As a medium for low cost promotion for your small business, networking is extremely effective. Whether it’s an online business network like LinkedIn, or offline networking events in your hometown, there’s no denying that networking offers small businesses a cost-effective and often successful way for your company to grow.

The problem with the majority of business networking sites is that it can be all too easy to disappear amongst the crowd, particularly with the likes of LinkedIn that has over 25 million business professionals using its service. This has resulted in many smaller businesses shying away from using business networks, despite them being the types of users that would benefit the most from a business network.

A new business networking website that recognizes this problem is Micromagnate.com, founded by Canadian businessman Jason Eke. The site is built around three key principles for its members:

• Share resources and refer work to each other
• Develop their business
• Develop their communities

Aimed at micro-businesses with less than 5 employees, the site is still in beta yet already is creating quite a buzz in the online business world. Rather than simply having members sign up and leave them to their own luck as far as connecting goes, Micromagnate.com differs in that it takes an active role in bringing its members together.

For example, businesses are featured on the home page, offering an instant audience for members. Businesses also enjoy a profile that’s ideal for social networking:

• Personal blog
• Upload promotional videos
• Events page
• Fully customizable profile page
• Interactive forum with dedicated Projects and Opportunities postings

Although it’s for micro-businesses, the approach taken by Eke could well be a blueprint for how all business networking could be shaped in the not-so-distant future. As the economy suffers with almost hourly news on the latest mega-corporation to fold or be bought out, it’s evident that business owners are facing some of the toughest market terms in recent years and need all the help they can get.

Small businesses in particular often don’t have the financial resources to weather the likes of the current financial storm. This makes the idea behind Micromagnate.com all the more relevant. If small businesses can network and support each other where feasible, it can only be good news all round for everyone.

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About the Author: Danny Brown is the social sensei at Bonsai Interactive, a small and mighty team of technology, media and marketing nerds rocking the social web. His blog is featured in the AdAge Power 150 list as well as Canada’s Top 50 Marketing Blogs, and won the Hive Award for Best Social Media Blog at the 2010 South by South West festival. You can find Danny on Twitter, Facebook and LinkedIn.