Weak ties theory of entrepreneurship
The Weak Ties Theory: Why Acquaintances Matter More Than Friends
Why do some people seem to have access to better opportunities than others? The answer often lies in their network—but not the part of the network you might expect.
The Weak Ties Theory was put forth by sociologist Mark Granovetter in 1969 (published widely in 1973). In a groundbreaking study of job seekers, he found that 75% of people found their jobs through acquaintances, not close friends. Surprisingly, the rate was even higher for high-income earners.
Strong Ties vs. Weak Ties
The core insight of the theory is that "Weak Ties" are paradoxically more powerful than "Strong Ties" when it comes to gathering new information.
- Strong Ties (Close Circle): These are roommates, nuclear family, and best friends. While they offer trust, they provide very little new information. Because you move in the same circles, you already know what they know. It is an echo chamber.
- Weak Ties (Acquaintances): These are colleagues, friends of friends, or people you see rarely. They act as bridges to disparate networks that you do not belong to. They are the conduits for novel information (new jobs, new technologies, new market gaps).
The Entrepreneur as a "Broker"
Individuals who have many weak ties to diverse networks are able to bridge "Structural Holes" (Burt, 2002).
A structural hole is a gap between two groups that do not talk to each other (e.g., Software Engineers and Biologists). An entrepreneur who acts as a bridge between these groups occupies a strategic position. They can:
- Arbitrage Information: Pass a solution from Group A to Group B (where it is unknown).
- Facilitate Transactions: Connect a supplier with a client and collect a finder's fee or commission.
- Drive Innovation: Combine ideas from disparate industries to create something new.
The Machiavellian Side of Networking
Is there a dark side to this strategy? Some regard the practical application of Weak Ties theory as potentially unethical. It suggests actively cultivating shallow relationships for transactional gain ("divide and conquer").
This calculated approach to human connection shares characteristics with the Machiavellian Theory of Entrepreneurship, implying that successful founders may view people as resources rather than friends.
Video: Granovetter's Theory Explained
References
Burt, R. S. (2002). The social capital of structural holes. The New Economic Sociology: Developments in an Emerging Field, 148(90), 122.
Granovetter, M. S. (1973). The strength of weak ties. American Journal of Sociology, 78(6), 1360-1380.
Granovetter, M. S. (1977). The strength of weak ties. In Social Networks (pp. 347-367).
