Entering a Network: The Case of a Science-Based Start-Up Company. Sheena Leek Birmingham Business School, University of Birmingham, Edgbaston, Birmingham B15 2TT, United Kingdom. S.H.Leek@bham.ac.uk Louise Canning Birmingham Business School, University of Birmingham, Edgbaston, Birmingham B15 2TT, United Kingdom. L.E.Canning@bham.ac.uk Abstract Purpose of the paper and literature addressed Innovation and entrepreneurship can be the lifeblood of an economy and in many countries the transfer of academic science to new business ventures in the commercial sector represents an important means of sustaining economic growth and competitive advantage. Our interest lies in technology transfer and specifically the attempts by science-based entrepreneurial (start-up) firms to establish a position in a market, in a network and to initiate relationships with customers in that network. Challenges faced by any start-up company include establishing a customer base and building a reputation as a reliable supplier. These tests are particularly acute for a new venture seeking to launch its business in high technology product areas. Not only does a target customer have to be persuaded of the problem-solving ability of an unproven supplier but those customers will likely have to get to grips with unfamiliar products. Ruokalinen (2005) suggests that customer references are vital for a high technology business. A positive first customer reference makes a significant contribution to subsequent customer acquisition because it can provide a company with credibility, enhance its reputation and reduce the perceived risk of the customer. The problem for a start up company is obtaining the first customer reference. How can the company break into a target market, enter a network to obtain their first customer reference? One way that a firm might do this is to draw from the social capital of its employees (Ruokolainen 2005). This would involve the company examining the relationships of its employees to determine whether there were any contacts which it could utilise to enter its target market, to initiate new relationships in this network. If the company has no social capital to aid entrance how does it then proceed? Research findings and main contribution The paper presents preliminary findings of a longitudinal study. We examine a science-based entrepreneurial firm’s business development activities, focusing in this instance on its initial attempts at network entry. In doing so we show that social capital does not necessarily facilitate entry for new business ventures. Keywords: customer reference, social capital, network 1