A myth about entrepreneurs is that we are just a bunch of “lone rangers.” (The Lone Ranger was a fictional former Texas Ranger who went off on his own to fight bad guys). According to the lone ranger myth, the reason we start our own businesses is that we can’t get along with others. We can’t function in an organizational structure. So we ride off into the wilderness by ourselves to chase down our next deal.
Every myth is based on a bit of truth. Entrepreneurs do tend to have a higher need for independence. There are decades of studies of entrepreneurs that suggest we have a stronger urge to be independent than the average person. In simple terms, psychologists define the personality trait of independence as preferring to act on one’s own thoughts rather than follow others.
Just because we have the urge to follow our own ideas does not mean we have poor social skills. To the contrary, independent thinking is recognized as an important part of healthy social skills by most psychologists.
In fact, there is a growing body of research suggesting that what is called social capital, having a strong network of people with knowledge, experience, and wisdom to draw from, is an important determinant of entrepreneurial success. It can be even more important for many entrepreneurs as the financial capital they need to succeed in business.
Important Sources of Social Capital
What are the sources of social capital for entrepreneurs?
It starts with their family and friends. At first glance it might seem that the social isolation we are all practicing should facilitate a stronger flow of social capital to entrepreneurs. After all, we are quarantined 24/7 with our family. However, being forced into togetherness is challenging us to find new ways to interact as a family. Those who have retired often talk about the initial challenges of finding a new rhythm for family life once the retiree is so much more time at home. During our adjustment to everyone being at home, it can become difficult if not impossible for family members to provide the social capital the entrepreneur needs from them.
Another critical source of social capital for entrepreneurs are their mentors, coaches, and advisors. These are the people who help keep entrepreneurs moving ahead and staying “between the rails.” At this point in my career, one of my greatest joys is serving as a mentor for countless student and alumni entrepreneurs. I know how important my mentors and advisors were for me when I was a full-time entrepreneur, and hope that I can pay it forward to today’s young entrepreneurs.
Entrepreneurs also receive vital social capital from their peers, that is, from other entrepreneurs. This includes industry peers, which is why we are drawn to meet-up groups, trade shows, and industry associations. These peers help us with the content of our businesses. It also includes entrepreneurs outside of their industry. The social capital we get from these entrepreneurs is more about the journey of entrepreneurship and about the challenges of being an entrepreneur, rather than the more technical aspects of building the business.
Staying Connected with Social Capital
Just as raising financial capital for a business takes time and effort, so too does securing the social capital we need. Here are five steps to ensure that entrepreneurs get the social capital they need to keep their businesses moving ahead during these challenging times:
- Intentionality in working from home. There is an old adage in family business: keep family time for family, and work time for work. As we adjust to a work-from-home economy, we need to take this advice to heart. There are many great articles available on how to effectively work from home. I posted one at this site.
- Family support needs structure. It is imperative to create a structure that ensures you can tap into the family support you need for your business. I find that our daily neighborhood walks is when I get the advice and support from Mrs. C. that I so desperately need for my work as a professor and as an entrepreneur.
- Mentors reach out regularly. Those of us who have the privilege of being mentors to entrepreneurs need to be intentional about reaching out regularly to touch bases. Even a quick text or email can go a long way to ensure the entrepreneurs we work with have a life line to us when they need it. Many of the entrepreneurs I talk with express feeling alone in their struggle to keep their businesses alive. Remind them that they are not alone.
- Set up weekly/monthly Zoom coffee or beers. I have various people who I meet with regularly over a cup of coffee or a beer. Some are my mentors, some are peers, and others are those who I mentor. Don’t let these important meetings stop because of the coronavirus. Create a regular schedule of zoom coffees and/or zoom beers to keep these vital conversations alive.
- Peer-based Zoom meetings. We have an amazing group of alumni entrepreneurs who all meet once a month to talk about their entrepreneurial journeys. Until we can safely meeting as a group, we are moving ahead, same time as always, on Zoom. Is it as good as meeting face-to-face? No, but it is better than losing this source of social capital.
Even as we seek to stay safe through social isolation, it does not mean that entrepreneurs must become isolated from their critical sources of social capital.
