The thesis focuses on the networking processes of entrepreneurs under the age of 35 who are members of the Association of Finnish Enterprises. The background of this thesis was to develop networking processes useful for young entrepreneurs, so that entrepreneurs could see the added value of membership in the Federation of Finnish Enterprises.
The Federation of Finnish Enterprises
Membership development
Membership structure
Checking the basic data from the 2016 membership survey shows that more than 50 percent of respondents (N = 4414) are over 50 years of age. Conclusions from the results of the research conducted by HR4 Promenade show that for the members of the Federation of Finnish Enterprises, networking with other entrepreneurs should be emphasized along with the possibilities of obtaining benefits from a professional and business point of view.
The goal of this research
The network relationship can be a partnership with one company or a relationship with several companies or organizations. The advantages of business networks can be simplified as these key factors (Möller et al.
Networking of professionals
In personal relationships, the entrepreneur creates an environment for the operation of the company that is more favorable than the starting point, for example in terms of flexibility, trust and informal access to information. Although community relations at the local level may bind the entrepreneur to too small a circle, a network of personal relationships can cross local boundaries at low cost.
Social media for professional networking
The relationship between LinkedIn attributes, social capital attributes and knowledge construction (Adapted from Li, Cox & Wang 2017, 317). Social capital attributes together directly influence the knowledge construction performed by LinkedIn members.
The role of networking enablers
Observations from theoretical frame
The starting point of this research was to determine the current role of the Federation of Finnish Enterprises as a network supporter between entrepreneurs. The target group of this study are all members of the case organization who are younger than 35 years.
Target group and sampling
According to the statistics and contact details of the case organization, the chosen target group included 7757 entrepreneurs at the time the study was planned in April 2017. Due to the amount of data collected, the appropriate research method was chosen as an online survey.
Quantitative research
Quantitative research emphasizes universally applicable laws of cause and effect, and it is based on the notion that reality is built on objectively observable facts. The thinking is based on the view that all knowledge comes from direct sensory perception and logical reasoning based on these observations. Plans for experimental arrangements or data collection where it is important that the observational data are suitable for quantitative numerical measurement.
Selection of subjects and sampling plans, which determine the population to which the results should apply. Draw conclusions based on statistical analysis of observational data, description of results using percentage tables and statistical testing.
Qualitative research
The most common methods of qualitative research are interviews, observations, surveys and information based on various documented materials.
Online survey as a research method
Strengths of survey
On the basis of a questionnaire, the respondent can choose the most suitable moment to answer the questions and he/she can think freely about the answers.
Weaknesses of survey
Development of the survey
These questions are intended to align the respondent with the rest of the questionnaire. However, as discussed with the Commissioner, this question also shows how much the respondent understands about the structure of the Federation of Finnish Enterprises and whether the information has been correctly implemented among the members. The next part of the questionnaire contained questions directly related to the Federation of Finnish Enterprises, which were used to gain more in-depth knowledge about the organisation.
It also reveals whether the respondent is already an active member of the organization or a passive bystander. What are the most desirable ways to get up-to-date information about the activities of the organization. The next section was the most important part of the survey as it was only about networking and networking methods.
I would like to be a more active part of the Young Entrepreneurs campaigns and I want you to contact me directly by email.
Reliability of research results
Validity
Reliability
The study is therefore based on random sampling, which is characterized by the selection of study subjects at the discretion of the researcher (Metsämuuronen 2003, 31).
Research material
Background questions
The majority of respondents founded their own company, 65 percent of respondents chose this option. These answer options were chosen to get the most accurate information about the size of the company. We assume that almost 52 percent of the respondents have a sole proprietorship, so they can be considered self-employed.
According to the register of members, a percentage of all members of the organization are self-employed, and 20.8 percent employ 2-3 people (The Federation of Finnish Enterprises 2021, 3). It served the commissioner primarily as an additional source of information about the knowledge and experience of the organization's members. For question number 13, respondents could choose only the three most important reasons, leaving the rest blank.
