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    SAURAV SAURAV
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    The document discusses entrepreneur networks and how they can provide resources to entrepreneurs. It defines entrepreneur networks as socioeconomic processes where business people can form relationships, share opportunities and information, and find potential partners. Social networks are made up of individuals and organizations connected by relationships. Networking allows entrepreneurs to access resources, build trust and signals, and gain power and control. Strong and weak ties both have benefits for accessing different resources. The reasons for networking include gaining strategic capital like partners and customers, cultural capital like knowledge, and economic capital like funding. Networking is important for both new startups and existing businesses.

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    The document discusses entrepreneur networks and how they can provide resources to entrepreneurs. It defines entrepreneur networks as socioeconomic processes where business people can form relationships, share opportunities and information, and find potential partners. Social networks are made up of individuals and organizations connected by relationships. Networking allows entrepreneurs to access resources, build trust and signals, and gain power and control. Strong and weak ties both have benefits for accessing different resources. The reasons for networking include gaining strategic capital like partners and customers, cultural capital like knowledge, and economic capital like funding. Networking is important for both new startups and existing businesses.

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    16 views26 pages

    6 Entrepreneur Networks. Final Ver

    Uploaded by

    SAURAV SAURAV
    The document discusses entrepreneur networks and how they can provide resources to entrepreneurs. It defines entrepreneur networks as socioeconomic processes where business people can form relationships, share opportunities and information, and find potential partners. Social networks are made up of individuals and organizations connected by relationships. Networking allows entrepreneurs to access resources, build trust and signals, and gain power and control. Strong and weak ties both have benefits for accessing different resources. The reasons for networking include gaining strategic capital like partners and customers, cultural capital like knowledge, and economic capital like funding. Networking is important for both new startups and existing businesses.

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    of 26

    Entrepreneur Networks

    •Abdul is very ambitious person


    and wants to expand his
    business.
    •May be he is resourceful person
    but wants to utilize his resources
    optimally.

    Resources :
    •Financial
    •Technical
    •Marketing
    •Supplier
    •Distributors
    NETWORK
    • Entrepreneurial network is socioeconomic business process, offering
    different types of resources to start or improve entrepreneurial
    projects.

    • In this process business people and entrepreneurs meet to:


     form business relationship and
     recognize, create, and act upon business opportunities,
     share information and seek potential partners for ventures.
    Social Networks:
    • The entrepreneur is embedded in a social network that plays a critical
    role in the entrepreneurial process (Aldrich and Zimmer, 1986).
    • Social Networks are defined by a set of actors (Individual or
    organization) and a set of linkage between the actors ( Brass, 1992)
    What is Networking
    Elements of Networks
    • Content: The nature of the content that is exchanged between the
    actors
    • Governance: Governance mechanism in relationships
    • Network Structures: Created by crosscutting relationship between
    actors.
    Weak tie formation
    • 6 degrees of separation* • Communities (of practice etc.)
    • Social networks
    • Meetups

    • Build outward
    • Go for diversity, not volume
    • Identify and use “hubs”
    (people who are great n’workers and can
    introduce you)
    & willingness to connect
    (Fischer, E., & Reuber, A. R. (2011). Social interaction via new social media:
    (How) can interactions on Twitter affect effectual thinking and behavior?
    Journal of Business Venturing, 26(1), 1-18.)
    Strong tie formation
    • GIVE YOUR CLIENTS A PERSONAL
    CALL. Find out how things went with the project
    you were involved in. Ask if there's anything else
    you can do to help. Important: do not ask for a
    referral at this point.

    • CALL ALL THE PEOPLE WHO HAVE


    REFERRED BUSINESS TO YOU. Ask them how
    things are going. Learn more about their current
    activities so you can refer business to them.

    • LIST 50 PEOPLE TO STAY IN TOUCH WITH. 


    Send them cards on the next holiday.

