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.

1 Introduction and Aim

Structural relationship network of entrepreneurship evolved in the US has been quite successful and has considerable applicability in other countries. Entrepreneurial behaviour traits produce counter productive effects due to stigma of failure (Landier 2006). The social status of an entrepreneur predicts high degree on interest in avoiding business failure (Begley and Tan 2001). The degree of business failure does not occur due to experience but due to lack of supportive attitudes (Jason et al. 2004). The entrepreneurs possessing high self-efficacy and social capital are able to recover from grief over project failure (Shepherd et al. 2009 ) . An entrepreneur devotes more time to develop entrepreneurial intelligence for his own enterprise than their functional activities. Only by that time, the entrepreneurs map the resource availability with the social currency. By that time, the business failure happens due to social stigma. To get rid of such catastrophe, there is a need for Social fluidity mapping system.

Entrepreneurs are driven not only by the business values but also by the social values James Austin (2006 ). The businessmen believe that they are defending free enterprise when they declaim that business is not concerned “merely” with profit but also with promoting desirable “social” ends (Friedman 1970 ) . The, environmental spirit can have important moderating influence on this relationship between culture, stigma and entrepreneurial risk taking Damaraju et al. ( 2010 ) . If an entrepreneur fails in this innovation process, the firm remains on the market, but bears a stigma of failure Crifo and Sami (2008 ) . The corporate social responsibility is an imperfect substitute for business failures (Baron 2007 ). However, its purpose is to reduce the risk associated with the business failure (Milton 2000 ) . Past researchers proved that the corporate social responsibility had positive correlations with social currency and it decreases the business failure. The findings of Melé (2011 ) suggest that it is necessary to develop a new theory on the business and society relationship. Hence, the present study aims to conceptualize the value of corporate social responsibility with the social fluidity mapping .

The primary objective of the research is to determine the basic values of social fluidity system. The facilitating objective is to explore SFMS effect in getting rid of stigma of failure associated with entrepreneurial activity.

2 Methodology

Primary data were collected from 312 entrepreneurs having least 10 years experience, possessed at least two sales outlets and must have engaged in social responsibility programmes. Snow ball sampling method was used to identify the entrepreneurs. The entrepreneurs located in five western districts, in the state of Tamil Nadu (in India) are selected. There are 9,000 entrepreneurs in the western part of Tamil Nadu. Out of that only 3,256 entrepreneurs are registered in the traders associations. Only 934 entrepreneurs are organizing their own social affinity programmes under corporate social responsibility. Hence the sample size constitute about one third of the size of the population. 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 this research. Twenty nine social fluidity variables (Annexure 1) were identified from the past researches. The perceptions towards such variables are measured with five-point rating scale. Gravity index is defined as the location coordinates of the sales outlets of the entrepreneurs. It is measured in terms of percentage. If the gravity index is 100, it means that the location of the sales out let is exactly at the same place of the desired location i.e., nearer to the sock keeping units. Escape velocity is the ratio of success over the failures in the business. Analysis of variance is used to find out the variations between the social fluidity variables with gravity index and escape velocity.

3 Social Fluidity Variables

Factor component analysis was done to find out the social fluidity factors that are practiced by the successful entrepreneurs. Through interview schedule, 312 entrepreneurs were surveyed and they were asked to evaluate 29 questions about their perception towards the social fluidity variables on five point scale (1 = completely disagree; 5 = completely agree). The data collected were coded to perform factor analysis using SPSS. The null hypothesis, that the population correlation matrix is an identity matrix, was rejected by the Bartlett’s test of sphericity. The value of Kaiser-Meyer-Olkin statistics (0.656) is also greater than 0.5. The chi-square statistics value is 678.56 and it is significant at 95 % level of confidence at degrees of freedom 105. Hence principal component analysis is appropriate for 00 analyzing the correlation matrix of the twenty nine variables. The variables having factor loading less than 0.5 were filtered out of the analysis. The number factors were selected based on the eigenvalue. Four factors having eigenvalue greater than one was selected. All the four factors are accounted for cumulative variance of 64 % (Table 10.1).

