CHAPTER II

REVIEW OF RELATED LITERATURE

This chapter deals with the review of related literature and

studies. Relating the contents of this related literature and studies can

help the researcher establish perspective on the veracity of the

researchers findings and ensure the novelty of this study.

This chapter is detailed presentation of the study’s literature

review, definition of terms and conceptual framework.

Literature Review

The area for discussion is systematically arranged based on the

proposed variable in the statement of the problems. These include (1)

On Being an Entrepreneur, (2) On the Different Networking Strategies

and (3) On the Factors that can help Entrepreneur to Succeed

On Being an Entrepreneur

Being a businessmen play an important role, using the expertise

and effort required to identify demands and bring some good new

ideas to market.

Entrepreneurs who prove to be successful in taking on a startup's chall

enges will be rewarded with revenues, recognition and potential forcon
tinued growth.Those who lose suffer losses and in the markets become

less prevalent.

According to Baumol (2016), entrepreneurs are like humans they

come in various forms and with various inclinations. Those who are

successful can control prosperous business firms and personal

fortunes. It is widely had that these entrepreneurs who have become

top managers of their firms bear substantial social responsibilities-that

they-should “give back” to the communities that made them

successful, using both their firm’s resources and their

own .Entrepreneurs can be reluctant to seek assistance. It seems like

the opposite of what a self-starter should do. Investors, partners, and

employees often buy into the founder more than a company’s product

or service. So, entrepreneurs feel the need to project complete

confidence and competence.

In addition, entrepreneurs are frequently thought of as national

assets to be cultivated, motivated, and remunerated to the greatest

possible extent. Great entrepreneurs have the ability to change the

way we live and work. If successful, their innovations may improve

standards of living, and in addition to creating wealth with

entrepreneurial ventures, they also create jobs and contribute to a

growing economy. Entrepreneurship is thus important for a number of

reasons, from promoting social change to driving innovation .

According to Patten T. (2016), entrepreneurs are seen as

attractive economic force and, in general, good for society.

Entrepreneurship programs also stress the advantages that

entrepreneurs give economies in terms of job creation and through

dependence on foreign investors.Political manipulation of the debate

about entrepreneurship results in setting goals and agendas which

encourage achievable results. By concentrating on such macro-

environmental outcomes, entrepreneur support initiatives neglect to

consider specific issues facing those embarking on or pursuing

opportunities in the creative industries.Entrepreneurs in the creative

industry have a different view. People see their production (products,

services or experiences) as an indication of something that is woven

into the person's fabric and can resist both the "empty signifier" of

entrepreneurship as well as the policymakers ' attempt to claim credit

for their achievement.

Furthermore, successful entrepreneur need a resilience capacity

that enables them to overcome critical situations and even emerge

from failures and crises stronger than before. Entrepreneurs can build

and develop good relationships with members of organizations by

participating in voluntary actions and through engaging in market

transactions. Contacts created through voluntary associations, such as

industry organizations, civic clubs, networking events and chamber of

commerce, help owners to overcome limitations of their original more

identify-based networks.

According to de la Torre (2015), being an entrepreneur is an

initiator, a challenger and a driver. Someone that creates something

new, either an initiative, a business or a company. He or she is the

beginning (and sometimes the end) of a venture, project or activity.

The entrepreneur might not be the ideator, but he or she is definitely

the one that decides to make that idea a reality. The entrepreneur is

the person in charge, the leader and the person to look to for

leadership. He or she is the one that pushes forward and inspires a

team to follow. The entrepreneur is the one that sits in the driver’s

seat, and has the ability to change direction, accelerate, slow down or

even stop a venture.  The entrepreneur is the ultimate responsible for

the destiny of its venture, which can be a company, a project, or any

other endeavor. The entrepreneur is the one that has the highest

stakes at the venture, thus the one that needs to be empowered to

fully direct the endeavor. Being an entrepreneur is not directly related

to having an equity stake in a company, but instead showcases the

leadership-related points. 

Furthermore, successful entrepreneur need a resilience capacity

that enables them to overcome critical situations and even emerge

from failures and crises stronger than before.

According to Chopard (2017), being entrepreneur is a role that

requires a high level of leadership and dedication. You are the spark of

the project. Your role is to motivate and inspire your team, your clients

and the community. Measure the intensity of your actions by not

burning your team with an overflow of work and ideas. If we relate to

the elements, an excess of Air (ideas, and thoughts) can turn down

the fire, (motivation and action). Yet a lack of oxygen will cause it to

fade. There is a sense of complementarity between each of the

elements. Being passionate about your project and vision is the spark

for any idea to manifest.

