3. Problem DefinitionHow social networking can help the entrepreneurs in starting a new business in UAE?Research Question:What is the link between developing social networks and starting new ventures?What can entrepreneur focus on to develop better social network?Research Objectives: To understand the importance of social networking in starting new entrepreneurial activity. To explore the effective way in which an entrepreneur can develop effective social capital. 4. Literature ReviewThis section will help to identify the relevant studies conducted on the topic of social networking and entrepreneurs.Entrepreneurs are of two kinds, one who work on networks for development of their entrepreneurial activity areknown as network entrepreneur and the others are entrepreneurs who work in isolation and does not requirenetworks, such entrepreneurs are called solo entrepreneurs. Researchers argued that entrepreneurs those utilize theirsocial network highly more successful than those who work in isolation (solo entrepreneurs) (Hills, Lumpkin, andSingh; 1997). The study of entrepreneurship greatly emphasizes on importance of building social networks as ithelps the entrepreneur in different phases of business establishment and plays a very crucial role in development ofbusiness (Borch, 1994; Hansen,1995; Kaufmann et al., 2003; Larson & Starr, 1993; Reynolds, 1991; Starr &MacMillan, 1990).Johannisson (1990) believes that developing social contacts is the most significant and important resource for anentrepreneur. Social capital of entrepreneurs is divided into personal contacts and professional contacts. Personalcontacts will include family members and friends. Professional contacts will include official contacts, colleaguesand business people that may come into contact because of the entrepreneurial activity. Social networking hasimportance for entrepreneurs in many ways. ~2~
  • 3. International Conference on Technology and Business Management March 26-28, 2012Furthermore, according to Wilken‘s (1979) three phase model of entrepreneurship, networking and social contactsholds importance and help entrepreneur in every phase of entrepreneurial activity. Motivation is the first phase; itconstitutes the initial phase when the entrepreneur is planning to start the venture. Second phase is planning, this isthe phase in which the entrepreneur knows what he wants to do and is further gathering information and resources toset up the venture (Carter, Gartner, & Reynolds, 1996). The third phase is known as establishment, this is the phasewhen the venture is running and entrepreneur‘s aim is to keep it going smoothly and further development ofbusiness. This phase concept was also supported by Katz &Gartner (1988). Moreover, Chu (1996) believes thatevery phase of entrepreneurship will demand different extent and level of networking behavior.Entrepreneurs who lack social circles and doesn‘t have a good network may feel that the business is not compatiblewith their expertise and thus may dropout from the venture or face a huge number of difficulties (Hamilton, 2000).Thus, networks are important in order to have smoother and profitable relations between the parties namely,entrepreneurs, suppliers, customers, investor and creditors etc.Idea GenerationDuring the first phase of entrepreneurial activity, the entrepreneur requires idea and shares his thoughts with closesocial network. This can include family and close friends as entrepreneur might not want to make their initial ideaspublic (Salancik & Pfeffer, 1978; Staw & Ross, 1987). Developing contacts and special network is important for anentrepreneur as it serves as main source of idea generation for new enterprise (Birley, 1985; Christensen & Peterson,1990) believes that establishing.Network can be beneficial in providing entrepreneurs with source of useful information (Aldrich and Zimmer,1986). Okkonen and Suhonen (2010) recognize that one of the most important positive impacts of social networkingfor an entrepreneur is the ease of information sharing and exchange of ideas. Thus, entrepreneurs have benefit ofexploring (knowing) relevant business experiences and information from its contacts and this information can behelpful for the future of the entrepreneur (Blau, 1977; Burt, 1992; Granovetter, 1973).Hypothesis 1:There is a positive correlation between the availability of social network and the idea generation.Increased Efficiency of Business OperationsAs entrepreneurs face a huge number of problems and hardship in terms of financing, technical and managerialexpertise especially during the startup phase, social contacts help an entrepreneur in overcoming these problems to asufficient extent (Raijman and Tienda, 2000).Most of the small and medium firms fail due to unavailability of sufficient credit and financing facilities.Entrepreneurs can utilize their social contacts to achieve easy credit and financing facilities (Fredland and Morris,1976; Peterson and Shulman, 