Entrepreneurial Networking and Resource Inequality: The Unexpected Impact of Institutional Support

This research uncovers the mechanisms by which resource inequality emerges in entrepreneurship and provides actionable insights for entrepreneurship policy aimed at its mitigation. Drawing on a social network perspective, we develop a multilevel conceptual model that highlights the systematic influence of the external environment and institutional support on resource inequality, through their impact on entrepreneurial networking and resource acquisition. To theoretically elaborate on our model, we employ a simulation approach, controlling for factors typically associated with resource inequality. The results demonstrate that the external environment determines the extent of resource inequality in entrepreneurship, and that the mechanisms leading to resource inequality vary across different environmental conditions, arising from two distinct sources: circumstances and brute luck. Our simulations of various forms and targeting approaches of institutional support for entrepreneurial networking reveal that certain forms and approaches may exacerbate, rather than mitigate, resource inequality. This study concludes with implications for entrepreneurship and management research on inequality, as well as policy recommendations for mitigating resource inequality in entrepreneurship.