According to Batterson and Freeman (2017), entrepreneurs are

the people who do the big new projects that are the core of the

venture capital universe. Entrepreneurs are motivated by ambition,

often a passion which is all-consuming. They're normally not in it for

the money (though it would be nice), but instead to get something out

of themselves that they need to get out of, to show themselves in their

own special way.Most entrepreneurs are not driven primarily by money

or power, though their efforts may result from both. Most of them are

driven primarily by the need to achieve and win, and the right to

create on the basis of their own unique vision.Although, passion and

drive are important to entrepreneurial success, timing must also be

correct.

On the Different Networking Strategies

According to Goldstein (2019), networking strategies simply

adopt a strategic approach for developing professional connections and

contacts. But it's more than just meeting someone and sharing

business cards— those connections need to be fostered and converted

into business relationships. Networking strategy need an innovation

and risk taking are strongly related to the intent to become an

entrepreneur.

In addition, business networking brings with it the added

advantage of recommendation and personal introduction, which are

always very helpful for developing business opportunities. Take

note that people who are networking want to have a mutually

beneficial business relationship; they don't want to feel like you're

using them or taking advantage of your interaction with them.

Business networking is an effective low-cost marketing method for

developing sales opportunities and contacts, based on referrals and

introductions - either face-to-face at meetings and gatherings, or by

other contact methods such as phone, email, and increasingly social

and business networking websites. Small business owners can find

networking with other small business owners particularly useful so

they can benefit from each other's mistakes and save time and hassle

while they're at it.

According to Broad (2012), business networking research has

historically focused on understanding essences of networking

partnerships, but rarely the outcomes of business networking

activities. Networking can help you generate new sales leads, deepen

connections with existing contacts and learn useful information about

your markets. Networking is hailed by academics and marketing

professionals as a means of improving business performance.

Networking is another form of connecting people, it is special.

Although we use networking to achieve something in business.

Networking is use for meeting somebody, learning something newand

find a job-at its core. Networking is about establishing a social

connection and then using that connection to your and the other

person’s goal.

According to Hennigan (2017), networking is important in the

workplace for every people around the business and organization.

Many people use networking primarily as a11145 tool to find new job

but the real impact on the career is actually in helping to do work

effectively and efficiently. Building a strong network within your

organization and externally helps to find information when need it. It

ensures that can help to increase the chance of being aware of

important new developments.

Boosting productivity networking benefits on the organization

directly. It also benefits the organization by reducing stress and

conflict. Some of the bosses considered the networking skill of one

person. Some of an effective networker tends to be an effective

employee and helps to promotes calm and stability.

Networking is important in all areas on life. It is also the ability

of doing at a choice. Networking is not just about jobs or finding

customers, it is about working in a community with other people.

Master this skill and that’s can help to find work easier and more

satisfying. It help to realize the right talent for the kind of job and

responsibility that have planned for the team or have planned to take

up at a later point of time. It also brings together the entire workplace

and ensures that everyone remains on the same page. It has a huge

impact on business performance as well.

According to Fallon (2017), successful small business owners

know they only got to where they are now because of the people who

helped them along the way. A strong professional network can help
you achieve things you would never have accomplished on your own,

from solutions to seemingly impossible problems, to word-of-mouth

recommendations that build your customer base up.

However, handing out business card at an event or reaching out

via social media, networking is only effective if entrepreneur is smart

about it. Entrepreneurs and business leaders shared their best advice

for growing entrepreneur startup through their connections.

Networking has been long identified as the most effective job

search technique. It helps you tap into the “hidden job market” and

gives you an edge in terms of your competition. Below you will find a

number of networking strategies. It is not an all-inclusive list, but it

will get you started on networking yourself to your next position.

Networking is about consciously and gradually building up a list of

contacts, while being part of a mutually supportive.

Networking within your own organization makes you a better-

known candidate when a promotion opportunities comes up, too.

Always bear in the mind the importance of networking in our

organization. It is also the significant part of building a successful,

sustainable career. It requires a set of learned skills that can help

entrepreneurs and to discover and explore in business. It is about

recognizing and taking advantage of valuable relationships to get

things done and to achieve goal. It is also related on the participation.