1987). In certain economies, getting licensing and meeting other legal formalities isalso a difficult task for new entrepreneurs (Djankov et al. 2002). Thus, personal contacts can also help in such case.Furthermore, contact relations can be diversify such as they may help in attaining investors, reaching suppliers,vendors and customers or they can be supplier/distributor of an entrepreneur‘s products or services (Hansen, 1995).For example, an entrepreneur starting venture of producing sports goods can be fortunate enough to know someonewho is already in business of supplying raw material of sports goods. Thus, entrepreneur can get benefit fromcontact i.e. he already knows the supplier. Moreover, in such cases, the new venture will be beneficial for both theparties as the entrepreneur‘s business is using supplies from supplier that is already known to entrepreneur, and theperson in supply business will get benefit of increased customer base.Thus, networks are important as they help the entrepreneurs in increasing efficiency of business operations. Forexample, in production process, the assembly of resources can be performed smoothly with help of effectivecontacts. Networks are beneficial in reducing the transaction cost (Mark et al., 1995). Also contacts are important asthey facilitate the entrepreneurs in provision of necessary resources (Aldrich and Zimmer, 1986). These resourcescan be monetary and non monetary. Mostly entrepreneurs rely on their family for provision of necessary resources(Krackhardt, 1992). For provision of information, generation of capital and for necessary guidance, entrepreneursrely on their social network and they keep on expanding their networks for future support (Burt, 1992). ~3~
  • 4. International Conference on Technology and Business Management March 26-28, 2012Hypothesis 2:There is a positive correlation between availability of social network and the increased efficiency of businessoperationsAvailability of appropriate HREntrepreneurs starting a new venture may not find it feasible to hire and train employees using traditional and highcost sources (Robert and Shane, 2008). The reason behind this is that at the start of new venture, entrepreneurs havelimited resources and the entrepreneur cannot afford to make a bad decision as the venture‘s success demandseffective utilization of resources (Venkatraman, 1997). And out of all resources possessed by an organization,human resources (people) are the most important factor that can act as competitive advantage for the enterprise(Dechawatanapaisal, 2005; Saru, 2007).Finding both talented and trustworthy employees is a difficult task for new entrepreneurs without help from reliablenetwork contacts (Amir N. & Siegel, 2006). Entrepreneurs utilize their network and contacts for hiring employees(Shane & Foo, 1999). This hiring can include people who are already known to the entrepreneurs (friends,colleagues, family members) or it may include recommendations from contacts (Hendricks, 1998). Hiring peoplethat you already know is beneficial for the entrepreneur in many ways such as this hiring method will be costeffective, quick, these individuals will be easy to handle and convince (Robert and Shane, 2008).Furthermore, researchers believe that new organizations often lack employee commitment and dedication(Stinchcombe, 1965) and such problems can be overcome when you are employing the people you know already (orthe people who are referred by your contacts).Hypothesis 3:There is a positive correlation between availability of social network and proper workforceGlobal presence and operationsIn the recent times, entrepreneurs take advantage of globalization. Studies have shown that during the startup phaseof global entry, entrepreneurs greatly rely on their personal contacts Robert D. Hisrich (2010). And only the physicalresources will not help internationalization process of entrepreneurship (Glückler. J., 2006). Researchers believe thatin the third phase of entrepreneurship, the establishment phase entrepreneurs try and expand their network toincrease the growth (Wilken‘s, 1979; Katz & Gartner, 1988). This expansion is mostly outside one country.The entrepreneurs expand their business to global markets to get the hidden advantages and benefits of foreigncountries (Robert D. Hisrich, 2010; Amy Bax, (n.d)), These benefits could be low cost of operating, labor and rawmaterials etc. foreign markets also offer entrepreneurs other motivation such as exploiting the global world,increasing their presence and thus global presence acts as competitive advantage for the venture.Entrepreneurs may achieve globalization of production by having raw materials from one source, assembly andmanufacturing from other source. This concept will benefit as it is cost effective. Furthermore, entrepreneurs canalso enjoy boundary less markets by using their contacts in other countries to increase their market. This concept isalso known as globalization of