It is important in all phases of life to discern who you know and who you can count on; especially if you are a businesswoman. Contact networks or social capital play a major role both in starting a new enterprise and in expanding your business; especially if you aim to achieve high impact and strong growth in a short time.   

Although to many women entrepreneurs it may not be very clear at first, turning an idea into an effective business requires developing contacts and organizing them to obtain financing, generate plans, to learn from other entrepreneurs’ valuable experience and to conceptualize the future company. One shouldn’t wait until something is needed; the key is to generate networks beforehand and to work strategically to maintain them.   

In an interview with ConnectAmericas Women, Silvia Torres Carbonell, Director of the Global Entrepreneurship Monitor (GEM), speaks about the importance of social capital. 

Why are contact networks important for women entrepreneurs?

There are four pillars to the creation of value in every organization: financial capital, physical capital, human capital and social capital. I would like to highlight the importance of the latter, which can be defined as a stable network of social relations that entails mutual recognition. It is based on a structure of relations between players; the more extensive and intensive our social capital, the higher our possibility of development. The key element that binds all of the participants in this social capital is trust, that is, the sensation of being comfortable with another and in feeling secure that although that other person has the possibility of harming me, he/she will not.

How do enterprises benefit from these contact networks or what are the advantages?

Social capital has a positive impact on the development of the enterprise; and entrepreneurs that actively engage in social networks diminish the risks in establishing a venture. Networks facilitate access to tangible resources such as physical and financial capital; and to intangible resources such as critical and relevant information, legitimacy, backup support, predictability, bridges to other contacts and strategic alliances, in addition to innovation.

What advice would you give to women entrepreneurs to strengthen their networks?

Women entrepreneurs should build a team of close collaborators that will help them in all phases of their project, and who will open the doors to other key individuals and contribute to placing them in the center of the map so that they will not go unnoticed. Effective networking is not a product of luck, it requires work and persistence. Its essence consists of giving and receiving; the only way to strengthen ties is to be proactive and willing to go wherever needed so as to generate mutual trust. The principle of reciprocity is basic. I always recommend being alert and to participate in entrepreneurial events, to not venture alone, that is, always look for institutions within the ecosystem that can offer support through mentors and training.

Five tips to make your network of contacts more powerful

• Design a plan and set objectives: You need a clear strategy and objectives to approach your contacts with respect to whatever it is that you want to achieve. It is not the same thing to seek capital or financing to acquire machinery, than a recommendation for a job or a scholarship.
• Learn how to introduce yourself: A good idea is to create both a verbal and a written script since words are very powerful and first impressions count. You should find a way to differentiate yourself and to be remembered through a simple slogan that is easy to remember. Studies indicate that you have between 20 to 30 seconds to make a good impression. Just as with personal encounters where you must take care of your appearance, in Internet this translates into writing correctly and precisely, without spelling mistakes and using few words.
• Exercise initiative and leadership: Attending events is not enough; you should try to maximize the contacts you make along the way. During activities you can do so by joining certain groups or specialized committees or accepting certain responsibilities that will allow you to approach people that interest you. Then, remember to be proactive to maintain these ties through different networks and platforms such as LinkedIn and forums and communities such as those in ConnectAmericas.
• Approach people you admire: Partner with people that you can learn from. By sending an e-mail to that contact that had so much influence on us at a particular time or that motivated us can be an excellent way of starting or reestablishing a bond. 
• Care for everyone equally and do not wait until you need something: From the intern that gave you your registration badge at a conference, to the guest speaker, from your friend’s father who is an influential businessman to the mother of another friend who is a housewife but may be seeking investment options. The future is uncertain but it is best to be prepared and to be surrounded by people that will be able to help us out with whatever we need.