Entrepreneurial Marketing Networking CANVAS-1 PDF

Networks and Networking 7BUS2073 21st Feb 2024 This session… Networks Networking Theories and frameworks about their role in entrepreneurship Benefits at different stages of business ideas Luck? NETWORKS AND NETWORKING Networks and networking are both key topics in entrepreneu...

Networks and Networking 7BUS2073 21st Feb 2024 This session… Networks Networking Theories and frameworks about their role in entrepreneurship Benefits at different stages of business ideas Luck? NETWORKS AND NETWORKING Networks and networking are both key topics in entrepreneurship Relevance: 1) To improve both your understanding of the importance of networking and your ability to network with others. This will be useful for your Individual Project/Pitch. 2) To equip you with knowledge of the role of networks in entrepreneurial marketing so that you can apply this in your reflective essay.  Opportunity recognition Knowledge and skill e.g. Management/Business experience, Qualifications, experience working on a specific market segment/ in a specific Entrepreneurial industry… alertness “Entrepreneurial alertness refers to the ability to process information and signals from the environment so that individuals can recognize business opportunities” Networks (Montiel-Campos, 2021) Chapter 4 ‘Creativity and the Business Idea’ BY Ability to interact and effectively Hisrich Peters Mc. Graw-Hill/Irwin Copyright © communicate with others, to 2010 by The Mc. Graw-Hill Companies, Inc. build supportive networks, to secure key alliances, to make A MODEL OF ENTREPRENEUR SUCCESS: LINKING THEORY AND PRACTICE, LIMSONG, S. PUBLISHED 2016. Limsong, S (2016) TOWARDS A PSYCHOLOGY OF ENTREPRENEURSHIP - AN ACTION THEORY PERSPECTIVE. FOUNDATION AND TRENDS IN ENTREPRENEURSHIP, 5(6), 437-496, FRESE, M.  WHAT IS THE DIFFERENCE? NETWORKS VS NETWORKING NETWORKS – A DEFINITION THE NETWORK IS A SOCIAL STRUCTURE, COMPRISED OF A SET OF RELATIONSHIPS BETWEEN A SET OF INDIVIDUALS, WHICH IS VIEWED AS BEING ‘GREATER THAN THE SUM OF ITS PARTS. (CARTER JONES-EVANS, 2006) “YOU NETWORK IS YOUR NET WORTH” “IT’S NOT WHAT YOU KNOW BUT WHO YOU KNOW.”  It is important to remember that we are all connected to someone we do not know yet via those we do. SOCIAL Therefore the real reach of our networks is far beyond that which is CAPITAL visible. Hayes (1996) notes that networks hold an enormous amount of skills and information and refers to the people in them as ‘Social Capital’.  NETWORKING DEFINITION THE ACTION OR PROCESS OF INTERACTING WITH OTHERS TO EXCHANGE INFORMATION AND DEVELOP PROFESSIONAL OR SOCIAL CONTACTS. (CARTER JONES-EVANS, 2006) 5 NETWORKING TIPS 1. DO: BE AUTHENTIC 2. DON’T: BE TOO AGGRESSIVE 3. DO: LISTEN MORE THAN YOU TALK 4. DON’T: FORGET TO FOLLOW UP 5. DO: BE PROFESSIONAL SOURCE: BNA.COM  WHY IS THIS IMPORTANT? TO BEST FACILITATE CONDITIONS FOR ECONOMIC DEVELOPMENT, RESEARCHERS HAVE BEEN OCCUPIED WITH QUESTIONS SUCH AS: DO ENTREPRENEURS HAVE SPECIAL SKILLS AND BEHAVIOURS/CHARACTERISTICS? OR CAN ANYONE SET UP IN BUSINESS, WITH THE RIGHT SUPPORT? ATTENTION HAS PARTLY COME TO FOCUS ON THE ROLE OF NETWORKS IN SUCCESSFUL ENTREPRENEURIAL AND BUSINESS DEVELOPMENT.  