markets. For example, a huge number of entrepreneurs in UAE have expanded theirbusinesses to Canada, Japan etc by utilizing their personal and professional contacts.Amy Bax (n.d) believes that it is only because of the technology (internet) that social networking and contacts canbe expanded across borders. Now entrepreneurs can increase their social contacts and links by utilizing the fasterway of communication which is social networking sites and portals. Most prominent ones are facebook, Myspace,Linkdin, twitter etc. keeping in mind this endless advantage of technology, entrepreneurs may utilize this resource toexpand their businesses in potential markets globally.Hypothesis 4:There is a positive correlation between availability of social network and global presence of firm. ~4~
  • 5. International Conference on Technology and Business Management March 26-28, 2012Moral Support/Emotional support and FeedbackSocial capital of an entrepreneur can be helpful in several ways predominantly the following four ways (Brüderl &Preisendörfer, 1998: Powell & Smith-Doerr, 1994): 1. Social capital work as emotional capital and support the entrepreneurs morally and emotionally through the tough and critical times of venture. 2. Helps in gaining valuable information that is beneficial for the future of entrepreneurial activity. 3. It serves as the best and easiest way of gaining suppliers and customers. 4. It also opens easy ways and access to financial resources and physical resources those are required by the entrepreneurs during the startup phase.Researchers believe that the first years of an enterprise life requires the most emotional/moral support for theentrepreneur (Hugo et al., 2005). Before the starting of enterprise, the entrepreneur requires someone to share hisbusiness idea and concerns with. Thus, researchers argued that entrepreneurs use their close social network likefamily and friends to share his ideas and these social contacts will motivate him and provide him moral support(Salancik & Pfeffer, 1978; Staw & Ross, 1987). Furthermore, the social network mainly the close friends andfamily will also motivate the entrepreneur.Social circle of an entrepreneur supports him emotionally and this in turn helps in boosting entrepreneurs selfconfidence and thus he feels more comfortable and confident (Foxall, 1997; Johannisson, 1986, 1995). Male andfemale entrepreneurs may perceive the moral and emotional support executed by their social network in differentways as there exist gender differences which leads to role and perception differences. Self employed females notonly take the challenge of being an entrepreneur but also holds a set of family responsibilities. Thus, female‘sentrepreneurs require more of moral support from family (Mistick, 1998; Rouse and Kitching, 2004). Moral andemotional support executed by the network is not only beneficial for female entrepreneurs but also important formale entrepreneurs.Literature mentions that entrepreneurs who receive emotional support from their family and friends are highlyexpected to execute successful businesses than those entrepreneurs who lack emotional support and works inisolation (Brüderl & Preisendörfer, 1998). Thus, the support of social capital has a positive influence onentrepreneur as well as the venture. Researchers argue that social circles provide moral support and advice toentrepreneurs not only in the startup phase but throughout the journey of the venture (Birley, 1985; Greve, 1995).According to Kamm & Nurick, (1993), entrepreneurs hold an emotional bond with their networks. Goffee and Scase(1989) added that this emotional bond is more strong form the family side of the entrepreneur. Thus, entrepreneur‘ssocial network helps him to deal with the good and difficult situations throughout the journey.Hypothesis 5:There is a positive correlation between availability of social network and moral support, Feedback. 5. Research MethodologyThis section of the report presents the method used for conducting the research. It also highlights the researchdesign, data collection methods used, target population, the questionnaire development and the analysis of data.Research DesignThe main aim of this research was to indentify how social networks can help the entrepreneurs of UAE. Thus, theresearch is general and anyone can get benefit from the results generated by the research; therefore it was a basicresearch. As the idea of conducting this research was to know the power of efficient social networks and to help theentrepreneurs, therefore this research was descriptive and co relational in nature. The research was descriptive as theprofiles of respondents was developed and was analyzed by means of descriptive statistics. The research can also becharacterized as co relational research because positive or negative correlation between variables and socialnetworking were examined. ~5~
