Business Networking : How Entrepreneurs in San Diego Can Make Use of Networking to Accelerate Growth in Small Businesses

Abstract: Networking is commonly used in many business clusters such as in San Diego, California. The strongcollaborative and networking culture spurs entrepreneurial activities and is crucial forentrepreneurial success in the region. Networking is a fascinating phenomenon much discussed inliterature. Sociologists have tried to map the patterns of networks and describe its existence andfunction in society. Relationship marketing theorists have taken to the discussion from a businessperspective and explained the relationships between the individuals in the business network. Thepurpose of this research is to analyze social networking and network organizations in San Diego inorder to investigate what entrepreneurs can gain from networking which can accelerate growth insmall businesses. The empirical study consists of a qualitative case study in San Diego. Data has been collected throughsemi-structured interviews with entrepreneurs, business service providers, investor, networkorganizations representatives, consultants and well-experienced professionals with knowledge froma variety of organizations in different industries. The theoretical study on networks, business networking, relationship marketing andentrepreneurship has led to the construction of the Entrepreneurial Relational Capital Model. Themodel is constructed on theories embraced in the thesis and is meant to work as a tool to evaluateentrepreneurs’ relational capital; or the entrepreneurs’ network of relationships and theirconstruction. The model has been used to analyze empirical data and the results show theimportance of evaluating business relationships for the entrepreneur to become more time efficientin networking, and to find the individual with the desired expertise. The research has shown thatentrepreneurs need to establish strong relationships to key individuals in the industry of their focus.The entrepreneurs’ social networking with key individuals accelerate the start-up process becausethe high level of trust in the relationship results in valuable referrals.