Table 10.1 Factor component matrix of social fluidity variables

Fourteen variables having factor loading less than 0.5 are filtered out. The variables ‘societal interaction’, ‘community affiliation’, ‘social stratification’, ‘social assimilation’, and ‘social media’ are highly correlated and contribute to a single factor which can be named as ‘social networking’.

The variables ‘risk sharing’, ‘franchising’, ‘business integration’ and ‘power of prophecy’ are highly correlated and contribute to a single factor which can be named as ‘alliance strategy’.

The variables ‘social ventures’, ‘societal cartels’ and ‘social unification’ are highly correlated and contribute to a single factor which can be named as ‘social cohesion’.

The variables ‘working capital bailout ’, cohesion is indicated by the number of mutual dyadic ‘crowded funding’ and ‘survival startup’ are highly correlated and contribute to a single factor which can be named as ‘community funding’.

Based on these findings, we can define the functions of social fluidity mapping as follows:

Under Social Fluidity Mapping System, the entrepreneur recognised the social cohesion theories to build enterprise image, leverage the social networks to develop business rapport, form alliance strategy to mitigate risk and build community funding system to reduce the financial turbulence.

4 Justification for Social Fluidity Mapping

The business development plans of the entrepreneurs depend on building a strong relationship among the society. The empirical research conducted among the successful entrepreneurs proved that social networking, social cohesion, alliance strategy and community funding are the key elements of social fluidity. The success of the social fluidity mapping depends on how these variables are integrated.

4.1 Social Networking

The benefits of social networking for entrepreneurs are usually more strategic and can be more transparent so customers can get ideas from others that might improve their success Vernon (2009 ) . Firms that rely heavily on external social networks scored 24 % higher on a measure of radical transformation than companies that do not have such network (John and Pamela 2008 ) . Social networking websites are worth huge premiums because of their game-changing nature and huge potential. Building rapport among the stake holders is an essential element for the business.

Case Example: Elumalai Sarathbabu’s venture “food king” was established with a small capital. First he created a network for his own employees and then for customers. After that, he entered into social networking web sites and placed his ideas. He started free coaching classes for meritorious poor children in Tamil Nadu under the brand ‘Golden-10’. He initiated a project for road-side vendors to help them upgrade and organise their micro businesses. He initiated a social movement to achieve “Hunger Free India”. Even though, his mission is not to earn big profits, his turnover reached Rs. 7.5-crore within 5 years. The social networking strategy enables him to increase the numbers outlets to six in India (Sarathbabu 2011 ) .

4.2 Social Cohesion

The degree of attitudinal consensus or behavioral uniformity in a group has been employed by scholars as measures of group cohesion. Thus, several investigators have emphasized the degree of positive interpersonal ties among persons as a basis of social cohesion (Cartwright 1968, Gross 1952, Lott 1965 ) . Moreno (1937 ) argued that social cohesion is indicated by the number of mutual dyadic ties within the group. The cohesion has been understood by the business entrepreneurs as “the resistance of a group to disruptive forces” (Gross 1952). The social cohesion will build values of mutual-positive attitudes among the members in the group (Lott 1961) . The establishment of such cohesion groups among the society enables the entrepreneurs to create business segments.

Case Example: Rajashekar Reddy Seelam launched Sresta Natural Bio-products firm that markets more than 200 food commodities cultivated without using chemicals or pesticides (Sreekala 2011 ) . The venture was financed by the South-India based Murugappa Group in 2004 with an initial capital of Rs. 1 crore. The social cohesion model of the Sresta was based on three distinct groups. In the supply side, Sresta group entered an agreement with 10,000 farmers who follow organic certification procedures for cultivating various crops. In retailing side, Sresta group clinched deals with leading retailers such as Future Group, Food World, Heritage, Spar, Spencers and Godrej Natures Basket. It operates through shop-in-shop business model. In customer segmentation, they saw a substantial opportunity in tying up with IT companies and opened organic stores on their campuses. Its first in-house store was opened in Infosys campus at Hyderabad. The establishment of these three distinctive cohesion groups in the business society enables Sresta to cultivate more than 6,000 tones of food products in a year. Sresta is also exporting 65 % of its agricultural commodities to US, Western Europe and Japan.

