Social networks play a crucial role in entrepreneurial processes and outcomes. However, little is known about the impact of social networks on microenterprises’ business performance. Addressing this gap, I focus on two dimensions of social networks, namely network size and resources embedded in a social network. Theoretically, combining insights from strategy research highlighting strategic needs as a determinant for external resource acquisition and the resource-based view of the firm suggesting that acquiring complementary resources can be a source of competitive advantage, I theorize why micro-entrepreneurs need to acquire external resources from their social networks, and why and how acquiring external resources are beneficial for their business performance. Empirically, I investigate the social network-performance relationship in the microenterprises context based on a dataset of 200 stratified randomly sampled Chinese micro-entrepreneurs in Shanghai. While the results suggest that micro-entrepreneurs’ network size per se does not relate to their business performance, I show that micro-entrepreneurs who can access to more varieties of resources embedded in their social networks tend to report a higher profit in a typical month. Furthermore, I find that micro-entrepreneurs whose external resources are more equally distributed across network contacts are associated with better business performance.