Entrepreneur: Venture Capital and Social Skills
Introduction
Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn. There is a large literature devoted to the study of entrepreneurshipi n economics and related disciplines. The origin of the studies of entre-preneurship is the mature market economy. Jo-seph Schumpeter (1934) pioneered studies of entrepreneurs, writing that entrepreneursa re in-novators integrating resources in production for the marketplace. William J. Baumol (1968) and Harvey Leibenstein (1968) are among those who emphasize that entrepreneurshipis an en-gine of economic development
Entrepreneurs ' social skills—specific competencies that help them interact effectively with others—may also play a role in their success. A high level of social capital, built on a favorable reputation, relevant previous experience, and direct personal contacts, often assists entrepreneurs in gaining access to venture capitalists, potential customers, and others. Once such access is gained, the nature of the entrepreneurs ' face-to-face interactions can strongly influence their success. Specific social skills, such as the ability to read others accurately, make favorable first impressions, adapt to a wide range of social situations, and be persuasive, can influence the quality of these interactions. Moreover, by helping entrepreneurs expand their personal networks, social skills may also contribute to their social capital. Because social skills can readily be enhanced through appropriate training, entrepreneurs who fate advantage of such opportunities may reap important benefits.
Social skills come into play in many situations especially ones that are tense or stressful. Thus, their effects can be long-term and long-lasting, and may continue to shape relations between
Entrepreneurs play a key role in any economy. These are the people who have the skills and initiative necessary to take good new ideas to market and make the right decisions to make the idea profitable. The reward for the risks taken is the potential economic profits the entrepreneur could earn. There is a large literature devoted to the study of entrepreneurshipi n economics and related disciplines. The origin of the studies of entre-preneurship is the mature market economy. Jo-seph Schumpeter (1934) pioneered studies of entrepreneurs, writing that entrepreneursa re in-novators integrating resources in production for the marketplace. William J. Baumol (1968) and Harvey Leibenstein (1968) are among those who emphasize that entrepreneurshipis an en-gine of economic development
Entrepreneurs ' social skills—specific competencies that help them interact effectively with others—may also play a role in their success. A high level of social capital, built on a favorable reputation, relevant previous experience, and direct personal contacts, often assists entrepreneurs in gaining access to venture capitalists, potential customers, and others. Once such access is gained, the nature of the entrepreneurs ' face-to-face interactions can strongly influence their success. Specific social skills, such as the ability to read others accurately, make favorable first impressions, adapt to a wide range of social situations, and be persuasive, can influence the quality of these interactions. Moreover, by helping entrepreneurs expand their personal networks, social skills may also contribute to their social capital. Because social skills can readily be enhanced through appropriate training, entrepreneurs who fate advantage of such opportunities may reap important benefits.
Social skills come into play in many situations especially ones that are tense or stressful. Thus, their effects can be long-term and long-lasting, and may continue to shape relations between
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