Putting “entrepreneurial finance education” on the map: Including social capital in the entrepreneurial finance curriculum

Abstract

Purpose

The purpose of this paper is to bring attention to “entrepreneurial finance education”, an aspect of entrepreneurship education that is widely taught but neglected by the educational literature. It does so by exploring how social capital, a key resource for entrepreneurs, can be incorporated into entrepreneurial finance education.

Design/methodology/approach

By drawing upon social capital literature in the context of funding sources for entrepreneurs, the paper highlights the significance of bonding and bridging social capital for entrepreneurial finance.

Findings

The review of relevant literature confirms the importance of social capital for entrepreneurial finance. The existence of bonding social capital, which refers to a trusting relationship between entrepreneurs and financiers, allows entrepreneurs to access their financiers’ resources (e.g. contacts, knowledge, reputation, further funds) through bridging social capital.

Practical implications

Students of entrepreneurial finance need to understand the role that both facets of social capital play in the context of fundraising. This paper proposes ways of incorporating social capital into various approaches to entrepreneurial finance education. This allows educators to include relevant topics and research into their syllabi, while enabling students to study a crucial, yet under-represented, topic in entrepreneurial finance education.

Originality/value

Given that entrepreneurial finance education has to date been neglected in the educational literature, this paper begins to address a huge void. It clarifies potential contents of entrepreneurial finance education, demonstrates the importance of including social capital in the education of entrepreneurial finance students and suggests practical ways of achieving this.

Citation

Macht, S.A. (2016), "Putting “entrepreneurial finance education” on the map: Including social capital in the entrepreneurial finance curriculum", Education + Training, Vol. 58 No. 9, pp. 984-1002. https://doi.org/10.1108/ET-08-2015-0068