Social Fluidity Mapping System—A Way to Reduce Social Stigma in Business Failures

Abstract

The research explores the social stigma associated with the failure of entrepreneurial activity by means of escape velocity. Negative publicity, lack of financial intermediation, disgrace among the stake-holders and lack of social immunity causes social stigma. The research explored the effectiveness of the Social Fluidity Mapping System (SFMS) followed by the entrepreneurs in the context of reducing the social stigma. The affinity created by the entrepreneurs with the society under the corporate social responsibility programme is well thought-out as the social fluidity for the purpose of research. The results contented that the social fluidity mapping is established on the basis of social cohesion theories. It also builds enterprise image. It leverages the social networks to develop business rapport. It establishes alliance strategy to reduce risk and build community funding system to reduce the financial turbulence. High escape velocity ratio leads to reduce the social stigma. The success of social fluidity mapping depends upon the leveraging the social network that creates entrepreneurial structural relationship among the stake holders. The customer reliability is no longer a significant competitive advantage, but trust among the society is a competitive advantage for an entrepreneur to reduce the social stigma related with business failures.

The author acknowledges M. Karthick Kumar, P. Arun Prasanth and G. Arun Prasanth for collecting the data.

Annexure I

Social fluidity Variables

Sl. No.	Variables	References
1	Business integration	Ahlfors (2005)
2	Community affiliation	Tribhuvananda and Nandeshwar (2011)
3	Conservative equilibrium	Landier (2005)
4	Crowded funding	Agarwal et al. (2010)
5	Distribution networks	Hitt et al. (2001)
6	Execution complexity	Yixin and Bhattacharya (2008)
7	Franchising	Tracey and Jarvis (2007)
8	Integrity	Eijaz et al. (2005)
9	Passion	Peredo and Mclean (2006)
10	Power of prophecy	Wootton and Horne (2010)
11	Religious affiliation	Sherkat (2001)
12	Research capabilities	Audretsch (2006)
13	Responsibility	Eijaz et al. (2005)
14	Risk toleration	Peredo and Mclean (2006)
15	Service	Seelosa and Mair (2005)
16	Social acculturation	Vastag and Montabon (2002)
17	Social assimilation	De Palo et al. (2006)
18	Social dimension	Galliano (2002)
19	Social integration	Eijaz et al. (2005)
20	Social media	Zarrella (2009)
21	Social simulation	Smeds (1994)
22	Social stratification	Bian (2002)
23	Social unification	Madsen and Naerssen (2003)
24	Social ventures	Tracey and Jarvis (2007)
25	Societal cartels	Granovetter (2005)
26	Societal interaction	Foley (2008)
27	Survival start up	Nancy et al. (2000)
28	Teamwork	Zahra and Nielsen (1999)
29	Working capital bailout	Gries and Naude (2010)