Social Support and Resource-Scarcity in Entrepreneurship

Social support is highly effective for successful entrepreneurial activities. However, it remains unclear which resources remain accessible in times of crisis in an already resource-scarce environment; and how social support networks enable or even hinder entrepreneurs in accessing these resources. We study the response of entrepreneurs to crisis and the role of social support in providing access to existential resources. We use qualitative methodology and interview data from the South Pacific Island Nation of Tonga, a context defined by constant disruptions of climate change, resource scarcity, and now the Covid-19 crisis. Findings show that 1) land and access to land are the ‘last available’ resources to create new entrepreneurial activity; 2) women entrepreneurs rely on instrumental social support to access land, and 3) in times of crisis social support can be revoked and vanishes over time. With these findings, we advance the social support literature and shed light on the possible dark side that comes from the reliance on social networks for resource access. Further, we re-emphasize the role of land in entrepreneurs' response to crises in a resource-scarce environment and that being ‘landless’ creates a key institutional barrier for women in times of recovery.