For the Entrepreneurship and Networks course we will also have to write about the concepts learned in class and in the literature, and analyze them with practical cases.
This week I chose to tell the story of an Economics student who is also an entrepreneur, and explain the importance of your network on the business. She is president of the economics junior enterprise at University of Brasília, coordinates and conducts economic consulting projects. During the interview, she mentioned several times that the company receive help from other companies specialized in different areas. With the relationship with other junior enterprises of the university, members of the economic company do not have to worry about marketing, advertising, statistics or accountancy. They can focus on their specific projects. It is more efficient when companies have complete focus on what they really produce/sell rather than worrying about other matters. For example, a IT company that sells apps should focus all their resources on this subject, other tasks such as accountancy, law, advertising should be outsourced or at least have a separate department.
In Birley, S. (1985), The role of networks in entrepreneurial process is mentioned a good example of how important it is to maintain contacts in different areas: (…) it may be ver cost ineffective for banks to do other than lend money; on the other hand, they should be aware of services that, say, the local accountants provide, so they can help the entrepreneur efficiently (…).
Another benefit of having a good network of contacts is that, often, the service or product you need can be purchased for a much lower price if provided by a company inside your network. The economics student said in the interview that the companied established in the university have the culture of maintaining strong relationships between them, and therefore they can provide help in different aspects. Once, the junior enterprise needed an advertising project, project considered very expensive if elaborated by senior companies, with their network connections she could make a partnership with the advertising junior company of the university and not pay any money for the project.