Lancaster University Management School - 54 Degrees Issue 27

Networking is often described as one of the simplest routes to business success. Entrepreneurs are encouraged to attend events, join professional associations, meet mentors, and build contacts who can open doors. This advice is not wrong. But it assumes that the same doors are open to everyone, and that all entrepreneurs can step into the same rooms on equal terms. For many women entrepreneurs in Global South contexts such as Bangladesh, the reality is more complicated. Business networks are not always neutral spaces. Formal networking can require money, mobility, time, confidence, institutional access, and social approval. It can also demand comfort in spaces that are often urban, male-dominated and shaped by elite norms. For women running small and mediumsized enterprises (SMEs), especially those outside privileged circles, these conditions can make official networks difficult to access and even harder to benefit from. Our research looks at a different question: when formal systems do not fully work for women entrepreneurs, what kinds of networks help their businesses survive? The answer matters because business survival is often a more immediate challenge than rapid growth. In difficult environments, entrepreneurs may be dealing with limited finances, unreliable infrastructure, restrictive gender norms, family expectations, political instability or market uncertainty. Under these conditions, the most useful support does not always come from the most visible institutions. To ground this wider Global South discussion, our study draws on data collected from 156 female SME owner-managers in Bangladesh, and across 13 sectors, including garments, agribusiness, beauty salons, retail, education and consultancy, handicrafts, ICT, healthcare, catering, and creative services. The Bangladesh data illuminates networking dynamics that may resonate with similar Global South contexts marked by institutional constraint and gendered exclusion. DIVERSE APPROACHES We focus on three kinds of networks: personal, professional and virtual. Personal networks include family, friends, spouses, siblings, neighbours, and trusted community connections. These relationships can provide emotional reassurance, small amounts of finance, unpaid labour, practical advice and legitimacy within the local community. In many cases, they act as informal safety nets. They may help a woman entrepreneur continue trading during a crisis, manage household and business responsibilities, find trustworthy workers, or gain acceptance from customers and suppliers. Professional networks are the more conventional forms of business networking: chambers of commerce, trade associations, business clubs, incubators, formal mentoring schemes, and industry groups. These spaces are often promoted as essential for entrepreneurship. They offer valuable opportunities. However, our findings suggest that they did not have a significant effect on the survival of the women-owned SMEs in our study. This does not mean professional networks are useless. Rather, it shows that their practical value depends on 40 | Personal networks Family, friends, neighbours and trusted community ties Strong survival support Virtual networks Social media, online communities and digital customer channels Important survival support Study snapshot 156 women entrepreneurs • 2 cities • 13 sectors Key message Personal and virtual networks mattered most for survival; professional networks were less useful under adversity Professional networks Chambers, trade bodies, business clubs and formal mentors Limited effect in this context Adverse contexts • Limited finance • mobility constraints • weak formal support Shapes the strength of network effects Business survival Continuity • resilience • adaptation When the right network is not the official one

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