Networking

All people are networking, but some people are networking more than others. In this case we will try to find out how important networking is for entrepreneurs and try giving them useful guidance of how to build and deal with networking.

Based on our experiences, we see that networking is more important to entrepreneurs (prospective starters, independent starters, job-related starters, owner-managers, business angels, former owner-managers) than to other people, but also that the importance of networking differs according to different types of entrepreneurs. Networking is mostly important to business angels and less important to owner-managers. Furthermore, we know that networking is a powerful predictor of people being entrepreneurs or not – networking is the second most powerful predictor after competence required to start a new business and more important than other significant variables as risk-willingness.

Entrepreneurs’ networks or relations include both encouragement and criticism, but still most entrepreneurs perceive most of their relations as encouraging. Critics arrive more often when the entrepreneurs are talking to consultants or others about starting their business, compared to when they are talking to family, friends or colleagues.

Further, critics arrive more often when entrepreneurs are talking about organizing or financing the business, compared to situations where they discuss the business idea within their close circle.

Networking can be a fun and easy way to develop your life, expand your opportunities, and enhance your career. But, it can also be potentially devastating if you act rudely, insensitively, or ignore the needs and desires of others. Remember, crucial to your success is that you treat networking as an exchange of ideas, information and experience.