Community social capital and entrepreneurship : analyzing the links

This study examines the effects of community social capital on entrepreneurial intentions (EIs) in rural communities in a developing country. Entrepreneurship, in the form of business start-ups, is widely recognized as an integral component of local economic development programs designed to address poverty and limited livelihood opportunities, especially among poor and marginalized communities in rural areas in developing countries. Using a survey of 496 individuals residing in five rural communities in the Philippines, and drawing from the theory of planned behavior and social capital theory, we examine the direct and indirect effects of community social capital (CSC) on an individual’s EIs. The findings show that CSC largely influences EI by shaping an individual’s perceived self-efficacy (PSE) to engage in entrepreneurship, perceived desirability of entrepreneurship (PDE), and perceived social norms toward entrepreneurship (PSNE). High levels of PSE, PDE, and PSNE have a positive influence on an individual’s EI. These findings offer more nuanced explanations of how social capital within a community can facilitate entrepreneurship as a means of community economic development. Implications of the findings and areas for future research are discussed.

Community efficacy and social capital

It has been suggested that the quantity and quality of a community’s social capital has a large impact on that community’s capacity to manage change. Despite many attempts, social capital remains notoriously difficult to measure. There is general consensus that social capital is the ‘property’ of a community or collective, yet in measurement frameworks social capital is normally aggregated up across individuals and different levels. Communities are not homogeneous; we argue that the differential capacity of various groups within the community to participate should be considered. Any measure of community social capital must take account of the diversity of the community and potentially unequal access of groups and individuals to community social capital: the nature and quality of opportunities is not uniform. Further, the validity of social capital depends in fact on its contextualisation – social capital resources that are effective in one context are not necessarily effective in another.

In this paper we present a new way of thinking about the social capital of a community, linked to the community’s capacity to deliver favourable outcomes for its members. We use the term community efficacy for this capacity to manage change and influence the future of the collective and community members. We present a framework that describes the nature and quality of the factors that influence community efficacy and are at the heart of a community’s social capital resources. The framework recognises that social capital resources are used at the point of interaction between community members; hence opportunities for interaction are important. We suggest that the framework can be applied to measure community efficacy in various contexts, and discuss how it can be applied to a rural community’s ability to foster successful transitions to young adulthood for its young people.

A complex connection : community newspapers and tiers of social capital

At a time when newspaper circulations across the globe are plummeting, there is increasing interest in the concept of `local over global' and research linking small newspapers with the `strength of community'. There has been a myriad of definitions on social capital including Coleman, Bourdieu and Putnam which focus on the value of the strength of relationships formed by individuals and groups within communities. While newspaper circulation has been linked to community social capital, little attention has been paid to the way social capital works within the news organisation from those who produce news and information to those who read it. Given the complexity and multiplicity of the sociology of news production, this paper examines the role of organisational social capital in this process and argues Ronald Burt's theory of 'structural holes' (1997) may be an appropriate theoretical lens through which to consider this.

Clarifying the link between social capital and MSME innovation performance : the role of absorptive capacity

A conceptual framework is proposed in this article showing how the social capital of a community shapes the innovation performance of micro, small and medium enterprises (MSMEs) through the exercise of absorptive capacity as the mediating phenomenon between the two. Its significance stems from the unprecedented effort of explaining how community social capital matters in the innovation performance of MSMEs, a departure from previous studies which typically examined market-related or hierarchical social capital in the form of formal networks and directly linking them to firm innovation without due regard to knowledge management within the firm as an antecedent of organizational innovation. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in an MSME and/or entrepreneurial context.

Social capital for knowledge management : the case of small and medium-sized enterprises in the Asia-Pacific Region

This article proposes a conceptual framework that explains that the social capital of a community shapes the innovation performance of small and medium-sized enterprises (SMEs) through knowledge management within the firm. The study's significance stems from the unprecedented effort in explaining how community social capital matters in the innovation performance of SMEs, a departure from previous studies that have typically examined market-related or hierarchical social capital in the form of formal networks and directly linked them to a firm's innovation performance without due regard for knowledge management within the firm as an antecedent of organisational innovation performance. The aim is to stimulate further thinking and empirical research on the subject of social capital of a community in the SME and/or entrepreneurial context.

'Dig in' to social capital : community gardens as mechanisms for growing urban social connectedness

This article reports on research undertaken with members of a Melbourne urban community garden to explore the extent to which such a natural amenity provides opportunities for enhancing social capital. It is apparent even from this small qualitative study that membership of 'Dig In' community garden offers many benefits to its members. These benefits include increased social cohesion (the sharing of values enabling identification of common aims and the sharing of codes of behaviour governing relationships), social support (having people to turn to in times of crisis) and social connections (the development of social bonds and networks). However, the study indicates that, at least in the early stages of development, such benefits do not necessarily extend beyond the garden setting. This raises a question about the time required to develop high levels of social capital, and points to the need for further research into 'time' and 'space' aspects of community gardens.

Social capital : an analytical tool for exploring lifelong learning and community development

In her recent contribution to the British Educational Research Journal, Pauline McClenaghan identified the link between social capital and community development, particularly community development education, as a core area where scholarly and policy interests overlap. She concluded that the concept of social capital is unable to grapple with the complex social divisions that characterise contemporary Europe. The authors of this article question her account on three main grounds: the definition of social capital, which they hold is overly narrow, and does not deal with what Woolcock calls the ‘linking’ role of social networks; the presentation of the theoretical foundations of community development, which they believe is flawed in certain key respects; and a lack of clarity in the relationship between the research and the findings reported. The authors then present their own theoretically informed account of social capital as a means of understanding the role of community development, the challenges that it can face and the role of adult education for community development.