NETWORKING RESEARCH MORE THAN 20 YEARS OF ACADEMIC RESEARCH HAS TIED BUSINESS NETWORKING TO ENTREPRENEURIAL SUCCESS RESEARCH HAS SUGGESTED THAT ENTREPRENEURS HAVE ON AVERAGE TWICE THE NUMBER OF ONLINE NETWORK CONNECTIONS AS NON-ENTREPRENEURS. ALTHOUGH THE RAW SIZE OF AN ENTREPRENEUR’S NETWORK DOES NOT NECESSARILY CORRELATE WITH STARTUP SUCCESS, ENGAGEMENT WITH A TIGHTLY CONNECTED SUBSET OF THAT NETWORK DOES. AN MIT STUDY DEMONSTRATES THAT UNIVERSITY-EDUCATED ENTREPRENEURS WHO HAD LARGE, ACTIVE ALUMNI NETWORKS WERE MORE SUCCESSFUL IT’S NOT ENOUGH TO JUST HAVE A NETWORK; HOW YOU USE YOUR NETWORK IS IMPORTANT, AND TRUSTED CONTACTS CAN BE PARTICULARLY HELPFUL AT OVERCOMING EARLY CHALLENGES. SOURCE: HTTPS://WWW.CHICAGOBOOTH.EDU/REVIEW/NETWORK- ENTREPRENEURS-BEST-ASSET NETWORKS ARE BASED ON PERSONAL RELATIONSHIPS RECIPROCITY TRUST SELF-INTEREST REPUTATION Dubini and Aldrick (1992), Larson (1992) (Cited in Burns, 2011)  THE IMPORTANCE OF NETWORKS NETWORKS ENABLE ENTREPRENEURS TO BRING IN MORE CUSTOMERS BY DEVELOPING RELATIONSHIPS BASED ON TRUST AND RECIPROCITY UNDERSTAND NEW MARKETS AND FIND CONTACTS TO HELP IN NEW MARKETS KEEP UP TO DATE ON CHANGES IN THE MARKET PLACE BE INFORMED ABOUT INNOVATION IN THEIR SECTOR AND DEVELOP PARTNERSHIPS TO EXPLOIT OPPORTUNITIES DEVELOP CONFIDENCE IN THEIR ABILITIES THROUGH Burns (2011) SUPPORT FROM LIKE-MINDED INDIVIDUALS  DIFFERENT TYPES THE SOCIAL NETWORK - FAMILY, FRIENDS. PROFESSIONAL NETWORK - CONTACTS MADE THROUGH BUSINESS ACTIVITIES. ARTIFICIAL NETWORKS - SET UP WITHIN BUSINESS COMMUNITIES WHICH ARE OPEN TO NEW MEMBERS- TRADE ASSOCIATIONS, PROFESSIONAL INSTITUTIONS  ‘EFFICIENT NETWORKS THAT FOSTER GOOD RELATIONS BETWEEN FIRMS CONTRIBUTE TO ENTREPRENEURIAL SUCCESS’ (DEAKINS AND FREEL 2002:169)  Environmental scanning – looking for opportunities SOME OF THE Acquiring essential resources – cost effectively BENEFITS OF Potential route towards achieving NETWORKIN innovation without expensive R&D G Early marketing (particularly among personal contacts)  SOCIAL NETWORKS SOFTER BENEFITS- CREDIBILITY, LEGITIMACY,ADVICE PROBLEM SOLVING, MOTIVATION, INSPIRATION, CONFIDENCE PROFESSIONAL/ARTIFICIAL NETWORKS BENEFIT HARDER BENEFITS -CUSTOMERS, S INVESTORS,PARTNERS,SUPPLIERS,EMPLOYEES, SPECIALIST SKILLS, INDUSTRY KNOWLEDGE/INFORMATION  THE ROLE OF DIFFERENT TYPES BIRLEY (1985) FOUND THAT IN THE US ENTREPRENEURS RELIED ON THOSE IN THEIR SOCIAL NETWORKS FOR ADVICE DURING CONCEPTUALISATION. HELPFUL SUPPORT IN GATHERING RESOURCES, INFORMATION, REASSURANCE, ADVICE AND ‘SOUNDING OUT’ THE IDEA.  