4.3 Alliance Strategy

Alliance strategy created by entrepreneurs can benefit them from various business aspects such as economies of scale, shared technology, risk sharing and access to untapped market. It also decreases the operational costs. Strategic alliances not only drive the entrepreneurs to share profits, but also to share the risk of loss. Entrepreneurs follow five management structures as proclaimed by Cullen (1999) such as dominant parent, shared management structure, split-control management structure, independent management structure and rotating management.

Case Example: Ashvin Gami uncovered that there was no typical ERP software solution available for the real estate business. He established Aakash Strategic Software firm, with a twenty-people (Babar 2011 ) . The team then coded software that helps real estate firms to assess their businesses through Web-based applications. Its alliance strategy with their clients like Armstrong Group, Usha Breco Reality, Namdivardhan Group and Gannon Dunkerley enables them to develop their business into London and New York. The alliance strategy also initiates them to compete with the big daddies in the business such as Oracle and SAP.

4.4 Community Funding

The community funding is in the two diluted forms. First form is based on the capital infusion from the customer community. Second form is based on the contribution made to others under corporate social responsibility.

Case Example: The business model of Lebara set an example for capital infusion through its own customer’s community. Ratheesan of Madurai (located in the state of Tamil Nadu in India) who worked in a telecom company, launched his own London-based telecom company, Lebara, in 2001 with a start up capital of €55,000 in credit for 14 days (Ram 2011 ) . It started selling international telephone calling cards. Leara customers are the immigrants in London who used to call to their families at cheap rates. The retained cash from the immigrants were used for buying cards from other companies. Lebara got discount from their suppliers for making prepayments. After that, Lebara had infused the revenues earned from the immigrants and did not borrow any loans. Lebara focused at the immigrant community in Europe and Australia and earned £650 million. Lebara has struck agreements with several network providers across Europe. The top 10 destinations for repatriating the money from Europe and top 10 destinations of its mobile customers are from similar locations. Lebara as a part of community funding to others, set up a charity to provide care services for children in Tamil Nadu with £10 million. This goodwill gestures enable them to develop their business to France, Netherlands, Germany, UK, Australia, Switzerland, Denmark and Spain. Lebara takes advantage of the patronage of 3 million customers and more than 1,000 employees in 10 countries.

The entrepreneurs who earned by way of social currency (goodwill) are funding the under privileged society as a part of corporate social responsibility. The concept of ‘crowd-funding’ and crowd sourcing through venture capital firms are also often used by the first generation entrepreneurs for capital infusion. In case of Jignesh Shah’s establishment of Multi Commodity Exchange, the venture was financed by twenty venture capital firms.

5 Gravity Index

Entrepreneurs choose the location of their business in proximity to the customers place. The location model depends on the spatial competition, demand and supply. The entrepreneurs expand their business in different locations after creating social networks. To find out whether the social fluidity variable depends upon the location factors, gravity index was constructed. The data regarding the number of sales outlets for each business unit, the number of round trips per month from the stock keeping units and two-dimensional coordinates (among the sales outlets) were collected. The center of gravity location model (Martinich 2008 ) is used to find out the two coordinates ‘x’ and ‘y’. The optimal location is derived based on the following equation.

$$ {\text{Minimize}}\;z = \sum\limits_{i = 1}^{n} {w_{i} \left[ {\left( {x_{i} - x} \right)^{2} + \left( {y_{i} - y} \right)^{2} } \right]} $$

where as (x, y) are the two dimensional coordinates; ‘n’ is the number of sales outlets; ‘i’ is the sales outlets and ‘$w_{i}$’ is the number of round trips from the stock keeping unit to sales outlets per month.

${\text{Gravity}}\;{\text{index}} = \left[ {\left( {a/b} \right)/\left( {x/y} \right)} \right]100$; where as (a, b) are the actual co-ordinates.

Hence if, ‘x’ and ‘y’ coordinates are equal, the sales out let is located at the exact place. Otherwise, there is fluidity in location of the sales outlets. The frequencies of the calculated values are mentioned in Table 10.2.

