WBB 10102- Technopreneurship

Topic 9: Business Networking

The success of running the business is greatly dependent on the support that the
technopreneur gains from the various parties through establishing a good relationship or network.
The technopreneur should realise that networking is a business tool that plays a very significant
role in the success of the technopreneurs.

If technopreneurs have very effective networks with both external and internal customers, it
will be easier for them to gain business opportunities and settle some of the problems related to
their businesses. A good networking relationship will enable them to gain support and
cooperation from the networking circle. Among those in the networking circle are clients,
suppliers, creditors, distributors, marketers, competitors arid those who have direct or indirect
relationship with their business. Therefore, every technopreneur should develop networking skills
as it will act as a catalyst to achieve business goals and objectives.

WHAT IS NETWORKING?

o Networking is a group of people with links to one another. These links may be due to similar
job situations, career activities, friends, neighbors, school, communities, religious activities,
and so on. A network is a support of people that you can reach out to for help, support,
advice, or friendship. A network is an intricate web of people who are related in some way
and thus connected to each other directly or through the links of other people in the network.

o Networking is as simple as friendship. It is about people sharing and caring for one another.
People become friends because they share certain thing in common and connect with each
other in the ways that are pleasing to both people. Over time, friendship tend to grow and
deepen. Friends provide support, information, and comfort and add fun to one another lives.
Friends also typically introduce their friends to their other friends, interest, hobbies, and
businesses. This type of introduction is networking operating at its most natural level.

o Networking is the passing along of information, ideas, and contacts from one person to
another, and then possibly to more people. Every time someone shares an idea or contact
with you, you are on the receiving end of networking. Every time you give someone support,
encouragement, or recommendation, you are giving end of networking.

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o Network position is both an outcome of a past relationship strategy and a resource for future
strategy. According to Dubini and Aldrich (1991), networking is defined as a process of
widening mutual technopreneur relationship as an important mechanism to achieving
personal success and expanding business. This mutual relationship will provide rights and
obligations which are the result of the resources which the company initially brought to the
network, the experience it has gained and the investment it has made in its relationships.

ADVANTAGES OF HAVING GOOD NETWORKING

Among the advantages gained by the technopreneur through having a network are:
1. Accessibility
Networking is very important for the technopreneur to gain either tangible or intangible
resources directly or indirectly. Among the tangible resources are financial support, transfer of
technology and accessibility in gaining information to produce the right product at the right cost
and right time demanded by the market. On the other hand, the intangible resources are moral
support, guidance and confidence given by various groups to the technopreneur in operating his
business.

2. Reputation
Reputation refers to the ability whereby the technopreneur may have to exercise leadership,
or may have to influence the decision making of other network members, based on the expertise
that they have. Through good reputation, the technopreneur will be able to attract members in the
networking circle to give priority to the products or services produced by them.

3. Expectations
These can both facilitate and restrict the freedom of action in a company. For example,
network members may have the expectation that a particular company will effectively set prices
for a number of other companies. On the other hand, a company may be expected not to take
advantage of product shortages by raising prices or to conform to conventional competition or to
set higher ethical standards than others.

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WHAT IS STRATEGIC NETWORKING?

Being strategic means the technopreneur is envisioning the future and taking the necessary
steps to create that future. Strategic networking, then, is gaining clarity on entrepreneurial goals
and objectives to be achieved in running the business by utilising their interaction with others and
determining the best action that should be taken. While it is tempting to jump into action, it is
essential for the technopreneurs to understand where they are now and where they want to go.
Successful networking is a result of proper planning. The technopreneur needs to find ways and
means to create good networking and gain maximum benefit from it.

According to Dollinger (1996), strategic networking is a process of widening the confidence

among technopreneurs and other interested parties as both sides will gain financial and non
financial benefits. As a result networking should be one of the core marketing tactics of most
independent professionals and small business owners. The technopreneur may use client-
centred networking to lessen their reliance on costly and time-consuming efforts in getting and
distributing information. Over time, this business building strategy will reward the technopreneur
with a steady stream of new clients besides maintaining the existing ones.

TYPES OF NETWORKING

According to Holt (1992), there are two types of networking in technopreneurship:

1. Personal Networking
Personal networking based on childhood friendship, having the same interest or hobby with
people, or having a family relationship. Through personal networking the technopreneur will be
able to discuss about his/her business informally, or without making an appointment.
Personal networking provides the opportunity for the technopreneurs to gain new information
or exchange information. Services provided by social networking members are usually free of
charge or with minimum charges. Usually personal networking will enable technopreneurs to get
opinions, advice, moral and financial support. Such support will help them to be more confident
and increase their ability to make effective decisions and minimise business risks (Please refer to
Figure 9.1.)

