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Entrepreneurship Part 2 - Social Skills

What there is in our business is plenty of plans, plenty of entrepreneurs and plenty of money. But there is a shortage of great teams.

John Doerr | Silicon Valley Venture Capitalist

According to Baron and Markmann (2000) there are several social skills that are described in the following that have potential relevance to entrepreneurial success:

Social skills relevant to entrepreneurs’ success | Baron & Markmann (2000)

The flow of entrepreneurial success starts with high level of social skills.

The short way is that social skills will broaden social networks with enhanced reputation. This leads to an increased social capital which enhances the success of an entrepreneur.

The second way of the cause effect chain is that a high level of social skills will lead lead to positive affective reactions on the part of others. Through the enhanced judgements and decisions about the entrepreneur. This will automatically improve relations between the founders. Improve the performance of key tasks (e.g. raising capital, recruiting employees and gaining customers. And nevertheless shows the ability to form successful business alliances. The result again: Enhanced success of an entrepreneur.

The assertion of Baron and Markmann that social skills can play an important role in the entrepreneurial journey of success has some implications for entrepreneurs and others wishing to assist them in their efforts to start new ventures:

1. Training in social skills can help many entrepreneurs succeed

2. Training in social skills is readily available - and it works

3. Training in social skills is already included in the curricula of many business schools and is used by many organizations

4. Enhanced social skills can contribute to entrepreneurs’ social capital

5. Training in social skills - or at least a discussion of this topic - should be part of all programs in entrepreneurship

6. Entrepreneurs can be persuaded to seek much training

In order to describe an entrepreneur we will follow the 10 Ds defined by Bygrave (2010) that symbolize the spring of entrepreneurial behavior:

1. Dream: Entrepreneurs have a vision of what the future could be like for them and their businesses. And they have the ability to implement it.

2. Decisiveness: They don’t procrastinate, they make decisions swiftly

3. Doers: Once they decide a course of action, they implement it quickly

4. Determination: They provide total commitment and they seldom give up

5. Dedication: They are totally dedicated to their business, sometimes at considerable cost to their personal relationships

6. Devotion: They love what they do

7. Details: The devil is a squirrel. Entrepreneurs are on top of critical details

8. Destiny: They want to be in charge of their own destiny

9. Dollars: They assume that if they are successful, they will be rewarded

10. Distribute: Entrepreneurs distribute the ownership of their businesses with key employees who are critical to the success of the business