Table 10.2 Gravity index

The result reveals that around 65 % of the entrepreneurs’ (in the sample) sales outlets are not located proximity to stock keeping units.

Analysis of variance is used to find out whether the social fluidity variables such as ‘social cohesion’, ‘social networking’, ‘alliance strategy’ and ‘community funding’ differ in terms of gravity index. The null hypothesis that ‘the social fluidity variables have no significant variation among the means of the gravity index’ was constructed. The results are portrayed in Table 10.3.

Table 10.3 ANOVA—social fluidity versus gravity index

The results indicate that there is a significant variation among the means of gravity index with the social cohesion variable and alliance strategy. The null hypotheses have been rejected in these cases. However for the remaining social fluidity variables, the null hypothesis has been accepted. Hence it may be concluded that the social cohesion attitudes and alliance strategy of the entrepreneurs depends on the location of the sales outlets. The entrepreneurs build a brand image in the location of the sales outlets by using social cohesion models and alliance networking. This leads to establishing the business unit in a concentrated market place. This attracts concentration of customers in a location and distracts spatial competition.

6 Escape Velocity

Entrepreneurs come across financial and operating risk. To find out whether the risks are substantiated with up-turns in the business, escape velocity is calculated. The escape velocity is measured based on the following equation.

$$ {\text{Escape}}\;{\text{Velocity}} = \left( {{\text{Number}}\;{\text{of}}\;{\text{up-turns}}/{\text{Number}}\;{\text{of}}\;{\text{down-turns}}\;{\text{during}}\;{\text{the}}\;{\text{course}}\;{\text{of}}\;{\text{business}}} \right) \times 100 $$

The down-turns were measured with the events related to negative publicity, lack of financial intermediation, disgrace among the stake-holders and lack of social immunity. The up-turns were measured based on the positive events related to additional capital infusion, expansion to other location, increase in social currency (Goodwill), sponsoring social welfare programmes and creating strategic network. All the events values are converted into quantitative value by giving equal weights. If the downturn exceeds the up-turn, the social stigma related to business failure will be high. The frequencies of the calculated values are grouped in Table 10.4.

Table 10.4 Escape velocity

The result shows that around 66 % of the entrepreneurs’ escape velocity is greater than 100. This implies that the stigma associated with the failures is offset with the upturn in their business. Analysis of variance is used to find out whether the social fluidity variables such as ‘social cohesion’, ‘social networking’, ‘alliance strategy’ and ‘community funding’ differ in terms of escape velocity. The null hypothesis that the mean factor scoring of social fluidity variable has no significant variations among the means of escape velocity has been established. The results are portrayed in Table 10.5.

Table 10.5 ANOVA—social fluidity versus escape velocity

The results indicate that there is a significant variation among the means of the escape velocity with the social fluidity variables. The null hypothesis was rejected in these cases. Hence it may be concluded that the social fluidity mapping influences the escape velocity. It decreases the social stigma related to business failures.

Conjoint analysis was carried out to determine the relative importance of social fluidity variables compared with the escape velocity. The reliability of using conjoint analysis was measured by R-square. Since R-square was 0.734, conjoint analysis was appropriate one. Table 10.6 shows the relative importance among the social fluidity variables as compared with escape velocity.

Table 10.6 Social fluidity mapping—relative importance

The successful entrepreneurs give more weight to community funding system than the other variables. The ‘community funding’ and ‘alliance strategy’ accounts for 60 % relative importance. However, to develop a strong community funding system, social networking, social cohesion and alliance strategy are essential. The transition pattern changes the socioeconomic situation of the entrepreneurs.

