Chapter 9 Developing networks and Building Teams

Question 1

Define social capital.

Answer 1

Social capital (intangible asset), which refers to our personal social networks populated with people who willingly cooperate, exchange information, and build trusting relationships with each other, is our source for ideas, support, reputation, new knowledge, and resources.

Question 2

How does networking build social capital?

Answer 2

Networks provide social capital, such as access to sources of financing, information, expertise, and support, and networks can be excellent sources for loyalty. They allow for learning and information exchange, and social capital enables access to a range of resources, including venture capitalists, angel investors, advisors, banks, and trade shows.

Question 3

What are the three dimensions of social capital?

Answer 3

1. Structural: your contacts, social ties (who are the people in your network? Informal or formal ties?)
2. Relational: what those contacts represent to you: trust, skills, knowledge, moral support…
3. Cognitive: What are the shared norms, visions, values, beliefs (that will help you work together on a common goal)

Question 4

What are the three types of social capital?

Answer 4

1. Bonds: Connections with people who are just like us, such as family, friends, and others who have a similar cultural background or ethnicity.
2. Bridges: Links that go further than simply sharing a sense of identity; for example, making connections with classmates or colleagues who may have different backgrounds, cultures, or other characteristics.
3. Linkages: Connections to people or groups regardless of their position in an organization, society, or other community.

Question 5

What are 3 advantages to networks?

Answer 5

1. Private information
2. Access to diverse skillsets
3. Power

Question 6

Define impression management.

Answer 6

Impression management is paying conscious attention to the way people perceive you and taking steps to be perceived in the way you want others to see you.

Question 7

What are self-selected stakeholders?

Answer 7

A stakeholder “self-selects” into an entrepreneur’s network to offer some type of short-term or long-term commitment to the venture and to connect the entrepreneur with resources—whether subject-matter expertise, funding, advice, introductions to others, new perspectives, feedback on concepts, or mentorship—in an effort to steer the venture in the right direction.

Question 8

Define startup incubator and startup accelerator.

Answer 8

A startup incubator is an organization that helps early stage entrepreneurs refine an idea and help transition from an idea to viable business model.

A startup accelerator is an organization that provides tailored support for existing startups that have already built an MVP by helping to scale and grow their business through focused programming designed to accelerate sales and establish a presence in the market.

Question 9

9.3 Describe different ways of building networks.

Answer 9

Building a network extends beyond socializing with friends and acquaintances, and it often involves active participation in organized networking events. In a new relationship, it is better to give value to get value; value is a two-way game. Incubators and accelerators are among the best places for entrepreneurs to network, connect to mentors and advisors, and find resources.

Chambers of commerce, civic organizations, seminars

Question 10

What 7 key attributes should a founding team member have?

Answer 10

1. Determination
2. Resilience
3. Tenacity
4. Commitment
5. Curiosity
6. Work ethic
7. Humility

Members who possess the experience, skills, and abilities to manage complex problems, cope with pressure, and overcome obstacles to achieve rapid growth.

Question 11

What is groupthink?

Answer 11

A phenomenon in which people share too similar a mindset, which inhibits their ability to spot gaps or errors.