By Jan Rath; Centre for Research in Ethnic Relations (Economic and Social Research Council)
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However social capital has its price and may even induce counterproductive effects, as Flap, Kumcu and Bulder show in Chapter 8. Entrepreneurs can have too much or even the wrong kind of social capital. Receiving support in the form of information, capital or labour from other members of one’s network requires new social investment Jan Rath 17 and thus implies costs. A great deal of time and energy has to be spent on the maintenance of networks, which is an investment without direct rewards. Business people may experience pressure to hire relatives or friends of friends because of moral constraints or a social commitment to particular persons, but they are not necessarily the best people for the job.
Globalisation theory credits demand in the advanced countries with too much determinism and immigrants with too little agency. Light proposes the concept of ‘spillover migration’. Spillover migration starts as demanddriven but in midstream it becomes network-driven. This shift occurs because migration networks reduce the costs and hardships of migration, expanding the supply of migrants and lowering their reservation wages. Informalisation also advances because immigrant entrepreneurs tap social capital in migration networks, thus permitting them 18 The Economic, Institutional and Social Environment to access hitherto inaccessible demand.
As Frisby states, fashion combines Stephan Raes 31 ‘the attraction of differentiation and change with that of similarity and conformity’ (cited in Wilson, 1985, p. 98). This provided a major dilemma for the mass production of clothing. Mass production presupposes a standardisation of taste and behaviour (a mass market) that is part of the fashion message (‘conformity’), while at the same time it is confronted with a wish for differentiation. 16 Numerous theories have been proposed to explain fashion change (see for example Craig, 1994; Davis, 1992; Wilson, 1985).