BEHIND CLOSED DOORS: THE ROLE OF INFORMAL COMMUNICATIONS IN THE SUCCESS OF KAZAKHSTANI STARTUPS

Abstract

The main goal of this capstone study is to understand how informal communications influence the success and growth of Startups in Kazakhstan. An important point in the research process was also to identify what is actually meant by the term “informal communication”. Are they really casual conversations and interactions that happen outside of formal business meetings? This capstone project is focused on understanding the role that these informal interactions play in building social capital, that is, the networks and relationships that help a Startup grow. In particular, the research questions intend to identify how these communications differ from formal ones and what their impact is on the development of Startups in the Kazakhstan ecosystem. The findings reveal that informal communications are more than casual, and they may even represent strategic exchanges, which have a meaningful contribution to the generation and maintenance of social capital within the startup community. These communications have more of an informative nature in regard to shared knowledge, resources, and support for each other, in an environment that is much less official and trustful for deeper connections on a personal and professional level. What is more important is that the study found that these informal networks are critical to how investment is secured and how collaborations are created in a way that one cannot access solely from formal channels. For instance, in Kazakhstan, social relationships and trust can be invaluable, so the role of these informal communications might be irreplaceable in guiding the startup ecosystem toward growth.