Monday, January 30, 2012

Too Much Networking? Some Researchers Think So

Do you have a lot of business ideas but never quite feel ready to execute?

My social networksYou might be stuck in the phase of  nascent entrepreneurship.

A nascent entrepreneur has a business idea but has not launched.

A recent study out of Germany suggests that too much networking could be taking attention away from work that needs to be done to launch the business.

The popular advice is to network, network, network. Connect, connect, connect.

Not so fast. Rethink that. Here's proof.

The last link, a study out of Germany suggests that new entrepreneurs need to build a network of resources to get the business going:
  • small business administrators
  • lawyers
  • venture capitalists
  • and other entrepreneurs
These contacts are vital, but once these contacts are in place, an entrepreneur does not necessarily need more options.

This study, published in the Journal of Small Business Management in January 2012, shows that maintaining contacts takes time, and this time takes away from other start-up activities. 

So, the take away? Contrary to popular belief, consider pulling back on the networking and focus on things to launch the business.

Full article: The Two Sides of the Story: Network Investments and New Venture Creation by Thorsten Semrau and Arndt Werner. January 2012, v. 50, n. 1.

[Creative Commons licensed image by Flickr user Gavin Llewellyn.]
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