What is Success

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Success, Credibility Networks
Ellie Hamilton
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What is Success?

• Subjective evaluation
• Dynamic - evaluation changes over time
• Basis for measurement?
• Multiple stakeholders
• Business and personal perspectives

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The Dynamic of Entrepreneurial Success
Objectives achieved or exceeded
Financial and strategic performance of business
Resources
Expectations of entrepreneur
Expectations achieved or exceeded
Economic Social Self-development
Success
Expectations of other stakeholders
Expectations achieved or exceeded
Economic Social Self-development
Source Wickham (1998) p.93
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Start-up The basic ingredients of success
Motivation and commitment
Abilities and skills
Basic success ingredients
Resources
Idea in relation to a market
plan and strategy
organisation and administration
Business Plan
Source Adapted from Gibb and Ritchie (1988),
Understanding the Process of Starting a Small
business
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Networks and Entrepreneurship

• Studies draw upon three theoretical roots
• Industrial networks
• Social support networks
• Personal Contact networks

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Personal Contact Networks
Advisors
Customers
Friends
Focal
Entrepreneur
Suppliers
Family
Sources of Funds
Source Adapted from Carson et al (1995)
Marketing and Entrepreneurship in SMEs, Prentice
Hall
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Research on SME Networks
Network membership Nature of linkages Type of
exchanges or transactions Network function or
role of network Network morphology Geographical
distribution of network
Source Carter Jones-Evans (2000) p376
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The Use of Networks
knowledge
emotional support
tangible assets
Focal
Entrepreneur
services
information
advice
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Entrepreneurial Learning and Networks
The learning, we identify, is understood within
this complex network of domestic, voluntary,
commercial and professional relationships and
part of an ongoing negotiated process Taylor,
D. W., and Thorpe, R. (2000), The owner-manager
no isolated monad Learning as a process of
co-participation, Proceedings of the 23rd ISBA
National small Firms Policy and Research
Conference, 1185-1199.
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The Role of Trust
Key constructs

• Enthusiasm
• Association
• Shared Vision
• Forgiveness

Source Haider, A. and Birley, S. (1998) The
Role of Trust in the Marketing Activities of
Entrepreneurs Establishing New Ventures,
Academy of Marketing Annual Conference
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Credibility the essential but invisible
ingredient
Vital but less tangible network activities are
the establishment of credibility with
stakeholders the maintenance of credibility
building credibility within the extending network
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The Credibility Merry-go-round
Money
Premises
People
CREDIBILITY
Customers
Suppliers
Source Birley, S, in Burns, P. Dewhurst, J.
(eds) (1996) Small Business and
Entrepreneurship, Macmillan
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The Credibility Spiral
Next customers
Supplier credit
Media story
First customer
Repeat business
STARTUP CREDIBILITY
Next customers
More customers
First employees
Key supplier
Bank funding
New Suppliers
Key employees
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Credibility Collapse
Next customers
Supplier credit
Media story
First customer
Repeat business
START-UP CREDIBILITY
Next customers
More customers
First employees
Key supplier
Bank funding
New Suppliers
Key employees
CREDIBILITY COLLAPSE
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Sources of Credibility
THE ENTREPRENEUR
MARKETING COMMUNICATIONS
THE BUSINESS EXTERNAL PERCEPTIONS
THE BUSINESS TRACK RECORD
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