In entrepreneurship, there are three types of capital necessary for the development of an entrepreneurial project: social, financial, and human. While financial capital represents access to monetary resources and human capital access to knowledge, social capital encompasses all the relationships within our network. The unique aspect of social capital is that it can allow us to access the other two types of resources.
Social capital comprises two types of relationships or ties. Strong ties are the relationships we maintain with people in our immediate network. These ties are very strong but lack diversity. Weak ties, on the other hand, are the relationships we develop with people beyond our immediate circle who can provide us with access to invaluable resources for the development of our project.