  • 6. International Conference on Technology and Business Management March 26-28, 2012Data Collection MethodQuestionnaire is the easy method of capturing human related information (Robson 1993). The research was based onprimary data collection approach i.e. data was collected first hand. Thus, surveys using self-report close-endedquestionnaires were conducted. Close ended questions were used as the coding was easier and lesser number ofproblems and errors were expected while conducting the data analysis. This questionnaire was distributed usingpersonal contacts among the SME entrepreneurs in UAE.In this research, the questionnaire was self-administered and had been answered by the respondents as per theirconvenience and collected by the researcher accordingly. The questionnaires were distributed via emails, personalvisits (face to face meeting with entrepreneurs by taking prior appointments) to the respondents. Respondents wereassured that their responses were kept private and were analyzed at the aggregate level only.The questionnaire (survey instrument) in this research was based on the Likert-style rating scale. Mutually exclusiverating scale was used i.e. users are given Statements and options to express their views. The options were likestrongly agree, agree, neutral, disagree, and strongly disagree. These descriptors are chosen to neutralize anytendency to over-report difficult conditions and to avoid confusion. This method was intended to ask respondents oneither they do, do not agree or sometimes agree to a given statement. The series of statements in the questionnairewere maintained in the same order of response in order to avoid confusion (Kervin, 1992) i.e. in the section ofdependent variables, every variable was assigned 3-6 questions. These questions were regarding the idea generation,next set of questions were regarding the increased efficiency of operations and so on. Negatively and positivelyworded statements were included interchangeably to ensure that respondent reads through the each statementcarefully and does not tick the each answer in the same way.Questionnaire DevelopmentThe pattern of questionnaire is important to ensure maximum response and user understanding (De Vaus, 1991). Thequestionnaire consists of eight pages. The first page describes brief about the research. The purpose of presenting thebrief is to address questions that might come in respondent‘s mind. And also it ensures the high rate of response(Dillman, 1978). From second page starts the section 1. This section is consisting of six questions on demographicinformation such as gender, age, nationality etc. The purpose of adding such questions is to get maximumknowledge about the respondents and this helps the researcher in understanding the level of respondents.From page number four to seven is the section 2. In this section, questions are based on the five ways how socialnetworking affects entrepreneurial ventures in UAE i.e. Idea generation, increased efficiency of operations,Availability of human resources, Global presence and operations, Moral/ Emotional support and feedback. There are4-5 questions asked regarding each variables. Thus, there are twenty one questions in section 2.The last section of questionnaire is section 3. It starts from seventh page and ends at page nine of the questionnaire.There are ten questions in section 3. These questions are based on the dependent variable i.e. importance of socialnetworks. The design of the questionnaire is appended in Appendix BThe Pre-Testing Of The QuestionnairePilot study was conducted to ensure the validity of the questionnaire. 10 conveniently selected entrepreneurs wereasked to fill in the questionnaire. The aim of conducting this activity was to identify any major ambiguity or flawthat might exist in the questionnaire. Also the questionnaire was sent to the advisor of thesis so that he can check ifany changes are needed.Target Population and SamplingSampling is the process of selecting a proportion from the population. It is used to firm a basis of drawingconclusions and generalizing results for the whole population. Mentioned below are the sampling technique andtarget population used for this research:Identifying target population and population frame ~6~
  • 7. International Conference on Technology and Business Management March 26-28, 2012Target population includes the group of population that is appropriate for research purpose. The target population forthis research was entrepreneurs and business owners operating in Dubai/UAE.Step2. SamplingKeeping in mind the sampling frame, convenient sampling was done. Non-probability convenient and snowballsampling was used. The respondents were selected based on contacts and links conveniently i.e. I contacted allentrepreneurs in my network and asked them to fill the questionnaire and whoever agreed to provide informationwas provided with questionnaire. Also the respondents were asked to refer any of other entrepreneurs that they mayknow. Thus it was snow ball sampling as well. The sample