Entrepreneurial
Networking
Topic 12
Networking:
 Networking is a business tool that plays a very significant
role for the entrepreneur’s success.
 " knowing the right people at the right time at the right
place with the right cost“
 Networking is both an outcome of a past relationship
strategy and a resource for future strategy.
Advantages Of Having Good
Networking:
(1) Accessibility - Networking is very important
for the entrepreneur to gain either tangible or
intangible resources directly or indirectly.
(2) Reputation - Reputation refers to the ability
of entrepreneurs to exercise leadership or to
influence the decision making of other network
members, based on the expertise that they have.
(3) Expectations - These can both facilitate and
restrict the freedom of the company’s actions.
What Is Strategic Networking?
Being a strategic entrepreneur is to envision the future and
take the necessary steps to create that future.
Strategic networking, then, is gaining clarity on an
entrepreneur’s goals and objectives to be achieved in
running the business by utilising their interaction with
others and determining the best action that should be taken
Entrepreneurs need to find ways and means to create good
networking and gain maximum benefit from it.
Networking should be one of the core marketing tactics of
most independent professionals and small business owners.
Entrepreneurs may use client-centred networking to lessen
their reliance on cost and time in getting and distributing
information.
Types Of Networking
Formal
Networking
• Formal networking is the
existing relationship
between various people
who have a symbiotic
relationship with the
entrepreneur
• Example: suppliers,
distributors,
Informal
Networking
• Informal networking is
established through
relationships with
childhood friends,
members of one’s family
and people sharing
common interests or
hobbies
• Example: family
members, friends,
workers (strong bond)
Public
Networking
• Entrepreneur’s
information source
• Example: magazine,
newsprints, tv dll
The Importance Of Networking
Develop Trust
Build Confidence
Create an
Interdependent
Situation
Reduce
Bureaucracy
Source of
Creativity
Increase
Information
How To Establish Strategic
Networking For Entrepreneurs
Good Planning
-
Need good planning to succeed in
entrepreneurial process and
management
- Every planning must begin
questioning youself about goals to
achieve, strengths, weaknesses
Ask Yourself
- What and how many networking
relationships he wants in one
month
Learning Networking Technique
-
-
Identify relevant associations
such as business, sports and
computers associations
Make effort to attend meetings
Entrepreneurs And Networking
Strategies for developing effective
networking
(a) Ready to listen;
(b) Ready to compromise;
(c) Skills in giving confidence; and
(d) Very much at peace.
Entrepreneurs And Networking
Any failure to build good networking will:
(a) Increase cost;
(b) Waste time;
(c) Waste the resources of the company;
(d) Damage the entrepreneurÊs reputation;
(e) Damage the company’s reputation; and
(f) Create dilemmas.
1. Emotional
Barriers may arise from emotional
flaws apparent in the characteristics,
personality and ego of an
entrepreneur.
3. Psychological
Psychological barriers affect an
entrepreneur’s interactions with
other people
5. Expressions
Expressions could help build, or spoil a
strategic network. The way we
express ourselves, is important
2. Physical
Physical barriers might arise
from an entrepreneurÊs
personal lack of confidence in
himself or from his inattention
to other important matters
with respect to manners and
attire
BARRIERS IN BUILDING
STRATEGIC
NETWORKS
4. Behavioural
The way we behave will
determine whether we are closed
or distant from others.