7 Case of M. Krishnan

M. Krishnan along with his brother converted a single retailing unit into a multiple unit using social fluidity mapping strategy Krishnan (2011 ). The social affinity created by him leads to prolonged survival in the business and even without borrowing loan capital. NK Mahadeva Iyer set up Sri Krishna Sweets in 1948 at Coimbatore. After him, it is being managed by M. Krishnan and his brother Murali. From a single retail out let, it has been moved to sixty two units in a period of 20 years. In the year 1991, it opened its branches in Coimbatore. It established its own corporate social responsibility department in 1992. During that period, it organised social welfare programmes in Coimbatore along with social entrepreneurs. In 1996, it opened its branch in Chennai. By the year 2011, there are fifty two outlets in the country located at Tamil Nadu, Bangalore, Hyderabad and Mumbai. It has offshore retail outlets are at US, UK, Singapore, Malaysia and Dubai. The sweet outlet has centralised kitchens spread over 100,000 ft². These are located in Coimbatore, Chennai, Bangalore and Mumbai in India. The recipe and the ingredients are dispatched from Coimbatore to other locations for the purpose of maintaining uniform quality. There is an advanced laboratory with experienced food-technologists to ensure the quality standards of both input and output. Its quality control lab is certified by the government. It uses bio-degradable and environment-friendly materials for packing. In addition, it uses the colours and natural savor as allowed as per government norms. Sri Krishna Sweets has employed over 1,000 people at all outlets. It also provides indirect employment to over 400 people. Sri Krishna Sweets is organizing a variety of corporate social responsibility programmes for the plural sections of the society and their overall growth needs. Few popular programmes are listed as follows.

• ‘Attrai Thingal’ (Tamil language Literary Series): In this programme, eminent Tamil scholars talk about classical Tamil concepts on third Sundays of every month.

• ‘Chef Amuthapadai’ (Divine feast): It is a programme that has been arranged to provide meals once in a month to children living in orphanage.

• ‘Chennai 365’ (Vision for Madras): It is a remarkable social responsibility programme that targeted at the urban society with the aim of creating neighborhood community.

• ‘Chinanchiru Kuyilgal’ (Lovely kids): It is a course organised for the children on classical music. It is conducted on first Sundays of every month.

• ‘Desathin Kural’ (Voice of Nation): Under this programme, inspiring speeches of leaders and spiritual heads will be broadcasted in All India Radio.

• ‘English speaking course’: It is a course conducted to develop the spoken English for rural children.

• ‘Eppa Varuvaro’ (Arrival Phase): It is a spiritual talk series conducted annually during the first 2 weeks of January.

• ‘Eppadi Padinaro’ (Philosophical Composer): It is a programme designed for musical admirers, which was conducted on fourth Sundays of every month.

• ‘Ilaya Bharathathinai Vaa Vaa’ (Call for young people of India): It is a patriotic talk series given by eminent personalities.

• International Spiritual Tourism promotion programme: This programme aimed to develop pilgrimage to divine places in the world.

• ‘Kanmaniyae Kathai Kelu’ (Story telling programme): It is an exclusive story narration programme for kids and conducted on first Sundays of every month.

• ‘Kuraiyondrumillai’ (Plethora thoughts): It is a programme organized for elders about the divine thoughts and conducted on first Sundays of every month.

• ‘Life guards at Elliot’s beach’: It is a unique programme designed for depressed youth. During a period of 10 years, 69 persons, who ventured into the sea, were saved.

• ‘Poorna Vidya’ (Holistic Educatio): It is a heritage programme organized exclusively for under privileged children in the society.

• ‘Sangamam’ (Cultural Feast): It is a cultural programme conducted for urban people.

• ‘Sangeetha Muthukkal’ (Musical Pearls): It is a classical music concert organized with the help of stalwarts in the field of ‘carnatic’ (Classical) music. It is broadcasted through All India Radio.

• ‘Silambam’ (Martial Art): It is a classical martial art training programme for students studying in colleges.

• ‘Sukanya’ (Women Empowerment): It is a guidance programme conducted for the young girls that aimed to improve the social well being.

• ‘Vallamai Tharayo’ (Brave Thoughts): It is a programme for dynamic youth that aimed to improve their self confidence.

In addition to the above, Sri Krishna sweets, in association with Exonora International, is engaging in restoration of water bodies and addressing environmental issues. All these programmes are uniquely designed to achieve the objectives of social networking and social cohesion. This enables to have alliance strategy with different groups in the form of franchising, collaboration and harmonization. The firm has tied up with Big Bazaar in Bangalore, Hyderabad and Mumbai. The business unit is not borrowing from anybody for working capital and capital requirements. The have generated their own funds from its own business community in the form of revenue itself. All the dealings are only in cash. They are contributing in the form of community funding for weaker section in the society. Figure 10.1 shows the SFMS followed by the Sri Krishna sweets.