DEVELOPMENT OF NETWORKS IN THE EARLY PHASES OF ENTREPRENEURSHIP, THE NETWORK OF FRIENDS AND FAMILY ARE PARTICULARLY IMPORTANT AS THE ENTERPRISE DEVELOPS THE NETWORK GROWS AND MORE FORMAL BUSINESS RELATIONSHIPS ARE DEVELOPED Birley and Cromie, 1988, Jarillo, 1989; Birley et al, 1991, Larson and Starr, 1993; Donckels and Lambrecht 1997; Hite and Hesterly, 201; Greve and Salaff, 2003  GROWTH STAGE No real role for networking groups to provide the softer benefits The focus for the entrepreneur is for the hard benefits Now this firm becomes the centre of a web of inter-firm relationships, with resource providers around the edge  ‘…THE NETWORK IS THE PRODUCT OF A DETERMINED ENTREPRENEUR, BENT ON OBTAINING THE MOST EFFICIENT ORGANISATIONAL ARRANGEMENT TO COMPETE IN HIS OR HER CHOSEN MARKET.’ JARILLO, C J (1998) WIT, B AND MEYER, R. (EDS). (2000) STRATEGY, PROCESS AND CONTENT ,2ND EDITION, THOMSON BUSINESS PRESS  ‘THE STRENGTH OF WEAK TIES’ Mark Granovetter, a social scientist also writing in the early eighties, coined the phrase the ‘Strength of Weak Ties’. He was referring to the amount of contacts that the unemployed had, outside of their close ties. Those that had numerous weak ties did much better in finding employment through word of mouth than those with tight family groups, and little other social interaction (Granovetter, 1982).  OTHER SUCCESS FACTORS? LUCK? MAXIMISE YOUR CHANCE OPPORTUNITIES LUCKY PEOPLE CREATE, NOTICE AND ACT UPON THE CHANCE OPPORTUNITIES IN THEIR LIFE. SO THEY… BUILD AND MAINTAIN A STRONG ‘NETWORK OF LUCK’ MAINTAIN A RELAXED ATTITUDE TOWARDS LIFE KEEP OPEN TO NEW EXPERIENCES IN THEIR LIVES (WISEMAN 2003 CH2)  USEFUL REFERENCES/FURTHER READING BIRLEY,S. ‘THE ROLE OF NETWORKS IN THE HAYES, R. (1996) SYSTEMATIC NETWORKING: A GUIDE ENTREPRENEURIAL PROCESS’ JOURNAL OF BUSINESS FOR PERSONAL AND CORPORATE SUCCESS. LONDON: VENTURING 1995 VOL.1 CASSELL. DEAKINS, D. AND FREEL, M. (2002) JARILLO, C J (1998) WIT, B AND MEYER, R. (EDS). (2000) ENTREPRENEURSHIP AND SMALL FIRMS, 3RD EDITION. MCGRAW HILL STRATEGY, PROCESS AND CONTENT ,2ND EDITION, THOMSON BUSINESS PRESS FISCHER, C (1982) TO DWELL AMONG FRIENDS: PERSONAL NETWORKS IN TOWN AND CITY. CHICAGO: MCCONNELL, D. (1990) MAPS, MASSES AND MISSION. UNIVERSITY OF CHICAGO PRESS. EFFECTIVE NETWORKS FOR URBAN MINISTRY, BIBLE GRANOVETTER, M. (1982) THE STRENGTH OF WEAK COLLEGE OF VICTORIA. TIES: A NETWORK THEORY REVISITED. IN SOCIAL STRUCTURE AND NETWORK ANALYSIS, RIDDLE, D. ‘NETWORKING SUCCESSFULLY’ MARSDEN, P AND NAN LIN (EDS). BEVERLEY HILLS: SAGE PUBLICATIONS INTERNATIONAL TRADE FORUM 1988 ISSUE 3. HALLIDAY, S. (2011). RELATIONSHIP MARKETING AND WISEMAN, R., (2003), THE LUCK FACTOR: CHANGE YOUR NETWORKS IN ENTREPRENEURSHIP. IN LUCK - AND CHANGE YOUR LIFE, CENTURY, LONDON. ENTREPRENEURSHIP MARKETING: PRINCIPLES AND PRACTICE OF SME MARKETING. S. NWANKWO AND A. GBADAMOSI. LONDON, ROUTLEDGE: 230-253