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Figure 9.1: Personal Networks (Extract from Holt, 1992)

2. Social Networking
The social networking is the existing relationship between various people who have a
symbiotic relationship with the technopreneur. Those who have networking correlation will be
prepared to take the initiative to create business opportunities and solve the problems they face
in the networking chain. Every member in the networking circle is ready to share their experience
and strength for mutual advantage. Members in a social networking circle are as shown in Figure
9.2 on the following page.

Figure 9.2: Social Networks (Extract from Holt, 1992)

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THE IMPORTANCE Of' NETWORKING

Networking plays an important role in determining the success of the technopreneur. The
ability of the technopreneur to establish a network will give him a competitive advantage over the
others. Among the importance of networking are:

1. Build confidence
In business, the technopreneur may face uncertainties like loss in investment, competitors
and products not being able to penetrate into market. All this uncertainties can be reduced by
having a good network. The technopreneur may obtain reliable information related to his
business such as investment opportunities, identifying market share and producing the right
product. Networking also helps the technopreneur to face the changes in the business
environment such as:
a) Changes in competitors' strategies
b) Demographic changes
c) Changes in customers' satisfaction
d) Changes in government and companies policies

2. Reduce bureaucracy
Rigid bureaucracy will delay the process of business activities. Networking will enable
technopreneurs to reduce red tape in decision making through:

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a) speeding up the application process

b) saving time, finances and other resources
c) avoiding them from doing wrong things continuously
d) avoiding the 'passing the buck' phenomenon
e) the use of discretion in implementing policies and procedure

3. Increase information
Networking will increase the technopreneur's reputation as everybody in the networking circle
will know what the technopreneur is doing. At the same time information like who is who in the
networking circle will enable the technopreneur to get the right information to be utilised for the
progress of his business.

4. Develop trust
Trust is one of the most important factors in establishing a network. With this trust, members
in the networking circle will be prepared to give priority to the technopreneur's products or
services in their buying decision. Besides that, they are prepared to promote those products or
services through word of mouth. For example, as a result of their good relationship with suppliers,
technopreneurs will gain longer credit terms from their suppliers, discounted prices and are given
priority when getting materials.

5. Dependent situation exists

The success of the technopreneur greatly depends on contribution from others. So in running
the business, everybody depends on the other. So, the technopreneur should ensure that his
involvement in business will provide benefits to others. Therefore all technopreneurs should work
with others through a symbiotic spirit and adopt a give-and-take attitude in order to develop a
good networking relationship.

6. Source of creativity
Networking is also a source of creativity for the technopreneur in operating the business.
Various groups in the networking circle will help to find new ideas to create new products or
services, new ways of producing and marketing it. Besides that, members in the networking circle

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will provide new business opportunities. All these ideas may come from friends, workers,
customers and distributors. Therefore, with support and various contributions from the network
circle the technopreneur will be able to:
a) Improve product quality
b) Improve distribution techniques
c) Improve techniques of production
d) Improve better after-sales services
e) Suggest new ways of promoting the products
f) Help to explore new products and services or modify the existing one
g) Provide latest trends, designs and fashion needed by the market

HOW TO ESTABLISH STRATEGIC NETWORKING FOR THE TECHNOPRENEUR

1. Create good planning

To be a success in the technopreneurial process the technopreneur needs to have good
planning. Each planning must start by questioning what goal they want to achieve, what strengths
and weaknesses they have and why technopreneurs need such networking.

2. Ask yourself
Every technopreneur must draft his plans on networking. He must ask himself what he wants
and how many networking relationships he wants in one month. Then he must identify his
customers, what kind of businesses are offering profits and what contributions he can make to
the people.

3. Learning networking techniques

As a technopreneur, he must attend association meetings. It is imperative to be a member in
an association. Identify business associations, sports associations and computer associations.
Although networking is good for the business, the technopreneur must bear in mind that they
cannot waste their time establishing networks and that they must find alternative methods to

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succeed. They also have to choose the best association that can give him benefits. And in return
he can also contribute to that association. Identify people who can contribute to the business and
then communicate with them to get more information. Send e- mails or letters to appreciate them.

4. Implementing planning
a) As a technopreneur, he must attend every business meeting, and note every important
matter that arises.
b) The technopreneur must value his time. He must attend to the more important matters.
c) Don't criticise others.
d) He must be prepared to challenge his ability in implementing a good plan.

STRATEGIC NETWORK CONSOLIDATION

This strategy is a technique in developing a relationship between technopreneurs to create a

good network. A good relationship with other people could help us to make good changes. This
strategy also helps technopreneurs to overcome the changes.