Networks are established between people and workers in the

organizations. It is also to build a sense of common destiny and

support.

Networking is also a socioeconomic business activity by which

business people and entrepreneurs meet to form a business

relationships and to recognize, create or act upon business

opportunity, share information and seek potential partners for

ventures.

According to Ibarra and Uzzi (2012), strategic networking is the

ability to marshal information, support, and resources from one sector

of a network to achieve results in another. Pushed to its logical limit,

the basis of this difference is that effective leaders are highly

dependent on others to get things done. The irony here is that the

individuals in your network, who are the lifeline for building up the big

picture, are also individuals who are likely to be outside of your

immediate control. While this may seem obvious, it is often difficult to

transition from a purely operational network to a strategic one, either

due to simple time constraints (strategic networking takes time, often

without immediate or obvious benefits) or because of negative

personal attitudes toward strategic networking (for instance, “that’s

too political and goes against my values”). Having an effective

leadership transition involves a change from the boundaries of a

clearly defined organizational network. Making the leap from a lifetime

of practical participation and hands-on control to the uncertain process

of building and operating across networks is a challenge. Leaders must

agree that networking is one of the most important requirements of

their new leadership positions and keep allocating sample time and

effort to see it pay off.

On the Factors that can help Entrepreneur to Succeed

According to Joseph (2019), starting business can be a

rewarding experience, as have the chance to be a boss and the ability

to earn an unlimited income. But the path to success is not an easy

one, and likely to face numerous obstacles and challenges along the

way. Preparing a thoughtful and comprehensive business plan can help

you foresee possible obstacles and develop ways to overcome them

when they occur. Contingency planning, such as having access to a

backup financing source, can protect against unexpected events such

as the sudden loss of an important customer.

According to Kirkley (2016), some of the factors such as

technological advancement, market opportunity, competition,

costumer demand and prevailing market conditions have a significant

influence on the decision-making process involved in creating a new

venture.

Perseverance is to gain traction, especially if the business

concept is new and unproven. An important entrepreneurial success

factor is perseverance in the face of adversity. A marketer of a new

product, for instance, may need to make repeated cold calls to

potential buyers to find a few who are willing to take a chance on an

idea. Starting a business introduces an element of risk management,

especially if one person are leaving a stable job with a regular salary.

However, successful entrepreneurs know how to minimize risk by

making careful choices and decisions. It can minimize the risk by

performing extensive research and weighing the pros and cons of

multiple options.

According to Vukovic and Prvulovic (2018), the main theme in

the entrepreneurship field has related to the factors of motivation that

make people do the entrepreneur’s job. It has been thought that the

motivation link between the intention and the work of the

entrepreneur (Carsrud & Brannback, 2011). Motives, in fact, reveal

’basic reasons for somebody being ready to change and orient his/her
attitudes, intentions and activities what is, in any case, valid with

entrepreneurs’ The entrepreneurship success factors have usually been

studied and discussed with the use of three variables, such as: (1) the

external milieu influence (for example, the level of the industry

development); (2) the manager’s abilities and training (for example,

the business plan creation); and (3) the psychological and personal

qualities of the entrepreneurs. Among the entrepreneurship success

factors, that have been most frequently investigated, the following

ones should be mentioned: the manager’s abilities, the manager’s

education, the manager’s or the entrepreneur’s previous experience

and training, the manager`s or the entrepreneurs’ psychology features

and qualities, the net of social contacts and the milieu conditions. On

the other hand, there has been no general agreement about what

people have in mind when they describe ’success’ of any

entrepreneurial project. Nevertheless, the duration of the

entrepreneur’s work has been considered the most important criterion

for the success estimation

According to Bylund (2019), productive is also one of the reason

that economic growth comes from successful entrepreneurship. And

not all entrepreneurs who earn profits contribute to economic growth if

they have unproductive -- or, worse, destructive -- effects on the

economy.

According to Ademiluyi (2007) entrepreneurship skills are simply

business skills which individuals acquire to enable them effectively

function in the business environment as an entrepreneur or self-

employed.

Likewise, being an entrepreneur is not a joke, because it needs a

lot of concentration and effort to run your business to be successful.

Also you must think wise because the grow of your business will

depend on how you managed your business.

According to Akinola (2011) pointed out that it takes special

skills to succeed as an entrepreneur. Erhurum (2017) also noted that

most entrepreneurial skills come by learning and practicing.