I thought this was a very interesting perspective, especially because I did for a long time consider entrepreneurs to be “loners”. The more I learn I see that there is a strong community of entrepreneurs looking to help one another always, and I can see the importance in that. I do think that this new quarantine has thrown off normal family dynamics and I can see how that could make it difficult for family members to provide social capital. Rather than just focusing on family social capital possibilities during quarantine, I agree that intentionality is huge during this time in an effort to stay connected with your social capital.
So often the rhetoric surrounding independence discounts the potential for blunt opinions to give space to others to share more freely. Entrepreneurs may wish to carve their own path in the world, but in so doing they are continuously creating opportunities for honest relationship. What seems to be most important during this time of social distancing and “stay at home” living is remaining blunt and maintaining boundaries. When you go for walks with your wife, schedule a zoom call, or send a text, you are creating an opportunity for transition into a transparent and honest space dedicated to business. There is a set beginning and end, the boundaries are clear. Thus, the blunt conversation has a direction and the overlap into other areas of life becomes more limited. Not only does this maintain sanity (by creating “work time” and “home time” while staying in one location) but it also provides the social capital for success.
I agree that “being forced into togetherness” is forcing families to interact with one another in new and different ways. One of the many prevalent sources of social capital, right now, is professors and teachers aiding and advising their students in how to handle a situation like this. There are many great ways my family has stayed connected with social capital during this pandemic. Not only have we separated work time via family time by creating a schedule, but we have also set up weekly Zoom calls with my mom and my dad’s side of the family. I strongly believe that staying connected and not becoming a “lone ranger” will help a person’s mental and emotional wellness.
I have grown up with entrepreneurs and have personally seen the advantages of social capital. I do agree that being outgoing and open to new things will widen your connections. Bigger social circles are advantageous for entrepreneurs because they offer more potential contacts to use as employees, clients and partners, or even mentors. I also believe that extroverts also may be better at team communication and working together. It is becoming difficult to help build social capital right now in our circumstances but having accessible sources like facetime or emails have helped everyone. For example, I have been using zoom to communicate with teammates and teachers.
This is an insightful point of view. At times it does seem like entrepreneurs are “lone rangers.” I don’t think the issue is about them not getting along with others, I think it’s that they don’t want to be controlled by others. Being an entrepreneur doesn’t exclude you from social interaction. From conducting market research to bouncing off ideas with your social circle or a coach, entrepreneurs may even have to seek out more relationships when building a business from the ground up. Though these conversations can be helpful, I agree with your advise that family support requires structure. There should be limits to when business is talked about to respect the family dynamics.
My father has always called me the “Lone Ranger” of the family for many of the reasons you mentioned. It wasn’t till now that I connected that metaphor to my entrepreneurial mind and have discovered that he is in fact very correct, but not negatively. I seem to be in my own world of passions, thoughts, and ideas when I’m at home. You are absolutely correct- in times like today, it’s imperative to have some sort of schedule or day-to-day routine of doing things. My family is the only social capital I have right now. It’s been a transition being back in the house for longer than two weeks because usually I come and go. I’ve suddenly remembered, “Oh this is where we don’t put our shoes when we walk through the door!” Working on a structure has been a blessing more than a curse and has allowed me to understand how to navigate business (school in my case) with parents who haven’t been in a classroom setting since the 80s. With all that being said, I’m glad change has been forced upon us because it has really helped us come together like when we were kids.
I had never necessarily thought of entrepreneurs as “lone rangers”–that is an interesting comparison! With Covid turning our world upside down, these tips are helpful to any entrepreneur or truly, anyone in general struggling to adapt to our ever-changing world. These tips are necessary to preserve sanity during the pandemic as well as enrich our minds and relationships. Like you said, we dont have to become isolated during this time, we just have to adapt and get creative!
I liked the statement that those who start their own businesses do not have poor social skills. Talking to people you do not know about what your product or service is and why they should choose you is a major part of starting your own venture.
Great post Professor. Social Capital is often an overlooked part of business, yet one of the most important. Without Social Capital, financial capital is almost worthless. While it is true that it has been hard to stay connected throughout the pandemic, Social Capital is more important than ever.
This article was very interesting in the way of entrepreneurs sort of being by themselves, but in the technical world they have many connections within the building of networks with other entrepreneurs because in this type of atmosphere they all want to help each-other be successful rather than not helping. I think its beneficial to always get connected with other people over a phone call or zoom. I’ve been doong alot of that while I get ready to graduare.