size for our research was 103 respondents.Step3. The processQuestionnaires were sent via email and also distributed manually to all the respondents and respondents wererequested to send back the soft copy/ submit filled questionnaire.3.5 Data AnalysisOnce all the questionnaires were filled, the data was analyzed using statistical tests. Statistical tests are done toprove the correlation between different variables and affect of one variable to other variable. This statistical analysiswas done using SPSS software that is commonly known as statistical package for social sciences.3.5.1 Reliability AnalysisReliability analysis deals with the extent to which measurements are repeated when different persons make themeasurements on different occasions. Reliability is determined by a statistical test called cronbach alpha. Cronbachalpha determines the reliability based on internal consistency. In this test, measures were considered reliable if theChronbach‘s coefficient alpha is 0.6 or greater. The value of Chronbachs alpha is mentioned shown separately foreach variable.3.5.2 Validity AnalysisValidity analysis is to check whether the information is perfectly represented and represented the way it actually wasneeded to be represented. There are many types of validity analysis and in this research the following methods areused.Content validity---content validity cannot be determined numerically. It is determined subjectively by the researcher.In this study, the content validity is checked by conducting a thorough review of literature available about theimportance of social networking for entrepreneurs. Furthermore, the original questionnaire was submitted to theresearch supervisor for review and necessary changes were made based upon supervisor‘s guidance. Also a pilotstudy was conducted before starting the actual research. 6. Data AnalysisIntroductionThis chapter is divided into three sections. The first section explains the general information and characteristics ofrespondents. In the second section a report is created on the data which is been collected for this study and the lastsection explains in detail the major outcomes of the research conducted. Furthermore, the results of analysis willalso be explained.Analysis of Respondent’s CharacteristicsThis analysis is done in order to have a clear view about the background of the respondents involved in this study.The demographic characteristics of respondents involved in the study were (a) gender (b) age (c) marital status (d)nationality (e) education (f) monthly revenue. (The detailed results of the demographic characteristics of therespondents are given in Appendix C) ~7~
  • 8. International Conference on Technology and Business Management March 26-28, 2012The data that was collected for the analysis was further explained by the description of respondent‘s characteristicsusing statistical tools such as percentage and frequency. The data collected with the help of questionnaires wasanalyzed and evaluated with the help of statistics software named as Statistical Package for Social Sciencescommonly known as SPSS.4.2.1 Demographics: 1. Gender Analysis:Out of the 103 responses analyzed; 74 respondents that constituted 71.8% of the total responses analyzed weremales, and the remaining 29 respondents that constituted 28.2% were females. 2. Age Analysis:Out of 103 respondents analyzed, 1 which constitutes 1% is below 20, 14 respondents which constitutes 13.6% arebetween 20 to 25 years, 15 respondents which constitutes 14.6% are between 26 to 30 years, 18 respondents whichconstitutes 17.5% are between 31 to 35, 22 respondents which constitutes 21.4% are between 36 to 40 years and 33respondents which constitutes 32% are above 40 years of age. 3. Marital Status Analysis:Out of 103 respondents, 26 respondents which constitute 25.2% are single and 77 respondents which constitute74.8% are married. 4. Nationality Analysis:Out of 103 respondents analyzed, 8 which constitutes 7.8% were UAE national, 22 which constitute 21.4% wereArab except UAE national, 20 respondents which constitutes 19.4% were Indian, 47 respondents which constitutes45.6% were Pakistanis and 6 respondents which constitutes 5.8% were others. 5. Education Analysis:Out of 103 respondents analyzed, 1 which constitute 1% were Doctorate, 31 which constitutes 30.1% were Masters,47 which constitutes 45.6% were Bachelors degree holders, 22 which constitutes 21.4% were Diploma holders and 2which constitutes 1.9% were certificate holders. 6. Monthly Revenue Analysis:Out of 103 respondents analyzed, 11 which constitute 10.7% were less than AED 10,000. 17 respondents whichconstitute 16.5% of the total were between AED 10,000 to AED 20,000. 24 respondents which constitute 23.3%were between AED 20,001 to AED 30,000. 20 respondents which constitute 19.4% were Between AED 30,001 toAED 40,000. 