Civil society, social capital and the Twelve Step group

This article examines the nature of community and family by using the concept of civil society through a Twelve Step group called Al-Anon. Al-Anon is related to Alcoholics Anonymous and is a support group for families of alcoholics. The concept of civil society is addressed by looking at its development in political philosophy and sociology. The work of Putnam, in particular, is used to understand how civil society and the associations which make it up develop social capital [Making Democracy Work: Civic Traditions in Modern Italy, Princeton University Press (1993); Journal of Democracy, 6(1), 65-78 (1995); The Responsive Community, 5(2), 18-33 (1995)]. Social capital is understood to be norms and values such as trust and reciprocity that enable sociability or social connectedness. Community, then, embodies these norms of trust and reciprocity through their development in Al-Anon. Al-Anon is studied as an example of an association in civil society. The data come from an ethnographic study in Australia and five European countries as well as in-depth interviews with women members in Australia. The article reviews the similarities and differences between the various countries as well as the form that social capital takes for individual members.

Is alcohol and community sport a good mix? Alcohol management, consumption and social capital in community sports clubs

Objective: Community sports clubs provide an important contribution to the health and wellbeing of individuals and the community; however, they have also been associated with risky alcohol consumption. This study assessed whether a club's alcohol management strategies were related to risky alcohol consumption by members and levels of social capital, as measured in terms of participation in and perceived safety of the club. Method: A total of 723 sports club members from 33 community football clubs in New South Wales, Australia, completed a computer assisted telephone interview (CATI) and a management representative from each club also completed a CATI. The club representative reported on the club's implementation of 11 alcohol management practices, while club members reported their alcohol consumption and perceived levels of safety at the club and participation in the club. Results: A structural equation model identified having the bar open for more than four hours; having alcohol promotions; and serving intoxicated patrons were associated with increased risky alcohol consumption while at the club; which in turn was associated with lower levels of perceived club safety and member participation. Conclusion and implications: The positive contribution of community sports clubs to the community may be diminished by specific inadequate alcohol management practices. Changing alcohol management practices can reduce alcohol consumption, and possibly increase perceived aspects of social capital, such as safety and participation.

Education and training institutions : building social capital for regional development

Education and training institutions from schools through to universities have a vital role in supporting development in regional Australia. The interaction between these institutions and their rural communities influences the social capital of the community and the extent to which the community is a learning community, willing and able to manage change to the community’s advantage.

There are benefits to be had from a collaborative approach to planning and delivering training. This approach is consistent with theories of social capital that emphasise the crucial part played by networks, values and trust in generating superior outcomes for individuals, communities and regions. Research has found that education and training is most effective in building social capital and learning communities were there is attention to customising or targeting education and training provision to local needs. The key to matching provision with local needs, particularly in the more rural and remote areas, is collaboration and partnerships. Partners can be regional organisations, other educational institutions, businesses and government. The factors that enhance the effectiveness of the collaborations and partnerships are the elements of social capital: networks, shared values and trust, and enabling leadership.

Networks are most effective where there were opportunities and structures for interaction, which can be termed interactional infrastructure, that foster networks within the region, and networks that extended outside the region. Interactional infrastructure includes regional forums, committee structures, consultative processes and opportunities for informal discussion addressing the issues of education, training and employment in a community or region. Better outcomes are evident when there is an interactional infrastructure that is resourced with financial, physical and human resources of sufficient quantity and quality. Collaborations provide access to a greater range of external resources through extended external networks. Effective networks and shared visions, values and trust among the partners in a collaboration, are fostered by enabling leaders. Educational institutions are well placed to supply the ‘human infrastructure’ that makes collaborations and partnerships work, including enabling leadership.

Attention to factors associated with the quality of social capital, especially interactional infrastructure including leadership, shared vision and values and networks within and external to the community, can be expected to improve the effectiveness of education and training outcomes. More importantly, a collaborative approach to planning for education and training in rural regions will build the capacity of regions and their constituent communities to develop and change by building social capital resources. Leadership is an important driver of processes that build community and regional capacity and ultimately produce social and economic benefits through regional development. Educational providers in rural regions are well placed to act as enabling leaders.

Learning in agriculture : building social capital in island communities

Social capital helps communities respond positively to change. Research in agricultural businesses and into managing change through learning in communities has highlighted the importance of relationships between people and the formal and informal infrastructure of communities to the quality of outcomes experienced by communities, businesses and individuals. Communities can be geographic communities - the data drawn on in this paper are from an island community, for example or communities-of-common-purpose, such as agricultural organisations. This paper reviews research into managing change through learning and social capital, presents a model of the simultaneous building and use of social capital and explores the ways in which learning as part of an agricultural community can be used to bring benefits to geographic communities such as islands. The model presented in this paper stems from studies of the informal learning process that builds resilient communities. It conceptualises the way in which social capital is used and built in interactions between individuals. There are two stages to the model. The first stage depicts social capital at the micro level of one-on-one interactions where it is built and used. The second stage of the model is about the interrelationship of micro-level social capital processes with the community and societal-level social capital resources.