Social networks: Mikronet - A working example

By Helen Martin

I came across this report while browsing the EU Commission’s site, and thought it was really interesting that a country like Denmark, with a comparatively small population, should rank so well amongst the 34 countries that were evaluated.

Europe closes transatlantic innovation gap

Europe is gaining ground on the US in the field of innovation thanks mainly to Nordic countries leading the way.

The EU-US innovation gap has been decreasing year-on-year since 2003, according to a 2006 report. The latest version of the EU’s “innovation scoreboard” reveals it was the Danes, Finns, Germans and Swedes who were ahead of the pack, establishing themselves as world leaders in the field. The report also highlighted outstanding performance in life-long learning, with participation levels highest among the Swedish population at 35%, compared to Europe’s overall 11%.

What I also found very interesting was this comment:

“A survey by the EU’s statistical office Eurostat reveals that over 40% of European companies are actively innovating, more frequently in collaboration with customers and suppliers than with universities and public research institutes.”

The Danish Mikronet (www.mikronet.dk) is an innovative concept - I wonder if it was noticed by the compilers of this survey….

Mikronet

This is a brief update to the report published on KB (What turns a country into an innovation machine? 29-Nov-05 under the ‘Human and Social, Human Side of KM’ category) as it may be of interest to KB readers.  ‘Mikronet’ was established with the aim of strengthening and increasing independent knowledge-based enterprises through the effective exchange of knowledge and experience by means of a business network. This aim has been exceeded both regionally and country-wide. It is evident that the network continues to grow and thrive and has been recognised through the whole of Denmark, an excellent example of a social network.

Although the network now has 250 members and so exceeds the norm for social networks of about 150 members, not all are active members. As in any group, there is a core who are very involved, and many more who are content to remain passive, merely accepting the information provided.

Database of Members

The Mikronet database of members has grown, and is not only beneficial to members themselves in that it enables them to become visible with a description of their business, it also enables them to locate those in their own field of interest who - although competitors because they offer the same or very similar services – could become colleagues and working partners, to join forces in order to tackle bigger projects. The Danish term ‘kon-kollegas‘ (meaning ‘competing colleagues’) has been translated as ‘coopetitioners’.   The concept of joining forces for a given project and then perhaps joining with a different group, or continuing to work as a micro, has subtly begun to change working practices.

Organised events

A few meetings have been held, a particularly well-attended one was by Swedish Ulla Lisa Thordén on sales techniques. This sold-out course focused on awareness, and provided practical help, on this subject which many micros find bewilderingly difficult. Not hard sell, but instead subtle ways of persuading clients that the price charged is the right one for the service provided. As well as really useful guidelines on how to structure business life as a micro business - gaining a balance between general office work, promotion of one’s firm, selling and actual paid work which many micros find hard to achieve.

Conference

On November 18our second conference, this time a one-day meeting was also well attended. Several well-attended mini workshops were run, including one on how to optimise ones homepages, how to write newsletters etc.

One of the speakers was Finn Helmer who gave a provoking and stimulating presentation; he played Devil’s advocate with the following questions:

1 - How do we measure the value we create?

2 - Is this value more important than growth?

3 - Is too much emphasis placed on growth?

It is surprising how quickly the network members have become known to each other and how much I (and I expect others) find new levels of energy and inspiration for new ideas, new slants on what has for most of us become more routine in the past. Despite a packed programme there was time to discuss common problems and aspirations, arrange to meet to talk about collaboration etc. It was also encouraging to meet so many new members of the network.

Meeting face-to-face showed yet again how important it is for micros to meet and gain the stimulation of talking shop, exchange news and experiences.

Networks

The establishing of Mikronet has led to increased awareness of other networks, many Mikronetters being members of more than one. This is beneficial in allowing information to move between the groups – in fact it is amazing how much help is freely given between networks.

This month saw the formation of a group in North Jutland, based on Mikronet. They have opted to move away from the term ‘micros’ as their members do not consider themselves to be micro-businesses – they are ‘real’ businesses. Our perception is that micros are very much ‘real businesses’, their definition of micros obviously differs to ours.

The sub-networks set up at the original conference are still functioning – some better than others. It is evident that where members live within easy travelling distance the networks are thriving, others meet more sporadically. Networks do need physical contact or real enthusiasm to thrive.

Blog

To follow, describe and share knowledge of and about micro businesses Mikronet launched a web-blog which is authored by a handful of Mikronetters. The blog assists in strengthening the sense of identity of the group and provides the opportunity for external readers to add their comments and experiences.

Some of the entries are written in English as Mikronet has noted an increased interest in exchanging experiences on a more international level. The bloggers represent differing types of freelancers/micros. Some have many years experience behind them, others are novices. The blog is occasionally opened to guest bloggers. It is good to see how many overseas readers regularly log on to the web-blog.

On-line post group

Mikronet also has a well developed online-post group where members exchange knowledge and experience.

It is free to participate; the only condition being that participants are from a micro business/freelancer/independent.

Several exchanges through the on-line post group on how to go about setting up legal agreements for the project are underway, discussion around the required ethics involved in such partnerships have proven very beneficial.

Newsletter

Mikronet issues a newsletter which is mailed not only to micro businesses and freelancers, but also to those who are interested in keeping in touch with events in the micro business field even though they do not run a business themselves.

The future

Mikronet has raised funding for two exciting projects: The EU Social Fund has funded the education of ten mentors that will be available to help, guide and generally counsel micros, both those who are in the initial start-up period and those who are in a consolidation and growth/expansion phase. These ten experienced mentors, who are themselves microfirm-owners, will be selected from the country-wide network. They will be trained to function as mentors for a group of businesses which lie outside immediate political priorities and because of this are at risk of receiving no support.

Although there is in Denmark, like in the rest of the EU, great emphasis on getting entrepreneurs started on their own business, there is considerable focus on those which expand and recruit employees. Those who survive and grow in experience, skills and consequently income, but who have no desire to expand their business by taking on extra staff are ignored. Despite the fact that micros (1-9 people) representing a significant 91 % of the business http://ec.europa.eu/enterprise/smes/facts_figures_en.htm in Europe.

The second project concerns an evaluation of what micros perceive as success. This is being carried out by a researcher who is interviewing a series of micros to document their case histories and note their views of what they consider to be a success story. The results may answer the questions posed at the conference.

Both projects could be of significant interest to all EU member states.

We have found that Mikronet is increasingly contacted by other micros for help and guidance, because they appreciate advice from people who are aware of their problems as they have been in the same situation themselves.

So all in all the innovative Mikronet network is growing and proving most successful.