Formal business networking and SME growth

Abstract

This paper provides new empirical evidence on the impact of formal business networking on small and medium-sized enterprise (SME) growth. Using a large, unbalanced panel data set of Flemish SMEs over the period 1992-2008, we examine whether participation in a government-supported program aimed at providing small business managers with structured formal networking contacts is associated with SME growth. Our results suggest that formal business networking is significantly positively correlated with net asset and added value growth

Sponsor networks and business relations orchestrated by team sports clubs

“…There is a common understanding that networks per definition are plural or hybrid forms of strategic alliances and cooperation (Rus and Iglic, 2005). The interest in, as well as research and literature on, networks is vast and includes -but is not limited to -positive and negative outcomes of trust (Brunetto and Farr-Wharton, 2007;Farrelly and Quester, 2003), their ability to generate new business and growth (Schoonjans et al, 2013), cooperation and innovation (Tomlins and Fai, 2013), brand image (Mäläskä et al, 2011), and relational marketing (O'Malley, 2014). There is a common understanding among small business alliances and network researchers that networking frequently has far-reaching implications for SMEs' success and profitability (Street and Cameron, 2007).…”

Entrepreneurs’ Networks at Rural Market: Developing a Creative Village in the Yamagata Prefecture, Japan

“…In urban areas, a mixture of dense and loose networks can be expected, which is likely to bring benefits of both bonding and bridging social capital (Putnam, 2001). Classical studies suggest well-developed networks contribute to entrepreneurial business, including improving net growth of business, trustworthiness of business, information flow, new opportunities, high competence, resilience, and regional growth (Granovetter, 1973;Coleman, 1988;Burt, 1992;Ismail et al, 2012;Schoonjans et al, 2013;Chiesi, 2014;Huggins and Thompson, 2015). Entrepreneurs cannot effectively use these networks if the number of residents is too small, as is likely in rural areas.…”

A model for effective planning of SME support services

“…Tang (2011) investigates influential networking behaviours in supporting the internationalization of Chinese SMEs. Study results of Schoonjans, Cauwenberge, and Bauwhede (2013) suggest that formal business networking is significantly positively correlated with net asset and added value growth. SMEs particularly benefit from networking as they often lack sufficient resources and knowledge to deal with the environment in which they operate.…”