21 respondents which constitute 20.4% were Between AED 40,001 to AED 50,000, and 10respondents which constitutes 9.7% were above AED 50,000.Reliability AnalysisReliability analysis is conducted in order to know whether the questionnaire which was developed was appropriateor not for doing analysis. Reliability statistics is done to know whether no ambiguity was there, to know if thequestionnaire was distributed to appropriate respondents, the schematic diagram which shows the dependent andindependent variable was perfectly designed. Moreover it also helps us to know whether the research model isperfect.To do the reliability analysis, Cronbachs alpha is used for determining reliability based on internal consistency. IfCronbach‘s alpha is 0.6 or greater, then it is said that the measures which was taken in this study are reliable.Properties and Measuring InstrumentsFor reliability analysis, all the dependent variables were analyzed by using Chronbachs alpha coefficient. ~8~
  • 9. International Conference on Technology and Business Management March 26-28, 2012Reliability of Idea Generation:The data regarding Idea generation is found reliable as the value of cronbach‘s alpha is greater than 0.6Reliability of Increased efficiency of operationsThe data regarding increased efficiency of operations is reliable as the value of cronbach alpha is greater than 0.6Reliability of Availability of Proper HRThe data regarding availability of proper HR is found reliable as the value of cronbach alpha is greater than 0.Reliability of Global presence and operationsThe data regarding global presence and operations is reliable as the value of cronbach alpha is greater than 0.6Reliability of Moral support and FeedbackThe data regarding moral support and feedback is reliable as the value of cronbach alpha is greater than 0.6Correlation Between The Factors:Correlation is basically done to determine whether there is a relation between dependent and independent variableand to check whether the relation is accurate or not. Before correlating each variable it is very important that eachdependent and independent variable should be converted into singular form.The correlation analysis of this research shows that three variables possess correlation with the independent variablenamely, Increased efficiency of business operations, Global presence, Moral support and feedback. However, as thecoefficient of correlation is not high, positive correlation exists but it is not significant. Furthermore, the level ofconfidence on each variable was also examined.There is no correlation between idea generation and social networking for an entrepreneur. The second variable,increased efficiency of business operation has positive correlation and the confidence level is 97.5%. The thirdvariable, Availability of proper HR has no correlation with independent variable. Global presence is positivelycorrelated with independent variable and the confidence level is 98.5%. The last variable, moral support andfeedback is also positively correlated with independent variable and the confidence level is 99.7 ~9~
  • 10. International Conference on Technology and Business Management March 26-28, 2012Correlation Matrix: ~ 10 ~
  • 11. International Conference on Technology and Business Management March 26-28, 2012Summary of results: Hypothesis Relationship Status Hypothesis 1 No Correlation Hypothesis Not Accepted Hypothesis 2 Positive Correlation not very strong Hypothesis Accepted Hypothesis 3 No Correlation Hypothesis Not Accepted Hypothesis 4 Positive correlation not very strong Hypothesis Accepted Hypothesis 5 Positive correlation not very strong Hypothesis AcceptedHypothesis 1: There is a positive correlation between the availability of social network and the ideageneration.Based on the analysis of data, there is no correlation. Thus, hypothesis rejected.Hypothesis 2: There is a positive correlation between availability of social network and the increasedefficiency of business operations.Based on the analysis of data, there is positive correlation and confidence level is high. Thus, hypothesis accepted.Hypothesis 3: There is a positive correlation between availability of social network and proper workforce.Based on the analysis of data, there is no correlation. Thus, hypothesis rejected.Hypothesis 4: There is a positive correlation between availability of social network and global presence andoperations of firm.Based on the analysis of data, there is positive correlation and significance level is high. Thus, hypothesis accepted.Hypothesis 5: There is a positive correlation between availability of social network and moral support,Feedback.Based on the analysis of data, there is positive correlation and confidence level is high. Thus, hypothesis accepted. 7. Summary Suggestions and ConclusionLimitations and suggestionsThe limitations involved in this study affected the outcomes. First of all, the nature of research and the area―entrepreneurship and UAE‖ was itself very wide and new area of research. The focus of study was entrepreneursthat own SME business and there is no appropriate place where researchers can reach all of the entrepreneurs. Thus,getting large number of respondents was not an easy task. I tried my best to approach as many as I can, however, thesample size was not large enough thus, the variables does not display very strong coefficient of correlation. Anotherreason to this limitation was the limited time available to complete the study.Furthermore, another limitation could be that the questionnaire developed for this research was reviewed only by thesupervisor and not by peer group. Thus, if peer group was available, the flaws in the questionnaire could have beenrecognized and removed accordingly.Conclusion and suggestions for future researchers ~ 11 ~
