Formal and informal networks in small business in the media industry

This paper examines the formal and informal networks in small businesses in the media industry. Networks are important to small firms and are an integral part of the structure of the media industry. Technological changes and the proliferation of new channels have changed the nature of the television industry and this paper examines the role of networks in meeting these challenges. The research was based on questionnaires followed up with interviews. This study found that the social and cultural factors were important in the establishment and maintenance of both formal and informal networks. Low barriers to entry in terms of investment in fixed assets and powerful customers have meant that formal and informal networks play an important role in the survival and profitability of small firms in the media industry.