1. Strategic network consolidation

This strategy is a technique in developing a relationship between the technopreneur and
other people whom they have dealt with before and whom they will be dealing with in the future.
This consolidation technique is to be kept fresh in their mind. In addition, the technopreneur also
makes an effort to remember other people although they don't have any business dealings with
them now. There are many ways to develop strategic networking consolidation:
o Fulfill invitations o Giving souvenirs
o Visits o Sending cards
o Participation in formal and informal o Sending congratulatory cards
functions o Sending condolence cards
o From third person

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o Sending cards to keep in touch with o Business cards .

the customer o E-mailing
o Invitation cards o Facsimile
o Sending letters o Phone calls
o Replying letters

2. Developing self confidence strategy

Technopreneurs must show their expertise, capacity, personality and skills when given
responsibility. They should also show they are responsible and the person who entrusted them
with the responsibility will be satisfied and have the confidence to give them more responsibility in
future. In anything that they do, the technopreneurs must always show they have some unique
qualities in them that others don't possess.

BARRIERS IN BUILDING A STRATEGIC NETWORK

According to Ab. Aziz Yusof (2000), there are five main barriers, which must be avoided by
technopreneurs when building an effective network strategy. If they fail to build an effective
network strategy, they will also fail to communicate their goals and objectives.

First, technopreneurs must take the initiative to identify their weaknesses. The ability to
identify their weaknesses will greatly influence their success in building effective networking. The
five barriers that have been identified are:

1. Emotional
This barrier originates from within the technopreneurs themselves. It is closely associated with
characteristics, personality, prejudices and the ego of the technopreneurs. As a result of this
barrier a social gap between the technopreneur and other individuals will be created, thus
jeopardising their relationship. Emotional barrier includes:

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o Aggressiveness
o Fear of making decisions or taking risks
o Dominating a situation - as if they are leaders
o Hasty attitude
o Always wanting to show that they are better than others
o Being too proud or arrogant of themselves
o Perfectionist mentality
o Wanting to always be the leader
o Not being punctual
o Not wanting to admit to their mistakes
o Not wanting to acknowledge the ability of others

2. Physical outlook
In this instance, "first impressions" do count. An individual is likely to have less confidence in
an technopreneur if at their first interaction, the physical outlook of the technopreneur "puts him
off'. It is assumed that the physical state of the technopreneur will speak volumes of how the
technopreneur conducts his business. People may assume their poor physical condition, will
mean poor state of business. Physical barriers include:

o Not properly attired

o Unhealthy look
o Lack of self management
o Nervousness
o No eye contact when talking to others
o Unfriendly disposition
o Too much body language when communicating
o Talking in a high tone
o Showing of their strengths

3. Psychological
Psychological barriers will determine the technopreneur's effectiveness while interacting with
other people. It will also affect the individual's judgement of other individuals. Psychological

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barriers in individuals make them feel lonely and thus develop an inferiority complex. Their
actions become unstable and they have difficulties forming an effective network. An
technopreneur with a good psychological background will exhibit positive vibes that will convince
others to have the confidence that "he knows what he is doing". In fact, such an technopreneur is
also able to generate good ideas. Psychological barriers include:
o Not prepared to recognise the strength that they have
o Not prepared to make decisions
o Hatred towards others
o Frustrated
o Always failing to do something
o Divergence of character
o Too shy
o Wanting to be accepted by everyone
o Always wanting to be the first
o Always wanting to succeed
o Over passionate
o Not wanting to express their problems

4. Behaviour
The way technopreneurs behave and interact with others will determine how close or how
distant they are with others. Among these behaviour that had been identified are:
o Talking bad about people
o Careless in making decisions
o Always wanting to be the first
o Always wanting to be a leader
o Teasing other people
o Pretending to know everything
o Thinking that they can never make mistakes
o Reluctant to accept the opinions of others

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o Not willing to appreciate contributions by others

5. Expressions
The way technopreneurs express themselves to others can either help them or work against
them. An technopreneur may have the best ideas in the business - but if he expresses himself
badly, he will fail to get the full cooperation of those in the network circle.
The following are examples of expressions that an technopreneur should avoid:
o Dominating
"You must finish the work..."
"Why aren't you doing the work given!!!"
"Don't do what I do, but do what I ask you to do!"
"You were asked to do the job, not to think about the job."
o Sarcasm
"Such an easy task and you can't even finish it in two days!"
"He doesn't know anything but acts like he knows everything in front of the boss!"
o Inferiority complex
"I'm just a fishermen's daughter. I can't do this business."
"Who wants to help people like me?"
o Egoistic
“I can ensure you that I can do the job, because I have ten year’s experience!!!’
‘I’m expert in this, please don’t question my decisions’

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