Nevertheless, the various skills embedded in business related program

need to be explored and learn by it for them to succeed as

entrepreneurs.

Moreover, being an entrepreneur does not depend on your

educational background, being an entrepreneur is a skill that need a

lots of practices and learnings. After that you should act it on reality

and think a unique tactics on how to reach customers.

 According to Collins at al (2010) conclude that individuals who

pursue entrepreneurial careers are significantly higher in achievement

motivation than individuals who pursue other types of career, and

Stewart and Roth (2011) similarly conclude that entrepreneurs are

more achievement-oriented than managers. It is frequently

hypothesize that those with high achievement motivation are drawn to

environments in which success is more closely attributed to their own

efforts.

Unfortunately, many entrepreneurs fail to consider what it is that

they're contributing to the economy, and for that reason don’t always

end up being productive. Sure, you don’t have to be productive to

make money. And to the degree that "success" is a matter of getting

big figures at the end of your P&L statement and being "in the black,"

you can succeed as an entrepreneur without contributing much to the

economy or society.

Many entrepreneurs, however, are not in it simply for the

money; on the contrary, they don't actually make more than they

would through regular employment. And they're not involved in

entrepreneurship simply because they don’t want to work for someone

else. Instead, they  want to change the world (though this doesn’t

necessarily require their staying away from making money).

 There is also a time and place for social entrepreneurship

-- doing good by spending money. And there is similarly a time and

place for social business, or doing good while making ends meet. But

the emphasis on such projects is often exaggerated. Rather,

productive entrepreneurship means making a positive difference in the

world without requiring that entrepreneurs sacrifice their and their

families' future.

Synthesis

This chapter shows the findings of the study and some

consecutive studies done by previous researchers regarding the

networking strategies employed by the successful entrepreneurs,

researchers want to gain knowledge and give us lesson on how these

strategies help us on our daily life, the researchers selected a

particular topic for research.

Furthermore, today’s generation aspirants should know the

networking strategy to employed on their self.

Networking strategies is important in every aspect on business.

It is the way to become a successful entrepreneur.

These studies tell us little about what it takes to be an

entrepreneur, or what makes people more or more likely to succeed

in the distinctive tasks that entrepreneur demand and to start

business that is willing to risk loss.

Conceptual Framework of the Study

The research made use of the “Input-Process-Output”

framework.

The researchers identified the specific and appropriate inputs

and the right processes of the study to be able to come up with the

supposed output.

The input includes the description of the networking strategies

that successful entrepreneur use that will help aspiring entrepreneur to

become successful.

After the researcher singled out these variables, an in-depth

interviewing were conducted. Significant quotations and line variable in

the transcript/materials were extracted then encoding and

categorization of extracted quotations and lines were done.

Soon after the systematic organization of the data, a material

that described the networking strategies employed by successful

entrepreneur was designed as output of the study.

 Input Process Output

1. The different

networking

strategies

employed by Interview and

successful
Insights
Focused Group Gained
entrepreneurs
Discussion
2. The strategies

helped the

entrepreneurs to

become successful

Figure 1: Conceptual Framework of the Study

Definition of Terms

The researchers defined the following terms conceptually to

facilitate a better understanding of the research.

Business. Business is a project or a company that is organized

by an individual or group.

Connection. Connection is a relationship in which a person,

thing, or idea is linked or associated with something else.

Decision-Making. Decision-Making is an action or process of

making decisions, especially important ones.

Entrepreneur. The entrepreneur is a person who organizes and

operates a business or businesses, taking on greater than normal

financial risks in order to do so.

Entrepreneurship. Entrepreneurship is a process of designing,

launching and running a new business, which is often initially a small

business.

Factor. Factor is a circumstance, fact or influence that

contributes to result or outcome.

Market. Market is a place where two parties can gather to

facilitate the exchange of goods and services. 

Networking. Networking is the exchange of information and

ideas among people with a common profession or special interest,

usually in an informal social setting. Networking often begins with a

single point of common ground.

Perception. Perception is the ability to see, hear or become

aware of something through the senses.

 Relation. Relation is the way in which two or more concepts,

objects, or people are connected; a thing's effect on or relevance to

another.

Strategy. Strategy is a plan of action or policy designed to

achieve a major or overall aim.

Successful. Successful is an accomplish an aim or purpose.

Venture. Venture is a risky or daring journey or undertaking