It is worth noting that networking with other entrepreneurs rises to the podium with 51.7 percent (387) of respondents choosing this option.
Questions related to networking
Expectations based on the question layout
The purpose of the first follow-up question was to obtain information about the attractiveness of these organized events; if the respondent answered yes to question number 18 and question number 19. Networking events do not attract new entrepreneurs and thus, are not interesting to the respondent. Focusing on this group can provide additional information on two things: "what these respondents value more than real-life networking events" and furthermore can provide an answer on "how the organization is able to serve them to these non-participating members if not by physical event.
If the respondent answered "Yes" to both questions, it most likely means that the methods used in the respondents' area of operation have proven to be attractive to new entrepreneurs and are most likely organized as must. These responses should be reviewed with background question number six regarding the regional organization of the respondent along with background questions number one and three regarding the age of the respondent and the amount of time the respondent has been an entrepreneur. The second set of networking questions studied the attractiveness of networking events (if organized) and respondents' willingness to attend these events.
Would you like to attend these events?”, followed by question 22 “If yes, what kind of networking events would you like to attend (open question)” and finally 23 “What benefits do you expect to receive from these networking events .
Results
This assumption is only strengthened when compared to the "no" option, which was chosen by only a minority, 5.8 percent of respondents. It was somewhat surprising to see that the majority of respondents answered "No" to question number 19, namely 65.2 percent of the respondents chose this option, while 28.9 percent chose the option "Yes". Compared to question 13, “Main reasons for joining an organization,” which showed that networking with other entrepreneurs was chosen by 51.7 percent of respondents.
The results appear to be inconsistent, with the majority of entrepreneurs seeing the organization as beneficial for networking and at the same time not participating in any of the organized events. The regional areas are in some cases quite large, for example in Lapland, so these events should be organized in a place that is easily accessible to most of the entrepreneurs. This question was answered with the option "Yes" by 58 percent of respondents, with a minority of 5.6 percent of respondents who do not see organized networking as an interesting option.
This type of service could be included in the tool of the Confederation of Finnish Enterprises, but it would require an active individual to help form these alliances.
Questions related to the activities of young entrepreneurs
One respondent criticizes the role of the organization in networking events, as SMEs, mostly small ones, trade business cards with each other in the hope of selling products and services to each other. However, there are weaknesses and one of them is that the entrepreneurs were not asked about what kind of social media services they regularly use, outside of the networking or organizational theme. The first question of the section asked the respondents that "Does your area have an active young entrepreneur group that meets regularly?".
Does your area have an active Young entrepreneurs group that meets regularly N=743 These answers can be cross-checked with the regional organization that the respondents chose at the beginning of the questionnaire to identify the areas that the entrepreneurs operate. By more actively communicating to the target group about the existence of the regional young entrepreneur committee or group, their organization can serve the members more effectively. It is again worth noting the high number of uncertain entrepreneurs, but what is also interesting is that the number of uncertain answers is clearly lower than the previous question, with 50.3 percent of respondents choosing that option.
Unfortunately, this question provided no additional information and could have been left out of the survey.
Questions related to social media
In the introduction, the simplified hypothesis of this thesis was that the Federation of Finnish Companies should focus more on the needs of providing added value to young entrepreneurs as a member of the organization. The technical functionality of the questionnaire stored in the Webropol system and the layout of the questionnaire were verified before the response link was provided to the target group of the study. When assessing the reliability of research results, we can take into account the target group of the research.
The target group was approached with a personal email that included a cover letter on the starting points, confidentiality and purpose of the results. The purpose of the cover letter was to motivate the respondent to participate in the investigation. The e-mail addresses of respondents invited to the survey are based on the database of members of the Federation of Finnish Enterprises.
The response rate for this survey was 9.6 percent of the original sample of 7,757 entrepreneurs selected for the target group. The decline in interest in joining a society, regardless of the topic, may be due to the increased use of social media services. Based on the results of this research and the theoretical background, these processes are important for the future of the organization, to maintain sufficient.
