Chapter 9: Building Networks and Building Teams

Question 1

What is social capital and what are the 3 components?

Answer 1

Social capital refers to the relationships and networks that entrepreneurs can leverage for resources, support, and opportunities.

3 Components:
- Structural
- Relational
- Cognitive

Question 2

Structural Component of Social Capital

Answer 2

Refers to the overall structure of your network (who you know and how they are connected).

Includes the size, diversity, and strength of your connections.

Question 3

Relational Component of Social Capital

Answer 3

Focuses on the quality of relationships (trust, mutual respect, and collaboration).

Strong relational capital ensures that your network is supportive and reliable.

Question 4

Cognitive Component of Social Capital

Answer 4

Shared values, goals, and understanding within the network.

Helps ensure alignment and smoother communication.

Question 5

What are some examples of social capital in entrepreneurship?

Answer 5

• Using personal connections to secure funding or partnerships.
• Leveraging a mentor’s expertise to refine business strategies.

Question 6

What skills do effective teams exhibit?

Answer 6

1. Diversity of Skills
   Ex: A team with expertise in marketing, operations, and finance covers essential aspects of a startup.
2. Shared Vision
   To avoid miscommunication and conflicts
3. Managing Conflict
   To avoid groupthink and ensure diverse perspectives when resolving conflict.

Question 7

What do networks consist of?

Answer 7

Bonds: Close relationships like family and friends to provide emotional support.

Bridges: Connections to different groups or communities to offer new perspectives and opportunities.

Linkages: Formal relationships with institutions, such as investors or gov agencies to provide access to funding, knowledge, and credibility.

Question 8

What are 3 networking strategies?

Answer 8

1. Expand your Network
   Attend industry events, join entrepreneurial communities, and participate in accelerators or incubators.
2. Nurture Relationships
   Stay in touch with key contacts through regular updates or check ins. Offer value by sharing insights, referrals, or opportunities.
3. Collaborative Opportunities
   Partner with complementary businesses to expand reach or share resources.

Question 9

What are the 4 benefits of strong networks?

Answer 9

1. Access to Resources
   Financial capital, talent, suppliers, market access
2. Improved Credibility
   Enhances trust and legitimacy (being associated w reputable individuals)
3. Faster Growth
   Opens doors to new customers, investors, market opportunities
4. Resilience
   Provides support during challenges (supply chain disruptions or market downturns)