A Study On Social Capital Of Small And Medium-Sized Private Enterprises

"Social capital" is one of the most influential theoretical concepts which was evolutied from the new economic sociology since 1970s.LinNan thought that the expectation to be rewarded in the market to invest in social relations is the prerequisite of social capital.It brings institutional factors, value judgments and cultural impact into the framework of economic analysis,and thus takes factors that are not considered before but actually affect economic development into people's field of vision,which has been greatly expand the research scope of economics.Since the reform and opening up,small and medium-sized private enterprises in China become more and more concerned,they are not only regarded as important by economist,but also attracting more sociologist's attention because of its outstanding performance in promoting economic growth,since the influential factors of the development of one enterprise including social organizations,social traditions,social systems,and cultural factors in addition to economic factors.The study on social capital has integrated economics and sociological thread and provided us a brand new perspective to research and investigate small and medium-sized private enterprises,and it also strengthens our comprehension and knowledge about social action,social relations and social structure.In this study,we carried out systematic analysis to the social capital of small and medium-sized private enterprises on the basis of existing social capital research documentation by combining literature research with empirical research.Firstly,we defined the the core concept and proposed research hypothesis on the basis of the collection of the latest theories and research methods.We investigated 18 small and medium-sized private enterprises of social capital in L town through the method of structure interviewing,then we tested the research hypothesis with the interview results.We exploited the current situation of the application of social capital in small and medium-sized private enterprises and its corresponding reasons.We studied the characteristics, mechanism and the effectiveness of social capital in small and medium-sized private enterprises in combination with the exiting representative theories of social capital.At the end,we had raised many recommendations on the accumulation and renew of social capital in small and medium-sized private enterprises.Findings and conclusions of the study are described as below:