Dr David Bozward

Category: Entrepreneurship Theory

The blogs in the “Entrepreneurship Theory” category explore the conceptual foundations underpinning entrepreneurial activity—going beyond “how to start a business” to ask why, how, and under what conditions entrepreneurship emerges and scales. They tackle topics like social and network capital, the role of collective self‑efficacy, and the diversity of entrepreneurial pathways (e.g., discussing “the five types of student entrepreneur”). They examine how individual attributes (such as risk‑tolerance, mindset, and resources) interact with environmental factors (such as economy, sector, and ecosystem). The series emphasises the pedagogical and research‑based side of enterprise education: how we teach, conceptualise and evaluate entrepreneurship. In doing so, these blogs provide academic entrepreneurs, policy‑makers and educators with meaningful lenses through which to view enterprise—not just as a business venture but as a dynamic, socially embedded phenomenon.

  • The entrepreneurial network – selecting yours

    One of the least understated resource which any budding entrepreneur needs is a personal entrepreneurial network. When I run business startup programmes, the truly lasting resource they gain is a network of like minded people. The skill learnt is to be able to find out a common fact within 60 seconds and engage that person on a entrepreneurial level and is one of the first skills we learn as entrepreneurs.

    There are numerous entrepreneurial networks offering different types of resources to start or improve entrepreneurial projects. However when selecting a network what is the criteria you should use to make you decision. Here are seven traits to look for.

    Social capital

    When we look at social capital with entrepreneurial networks, we see a number of factors which highlight the importance of the network and the development of trust. A number of researchers have underlined the importance of networks and social capital (Aldrich-Zimmer 1986, Burt 1992, Adler-Kwon 2002). There are numerous definitions of social capital, but the most appropriate one is ‘features of social organization such as networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit’ (Putnam 1995, p. 67). What social trust does the network promote?

    Collective Self-Efficacy

    Collective efficacy refers to a group’s shared belief in its conjoint capabilities to attain their goals and accomplish desired tasks (Bandura, 1986). The network should want to collaborate in collective action to address the problems within the group. This mean the continue mutual benefit should remain through the stages of enterprise development. So how will you get the most out of this network while you grow? What can you provide to the group and what will they provide you?

    Social Organization

    The network should be organized with rules, routines and opportunities to engage with every member. According to Shane and Venkataraman (2000) the domain of entrepreneurship is a connection between opportunities and enterprising individuals. This connection within the network needs to be organized for it to be effective for you as a member. Look for network which provide these connection opportunities within its social structure.

    Entrepreneurial set of norms

    The entrepreneurial network has a set of norms which will help define the enterprise development,  the business opportunities, the skills and the opportunities for future enhancement of the entrepreneur. What are the set of norms you will need?

    • Innovation – Combined with leadership, the entrepreneurial network is an indispensable kind of social network not only necessary to properly run the business or project, but also to differentiate  itself.
    • Beliefs  – Social beliefs are the expectations around which we organize daily social life. They allow us to put order into the world around us through kinship and social values. Does the network fit with your beliefs?
    • Behaviors – The behavior traits such as dominance, extrovert, patience and conformity will be held within the group. Does it contain the right mix for your success?
    • Routine –  In general, entrepreneurs manage the risks around them by developing procedures and routines that enable them to access a suitable solution when a problem arises (Edvinsson and Malone 1999; Roos et al. 2001). If you have a regular access to the group, they can form part of you risk reduction strategy.

    Size of Network

    The network should have the diversity of people but also be large enough for you to constantly finding new people and opportunities. However your person network should be solid enough for people to know you well enough to interact with and provide and receive opportunities. The critical elements of the network are nodes, (members) and links (relationships) (Gartner 1988, Burt et al. 1994, Lipnack-Stamps 1994). So

    • How well do you need to know someone to consider them part of your network?
    • How many people can you consider to part of your network?

    The network should be at ten times larger than this number. This allows for you be able to develop as a business owner and also find new people to discuss the entrepreneurial mindset.

    Diversity of Membership

    The importance of a diverse range of members in the network important in being able to quickly gain adequate human resources to fulfill the entrepreneurial achievements. These fit into the following groups.

    • Business Services: Lawyers, Accountants, Marketing, Sales
    • Co-Founders: Technologists, Scientists, Engineers, Business managers
    • Client & Suppliers
    • Partners – high skilled employees, mentors, investors

    Online Network

    The internet provides a faster and more reliable method of connecting and sharing with others. Therefore we see more entrepreneurial networks, both on dedicated sites and also on the main stream social networks such as twitter, Facebook and also Linkedin.  Twitter is many groups of people who are dedicated to enterprise providing the information which is needed to start and develop a business.  Linkedin has many groups which debate and connections can be developed to share business ideas and opportunities.

    Chamber of commerce – http://www.britishchambers.org.uk/

    Federation for small business http://www.fsb.org.uk/

    Institute of directors – http://www.iod.com/

    Enterprise Nation – http://www.enterprisenation.com/

    NACUE – http://www.nacue.com/

    Shell Livewire http://www.shell-livewire.org/

    Sandbox – http://www.sandbox-network.com/

     

  • Choosing an entrepreneurial university

    Even if you don’t what to start a business after university, you should think about leaving university with some amazing enterprise skills and experience which you can use in business, your own or someone else’s.

    The development of these skills is important in building knowledge and experience which business can use, want to use and can use. Enterprise skills are employable skills which businesses want.

    When selecting a university you need to think about what is and is not available in term of enterprise development, So what is best practice within the sector?

    The first items to investigate are student societies. So look for an enterprise society, which is a student lead organization which allows like minded students to develop ideas, network and build business relationships while in a university environment. The second society is called, SIFE, Students In Free Enterprise which allows student with social responsibility to developer both their entrepreneurial skills while helping others.

    Does the university offer an additional enterprise extra- curricular module for all students and does this create additional credits towards your degree. Employers like enterprising people and this is a great way of ensuring it enters your CV.

    Then take a good look at the careers, enterprise and innovation departments will run skills development workshops which are outside the students course. These skills should include networking, ideas creation, sales, marketing, business and financial planning.

    The entrepreneur in residence is the centre of the university enterprise culture, they have done it, started a business and don’t just speak about it. They have real experience which can be used as a sounding board which young students can use to explore, develop their ideas and find mentors which can help take the idea forward.

    There should be a place where students can just walk-in and talk about their ideas about business and have an informal chat. Is this accessible and do any of the staff know anything about business, enterprise and development of skills.

    Once the student has an idea, they are a number of options which should be made available to the student. The first point which most students needs is some funds, so the university making micro loans available can help move the idea forward. So ask what financial support is available?

    Once you have an idea, an incubator can provide a space where you can get a desk, network with others and get a lot of business start-up support in the early stages. Its important to have a support network, which you can use to develop the skills and network.

    The majority of universities will provide business start-up bootcamps which allow students over three days to develop their idea and plan the progress they need to build an idea into a start-up and then onto a growing business.

    Not everyone will want to start a business, but the skills are very important, especially when working in small business, which accounts for 97% of UK businesses.

    While at university having an internship with entrepreneur or a small business will help. Some universities offer this intern year spent developing the students’ own businesses.

    To conclude, a university which allows you to gain real experience in which you can learn by doing and network with like minded people should be your choice. This will set you up for life and is worth every pound you will have to spend.