Need help understanding Social Capital and how to implement this model into your business growth strategy?
Over the last 15 years, the notion of social capital as related to firm performance has exploded in the scientific research. Numerous studies in the US and abroad have found evidence that social capital is a critical resource in the pursuit of firm growth. Not only has the research characterized social capital as a mode of achieving economic integration, the data also supports social capital as a critical means of attaining that competitive advantage and value creation. Small business owners that do not unify their many forms of capital and uniformly drive those resources, ultimately can fail to integrate at the most basic level the unique characteristics their firm holds in both human capital and other forms of capital.
You might be asking – How do I integrate a social enterprise when I can’t see or measure it? Using social capital theory and strategic network theory is one way. However, I recognize you do not have the time nor inkling to go on a tangent reading theory.
The objective of this article is to help with this problem by examining the impact of social capital on the small- and medium-size enterprise using my professional experience with small business owners and the scientific literature. I hope to share at the most basic level what social capital is, how to leverage this dynamic, and then provide the small business owner a means of measuring success (or failure) of their social enterprise.