Entrepreneurial climate encompasses the entrepreneur’s entire functional environment including opportunities, skills creation and social support. When entrepreneurs attempt to launch ventures in areas which are geographically isolated or in which entrepreneurial climate is perceived negatively, entrepreneurs have difficulty finding resources and services typically used by small business owners.

Treadway, Hochwater, Kacmar, and Ferris, (2005) define networking ability as the ability to develop contacts and relationships for the purpose of exchanging information or resources in an effort to further a career or business venture. This particular construct allows us to examine the entrepreneur’s capability in creating network ties, which may be difficult in geographically isolated areas where entrepreneurial climate may be perceived as negative.