  • 12. International Conference on Technology and Business Management March 26-28, 2012Entrepreneurship is the heart of business studies. It is a growing field and given sufficient attention, it can serve asmile stone in development of individuals as well as nations. In UAE, the government is now working towardsimprovements and is appreciating entrepreneurs to start ventures. However, considering UAE is a culturally andnationality wise diverse society, the government should introduce flexibility and should also support non localpopulation as well. This will be beneficial for UAE‘s future and will polish the image of UAE in the world.The social network of an entrepreneur can help him in overcoming the problems and issues of business. Thus,entrepreneurs should try to achieve maximum benefits out of their social circle, family and friends. The result ofthis study showed that 3 variables are accepted. This means that the entrepreneur‘s social network can actuallybenefit them in terms of Moral support and feedback, increasing efficiency of business operations and increasingtheir business to the global markets and getting the benefits of global markets.Furthermore, for future study on this topic, I would like to suggest the researchers that in order to achieve highervalidity, the questionnaire development and peer group review should be given prime importance. The sample sizeshould be increased so that better results are generated. Another direction for future research is that social networkof entrepreneurs can impact the entrepreneurs in many other different ways as well for example, Buzz marketing(word of mouth), beating competition with strong social networks, cost advantages with social ties, awareness ofmarket, reliable and safer business. REFERENCES Aldrich, H. and Zimmer, C., Entrepreneurship through social networks. In: R. Smilor and D. Sexton (Eds), The Art and Science of Entrepreneurship, pp. 3-23 (New York: Ballinger, 1986). Aldrich, H., Birley, S., Dubini, P., Greve, A., Johannisson, B., Reese, P. R., & Sakano, T. 1991. The generic entrepreneur? Insights from a multinational research project. Paper presented at the Babson Conference on Entrepreneurship. Amir N. Licht and Jordan I. Siegel, 2006. The Social Dimensions of Entrepreneurship. Mark Casson and Bernard Yeung, eds., Oxford Handbook of Entrepreneurship. Oxford: Oxford University Press, 2006., http://www.people.hbs.edu/jsiegel/SDE8_083105.pdf, (11/11/11) Amy Bax, (n.d), Social Marketing Optimization Importance of Social Networking, Web. http://www.gaebler.com/Importance-of-Social-Networking.htm, (18/11/11). Birley, S. 1985. The role of networks in the entrepreneurial process. Journal of Business Venturing, 1(1): 107-117. Blau, P. M. 1977. A macrosociological theory of social structure. American Journal of Sociology, 83(1): 26-54. Boer, A. (1992), ―The banking sector and small firm failure in the UK hotel and catering industry‖, International Journal of Contemporary Hospitality Management, Vol. 4 No. 2, pp. 13-6. Boer, A. (1992), ―The banking sector and small firm failure in the UK hotel and catering industry‖, International Journal of Contemporary Hospitality Management, Vol. 4 No. 2, pp. 13-6. Borch, O. J. 1994. The process of relational contracting: Developing trust-based strategic alliances among small business enterprises. In P. Shrivastava, A. Huff & J. Dutton (eds.), Advances in Strategic Management, 10B: 113-135. Burt, R. S. 1992. Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press. Carter, N. M., Gartner, W. B., & Reynolds, P. D. 1996. Exploring start-up event sequences. Journal of Business Venturing, 11(3): 151-166. Castilla, E. J., Hokyu, H., Granovetter, E., & Granovetter, M. (2000). Social networks in Silicon Valley. In C. M. Lee, W. F. Miller, M. G. Hancock, & H. S. Rower (Eds), The Silicon Valley edge: A habitat for innovation and entrepreneurship (pp. 218–247). Stanford, CA: Stanford University Press. Christensen, P.S., & Peterson, R. (1990). ―Opportunity Identification: Mapping the Sources of New Venture Ideas.‖ Paper presented at the 10th Annual Babson Entrepreneurship Research Conference, April 1990. Denmark: Aarhus University Institute of Management. ~ 12 ~
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