Businesses Should Not Underestimate The Power Of Networking

By: Dr Shehnaz Tehseen

Networking is crucial for the growth and success of MSMEs, enhancing their economic impact, job creation, and innovation. Effective networking aids in lead generation, relationship building, and increased visibility, while fostering collaboration and attracting top talent. Therefore, it is essential to maintain authentic connections and consistent follow-ups.

My research on “Entrepreneurial competencies and SMEs’ growth: the mediating role of network competence” also highlighted the critical importance of network competence for firms aiming for sustainable growth and competitive advantage. Network competence involves cultivating close relationships with customers, suppliers, and stakeholders, which helps firms gain access to resources and market insights. These relationships not only facilitate resource acquisition but also mediate between strategic and ethical competencies, supporting growth initiatives. 

By leveraging network competence, businesses can coordinate activities effectively, stay informed about market trends, and enhance their overall performance and competitiveness. This strategic approach drives immediate performance improvements and ensures long-term sustainability by positioning firms effectively within their markets.

During my visit to the UK, I explored Fraser House Hub in Lancaster, opened in 2021 as a project by Lancashire County Council. This hub is a co-working space and tech hub that fosters collaboration and innovation among tech and digital businesses. The hub, funded by Lancashire County Developments Ltd (LCDL), hosts various networking events like fhunded and tech-focused meetups, addressing regional skills gaps. 

Home to over 120 businesses and 400 members, Fraser House accounted for 37.4% of Lancashire’s equity investments in Q1 2024. This hub’s partnerships with institutions like Lancaster University and The University of Central Lancashire (UCLan), provide business support and R&D resources, enhancing skills development and innovation. This collaborative environment mitigates isolation for small business owners and nurtures professional relationships.

Fraser House Hub exemplifies how such environments can benefit MSMEs globally. Adopting similar models can amplify growth and innovation potential through continuous learning and creativity. Establishing such hubs worldwide would facilitate networking, driving MSMEs’ growth and development across diverse markets.

The author is Associate Professor, Department of Management, Sunway Business School, Sunway University

Previous articleSelangor International Halal Convention Joins 2024 Business Summit Lineup
Next articleMAHB Reports 11.2 Million Passengers In May 2024


Please enter your comment!
Please enter your name here