Entrepreneur's Handbook
THE IMPORTANCE OF NETWORKING IN ENTREPRENEURSHIP
Creating an effective environment is of great importance for all ages and occupational groups. However, according to Belen and Demirkaya (2013), networking is not a choice for entrepreneurs, but a competence that must be developed. So much so that the cooperation between two people who do not know each other can only develop based on trust after the fifth meeting. Whereas, a 30% increase in cooperation was observed when a common acquaintance introduced two people by phone or e-mail, and 60% when they joined the first meeting.
The result of the research above shows us how patience it takes to build trust in the process of establishing effective relationships. Therefore, there is a serious time difference between an entrepreneur getting results in the fifth or second encounter. Time is another capital of the entrepreneur as important as money.
The relationship building process is also critical for entrepreneurs at the beginning of the road. The concept of "Angel Investment", which has emerged recently, represents the business world that invests in the business ideas of entrepreneurs. In other words, effective relations for the entrepreneur who is looking for capital for the business idea now come before money.
1.1. What is Networking?
Networking without a target is like believing only coincidences in relationships. However, an entrepreneur has to create his own chance. In summary, a non-purpose networking approach is usually a waste of time. Let's examine the actions required for the entrepreneur to set the networking goal and vision:
1.1.1. Sharing information
According to the data of the Global Information Industry Center (2010), the human brain records 34 gigabytes of information and images every day, equivalent to a capacity of 100,500 words. People only remember the subjects and people that interest them. However, information that an entrepreneur thinks is not useful today can gain great importance for himself and his environment tomorrow.
Moreover, another study published by the University of Michigan (2011) shows that the environmental factor, also called social capital, is mostly created by those who constantly share information with those around them. Some examples of information sharing can be listed as follows:
- Getting people to meet others
- An opportunity sharing
- Information before an important meeting
- Sectoral news and developments
- A useful book recommendation
This list can be easily extended. However, the common feature of all of them is that the shared information creates benefits for the entrepreneur's environment. In order to achieve this, the entrepreneur must get to know his environment more closely. Before saying "what can I get" from my environment, it is essential to think about "what can I give" to my environment. In other words, the entrepreneur should get to know his environment more closely, understand his needs and present the information he believes will benefit them without waiting for a response. Thus, after a while, he will begin to see the same approach from his environment.
Sharing information is one of the most important approaches in networking to build trust and strengthen cooperation.
1.1.2. Meet and Introduce
To better understand the definition of meeting and introducing in the business world of networking, it is necessary to look at the history of the concept. The Industrial Revolution that took place in the 18th and 19th centuries was the beginning of a period when institutions were not sufficient alone and needed a wider network of cooperation.
Institutions have realized the importance of moving forward with experts in many fields from raw material procurement to processing, finishing, sales, distribution and service of products.
The symbol representing the concept of Networking, which has been used frequently since the 1970s, has been the spider web.
The spider web analogy can be explained as follows: There is only one way to go from one point to another on the web. The desired destination can be reached from many different directions. This analogy actually symbolizes that progress cannot be prevented even if there are tears on a network. Such are the relationships established with trust in the business world and entrepreneurship. In other words, it is not possible for the entrepreneur to know everyone directly. However, an effective environment allows it to be introduced and the acquaintances to cooperate with their acquaintances.
For example, an entrepreneur looking for investment may not have any investors to directly call. Unfortunately, many people give up in such a situation. According to the research of Bradley and Tennessee Universities (2014), the number of ventures that could not make their third year is 44%. Because these ventures are the ones that cannot reach the right people during critical processes such as consulting ideas, mentoring and getting investments. In this direction, the entrepreneur should be able to examine his environment well in the business idea phase. He must detect the shortcomings and make a move before the last minute. When starting the act of meeting, she should act with the family and close circle who trusts her most. Meeting their acquaintances should be the first step.
The entrepreneur will not only make a request during the meeting and introduction process. As mentioned above, it will also support its environment by sharing information.
In the following sections, the tips of getting acquainted and introduced will be explained. In time, the introduction of the entrepreneur to those around him will be essential for the continuity of his success.