    • FOLLOW UP. Two weeks after you've sent cards


    to your contacts, call them and see what's going
    on. If it is a former client - perfect time to ask for
    a referral. If it's a prospect – try set up an
    appointment.
    Strong, weak, absent?
    To hole or not to hole
    How do networks look like?
    • Relational networks: direct interaction is main
    mechanism
    - a group of co-workers
    - friends in a bar
    - classmates
    - direct clients and direct suppliers
    • Positional networks: brokerage, centrality, or range
    - brokering between house sellers and house buyers
    - centrality defining relative number of received
    contacts
    - range defining how far a network is connected
    How do relational networks look like?
    Why do we network?
    BENEFITS / OUTCOMES
    ACCESS TO POWER/
    TRUST SIGNALING
    RESOURCES CONTROL
    Strategic Capital
    • Strategic capital is a critical element of Intangible
    capital. It can be both an asset and a liability--it all
    depends on how stakeholders view the performance of
    your strategic capital.
    The core focus of strategic capital:
    a)Human capital
    b)Structural capital (processes, systems, knowledge)
    c)Relationship capital including customers at the core of
    your value proposition and partners who support your
    ability to deliver.
    Economical Capital
    • Economic capital is the amount of risk capital,
    assessed on a realistic basis, which a firm requires
    to cover the risks that it is running or collecting as a
    going concern, such as market risk, credit risk, legal
    risk, and operational risk.
    • Economic capital is the amount of capital that a
    firm, usually in financial services, needs to ensure
    that the company stays solvent given its risk profile.
    Economic capital is calculated internally, sometimes
    using proprietary models, and is the amount of
    capital that the firm should have to support any
    risks that it takes.
    Social Capital
    • Who you know well enough to
    trust for advise or have
    confidence into get things done
    efficiently and effectively.
    • The set of resources tangible or
    virtual, that accrue to a
    corporate player through the
    players social relationships,
    facilitating the attainment of
    goals (Gabbay et. al 1999)
    Cultural Capital
    • Cultural capital refers to the
    social assets of a person
    (education, intellect, style of
    speech and dress, etc.) that
    promote social mobility in a
    stratified society
    Why do we network in startup ?
    Strategic capital for: partners with congruent goals spinoff-university
    high prestige partners for influence experienced entrepreneur
    view on & protection of competititors business intelligence / patent
    influencing clients & suppliers lead customer /first tier supplier
    cultural capital for: knowledge integration co-developer
    organizing methods
    certification of processes
    comparing values & norms (CSR)
    economic capital:pitching for FFF & formal investors
    searching buying power
    arranging cash flow/loans/subsidy
    Social capital: new contacts
    intensifying contacts
    getting structural position
    Why do we network in existing business ?
    Strategic capital for: Alliances: Partners with congruent goals
    Lobbying: high prestige partners for influence
    Marketing: view on & protection of competititors
    Marketing: influencing clients & suppliers
    Cultural capital for: Innovation: knowledge integration
    continueous improvement
    certification of processes
    comparing values & norms (CSR)
    economic capital:Co-maker/supplier: efficient production network
    transactions with suppliers/customers
    corp. Finance: cashflow/loans/subsidy/investment
    Social capital: maintaining contacts
    intensifying and new contacts
    maintain and develop structural position
    The network success hypothesis

    The network success hypothesis states that founders


    can gain access to resources more cheaply by using
    their network contacts than by using market
    transactions, and that they can even acquire
    resources from the network that would not be
    available via market transaction at all.
    Conclusion
    • Burt argues that network reach in structural holes create social capital
    for an actor, whereas conversely Coleman argues that closure does.
    • Structural holes and closure are complementary rather than
    competing mechanism (Burt).
    Further Readings:
    • Zaheer A. Et.al (2010) “It’s the connections: The network perspective in
    Interorganizational Research”, Academy of Management Perspectives,
    24(1):62-77
    Thanks
    Comments
    Suggestion
    Questions ?

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