Networking

Networking and relationship building is a tool that every entrepreneur should use as these relationships could fill important gaps which develop into an effective business network that provides critical support to the business.

Networking

Networking is based on formal and informal relationships an entrepreneur interacts with throughout their lifetime which could include personal and business relationships.

Networking involves communication and information exchange that is generally reciprocal in nature, which support the growth of both parties (Camarinha-Matos and Afsarmanesh, 2006). Entrepreneurs should utilize their network as networking helps entrepreneurs expand marketing expertise and improve general performance (Hakimpoor et al., 2011).

Networking gives entrepreneurs access to resources and mobilizing these resources within a network is ordinary business behavior (Nieuwenhuizen, 2019).

The value of networking and business growth

Networks provide critical support a business needs to grow through mutually beneficial

assistance and cooperation. A strong network can ensure realistic growth goals and

motivate an entrepreneur. It also contributes to the growth of a businesses social capital

which gains public favor (Nieuwenhuizen, 2019). A study by Inno-Grips (2011)

stated, for high-growth to occur one would need to take a comprehensive approach which would include coaching networks. Coaching is the act of training by means of giving information and advice in a particular field. Professional associates or even family

members can become these "coaches" who provide valuable intellectual resources that

can help you grow as an entrepreneur. Coaching can be obtained directly from a personal network or even indirectly through a recommended contact. A coach or mentor would have an abundance of knowledge, experience and contact networks that would help an entrepreneur accelerate their growth and business. The aforementioned generally takes years to acquire which is why mentors are highly coveted.

A study on the replication of high-growth in entrepreneurs (Storey, 1994) found that an

"entrepreneur must be provided with increased access to networks, finance and

international markets" to progress. It also stated that peer-to-peer mentoring networks

were critical in any training program.

Collaborations or partnerships are reciprocal in nature as the parties involved benefit from the network while sharing ideas, resources and advice. Smith (2004), stated that it is empirically supported that businesses involved with networks survive longer and do better then businesses that are not. Networking has also been found to increase business competitiveness (Kariv et al., 2009). Sharing information and industry specific knowledge can be very advantages for these businesses which is why they succeed. This is supported by Hakimpoor et al. (2011) who also mentions higher growth rates in these

network involved businesses.

Entrepreneurs that network have access to more resources which assist them in growing their business. With that being said, entrepreneurs should therefore work on their networking skills to join these networks.

There are 5 essential skills every entrepreneur should enhance to become a good networker. These include:

•Communication

A good level of communication means being able to relay your ideas

comprehensively to prospective networkers.

•Negotiation

Entrepreneurs need to negotiate to the point where all parties involved benefit.

•Leadership

This includes being trustworthy, diligent and capable enough for prospective

networkers.

•Assertiveness

In business, entrepreneurs should never be too submissive or aggressive as the

business will end up suffering huge losses.

•Influencing and motivating others

Entrepreneurs need be confident and convincing while motivating others.

Conclusion

Anyone can start a business however, not everyone can create a successful business that continuously grows and succeeds. Higher growth rates can be seen in businesses that are involved with networks as the collaborative activities involved such as idea and resource sharing serve as a big advance to those that do not have access to them. These formal and informal networks aid in the growth and development of businesses which is why it is important to participate in networking. With that being said entrepreneurs should master the 5 essential networking skills to participate and improve their businesses through networking.

Reference list:

Author: Ashley Schultz

Academic journal article 1

Cooney, T.M., 2012, November. Entrepreneurship skills for growth-orientated businesses.

In Report for the Workshop on ‘Skills Development for SMEs and Entrepreneurship (Vol.

28). Retrieved from https://bit.ly/36b4DTJ [Accessed 8 November 2021].

Academic journal article 2

Turyakira, P. & Mbidde, C.I. 2015. Networking for SMES in Uganda: A conceptual paper.

African Journal of Business Management, 9(2): 43-49. Retrieved from https://bit.ly/3oITBLK [Accessed 9 November 2021].

Academic textbook

Chapter 15 – ENTRENEURSHIP An African Perspective

Cecile Nieuwenhuizen. 2019. The identification of business ideas. [Accessed 9

November 2021]