Fig. 10.1

Social fluidity mapping in Sri Krishna Sweets

The social networking of the organization is based on the consumer oriented mapping (stratification of consumers) and society oriented mapping (stratification of non-consumers under societal values) strategies. The social cohesion strategies are segmented based on the age groups. The outreach programmes such as ‘Kanmaniyae Kathai Kelu’, ‘Porna vidya’ and ‘Chinanchiru Kuyilgal’ are designed to fit the needs of age groups less than 15. ‘Sangeetha Muthukkal’ and ‘Life guards’ are uniquely designed and targeted for age groups between 15 and 30. The out reach programmes such as ‘Sangamam’, ‘Kuraiyondrumillai’ and ‘Epadi padinaro’ are designed for the age group more than 30. The alliance strategy depends upon the predictive mapping and creative mapping. The organization has tie-up with Big-bazaar (a chain retail outlet in India) with the aim of creating business network. To introduce innovative ideas and to new product marketing, the firm is doing outreach programme such as ‘Chef Amudupadi’. The community funding strategies of the firm is based on crowd mapping, through which they are also one of the sponsors for providing scholarship to under privileged students. Through resource mapping, they are organizing their own welfare programmes in schools and undertaking the renovation of water tanks in Coimbatore. The returns from organizing corporate responsibility programmes enable them to create value for the firm’s ‘social currency’ (goodwill). In the long term, this social currency gets translated to provide monetary benefits.

8 Empirical Findings and Implications

Past researches contended that goodwill creation (Social Currency), supplier and customer relationship, risk mitigation and sourcing of funds are the main factors essential to get rid of the social stigma. The present research contented there is a need for social fluidity mapping to earn social currency. There is a strong association among the social cohesion and alliance strategy with gravity index. There is a strong association between the social fluidity variables and escape velocity ratio. High escape-velocity 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 returns on social affinity reduce the business failure (Fig. 10.2).

Fig. 10.2

Social fluidity pyramid

The results contented that the success of social fluidity mapping depends on the integration of social networking, social cohesion, alliance strategy and community funding. Creation of social cohesion and alliance strategy depends upon the location of the sales outlets. The equilibrium level of maintaining the social fluidity mapping decreases the risk associated with the entrepreneurship. This has been proved with the variation between the escape velocity and social fluidity variables. The hierarchy of the social fluidity mapping is in the order of achieving social networking strategy, social cohesion strategy, alliance strategy and community funding. The achievement of corporate responsibility values through social networking and social cohesion depends on the internal factors of the entrepreneur. However, the external factors such as alliance strategy and community funding depend on the value of the social currency created by the first two variables. The results were derived from the opinions of the well established experienced entrepreneurs and those who have successfully implementing corporate social responsibility programmes. Hence the ‘startup entrepreneurs’ would not focus on social fluidity variables. A social entrepreneur who created a social fluidity mapping can easily transform his social entrepreneurship into a business entrepreneurship. The entrepreneurs find easy to sustain, after establishing SFMS . During the start-up period, entrepreneurs created a matrix type of business model with social entrepreneurs to reduce the risk. SFMS provides not only the decision to establish corporate social responsibility, but also the choice of revenue models and the decision to change location. In order to reduce the stigma of failures, entrepreneurs need to create good relationship, reward the right cohesion group and create right working culture. A business unit that wants to be prospers in a time frame of rapid change has to build SFMS in its own system.

9 Conclusion

Entrepreneurs are relationship-driven people. They always aim to create social currency through corporate social responsibility programmes. The corporate social responsibility programmes are based on the SFMS. The success of social fluidity mapping not only creates value to business but also to society. If ‘startup entrepreneurs’ finds it difficult to penetrate into social fluidity mapping, they can arm up with social entrepreneurs and increases the value of social currency. The customer reliability is no longer a key competitive advantage. Instead, trust among the society is a competitive advantage for an entrepreneur to reduce the social stigma related with business failures. The social commitment is the absolute aim of SFMS fluidity mapping system.

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)