Explain the term networking capital as used in entrepreneurship.
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Networking capital is a term that is often used in entrepreneurship to refer to the value of an entrepreneur’s network of contacts, relationships, and connections. Networking capital can include a wide range of relationships and connections, including personal contacts, professional contacts, and connections with potential customers, suppliers, partners, and investors.
The value of networking capital is often measured by the quality, diversity, and strength of the connections and relationships that an entrepreneur has. These connections and relationships can provide valuable resources and support to an entrepreneur, such as access to information, advice, support, and opportunities. As a result, networking capital can be an important source of competitive advantage for an entrepreneur, helping to support the development and growth of their business.