Chinese Journal of Sociology ›› 2012, Vol. 32 ›› Issue (3): 78-97.

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An Analysis of SelfEmployers’ Social Networks

Author 1: Wang Wenbin, Sociology Department, School of Philosophy and Society, Jilin University ;
Author 2: Zhao Yandong, Institute of Science, Technology and Society, Chinese Academy of Science and Technology for Development.   

  • Online:2012-05-20 Published:2012-05-20
  • Contact: Wang Wenbin, Sociology Department, School of Philosophy and Society, Jilin University E-mail:Wangwenbin7586@163.com

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Abstract:

Based on the 2009 JobNet Survey conducted in eight cities, an analysis of selfemployers’ social networks and their effects was performed, with an focus on the composition of the selfemployer group, the roles of social networks in the process of raising investment funds and seizing business opportunities, and the impact of businessconnection networks on business performance. Results showed that selfemployers were playing an important role in China’s marketization. To be more specific, first, the selfemployers’ social networks, as compared with those of the employed, had unique features: The average age and educational level of the employers significantly differed from those of the employed; the network size and job variety of the selfemployers were better than those of the employed although the differences at the network top layer and network diversity displayed complexity, with the former being more dependent on restaurantrelated networks. Second, the selfemployers’ social networks functioned differently in obtaining starting funds and business opportunity: more crucial in obtaining business opportunities so as to increase profit returns than securing funds. Third, unique businessconnection networks were formed in the process of selfemployment and these networks had positive effects on the selfemployers’ business performance outcomes. If business performance was measured by selfemployers’ highest assets, it was found to be positively affected by network size, network composition, network diversity, and network resources. To the selfemployers, strong ties led to business funds, but weak ties and mixture of strong and weak ties were the key to business opportunities and better business performance.

Key words: selfemployers, social networks, network effects