Entrepreneurial Networks

Chambers of commerce are a widespread and universally accepted form of "formal" entrepreneurial networking. Chambers, of course, belong to the traditional forms of business associations, but they offer modern services much valued by the same entrepreneurs who join other networks. These services include, for instance, attractively priced health insurance that a chamber negotiates with a provider under which the chamber itself is the "umbrella" organization providing a large number of "employees" to cover. Most chambers also offer training opportunities through seminars and lecture series, and virtually all offer multiple venues for contact, referral services, and technical advice for the fledgling member.

The Alternative Board® is a business established in 1990 with the objective of facilitating monthly peer advisory boards comprised of entrepreneurs and high level managers who run non-competing businesses. The Alternative Board® (TAB) is funded by membership fees based on the annual sales of each participating business. The voluntary boards TAB organizes consist of presidents, CEOs, owners, and managing partners of privately owned businesses. The boards—with up to 10 but no more than 12 members—meet monthly under the guidance of a TAB certified facilitator or coach. This cooperative venture is an example of a very formal entrepreneurial network in which business owners join together to assist one another in the development of their businesses—with an understanding that each will benefit from the cooperative endeavor.

SpeedNetworking'„¢ is a service business developed to assist entrepreneurs in the job of making connections with the "larger whole." According to the company's Web site what they offer is the following: "SpeedNewtorking.com is Web site are SpeedNetworking'„¢ events that provide a very effective and fun way of generating new business, ideas, job leads and ultimately providing participants greater professional opportunities in person."

The desire to interact and form connections is often greater than are the opportunities or time available to do so. Consequently, there is a business opportunity inherent in meeting this desire and some entrepreneurial types have taken advantage of the need and formed businesses to try and fill that need. SpeedNetworking'„¢ is only one such business. Another is LinkedIn.com, and the spread of the Internet has been an opportunity for such networking facilitation businesses.

Jodi Cohen, writing in the Chicago Tribune, described a SpeedNetworking'„¢ event this way: "It works like this: Following a schedule, participants sit across from each other and have five minutes to swap information about their businesses. When five minutes are up, the organizer shouts 'rotate, rotate, rotate,' and one of the guests switches seats. An hour later, each person will have made 10 contacts—and maybe plans to meet later for coffee." SpeedNetworking'„¢ events include the services of a networking "expert" who provides advice to participants. Such advice includes: 1) Ask the right questions, "What do you need?" instead of "What do you do?" 2) Develop a short, concise, and interesting description of your business, service, or product. 3) Most importantly, follow up after the event-stay in touch.

Business associations based on racial, ethnic and other similar common characteristics of its members are also types of entrepreneurial networks. Associations of this type include the U.S. Hispanic Chamber of Commerce, the National Association of Women Business Owners, the National Association of Minority Contractors, the National Black Chamber of Commerce, and the National Indian Business Association to name but a few. Like industry or business sector associations, these organizations offer members a variety of benefits as well as the opportunity to network with other business owners in a cordial and non-competitive environment.

Trade, business, and commercial organizations represent nearly 17 percent of all not-for-profit organizations in the U.S., at least as measured by Thomson Gale's Encyclopedia of Associations (EA). In its most recent edition, EA listed 22,270 major associations of which 3,789 were in the industrial/commercial category. Large entrepreneurial networks are a subset of this total, but the phenomenon, particularly in its more informal manifestation, is very much larger. These networks benefit small business above all, linking them into the greater fabric of American commerce.

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