This article applies social network concepts, developed in sociology, to the analysis of the entrepreneurship decision. Theory suggests that if one’s social network provides social support so as to reduce the costs of entrepreneurship, those with more effective social networks may possess a greater incentive to attempt entrepreneurship, ceteris paribus. Empirical investigation of this hypothesis is conducted using a unique new data set, the Iranian Entrepreneurial Climate Study, which allows analysis of entrepreneurship in a social context. Results illustrate that the individual entrepreneurship choice is highly influenced by the size and composition of the social network and that women receive less influential social support for entrepreneurial activity than men receive, a finding that may provide an explanation for gender differences in entrepreneurship likelihood.

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