THE NETWORK POSITION OF SMALL BUSINESSES - AN EXPLANATORY MODEL

To date, there has been limited empirical research related to network theory. The term ''network'' denotes the relationship of entrepreneurs and their small businesses with the outside world. This article prese nts an explanatory model of the network position of small businesses. By testing empirically a number of theoretically-deduced hypotheses, w e examine the impact of entrepreneur- and enterprise-related factors o n the network structure. The empirical findings indicate that highly t rained entrepreneurs, of larger and growth-oriented businesses in part icular, have a wide network position. The presence of growth-oriented businesses in different kinds of networks suggests the importance of f orming networks for small businesses.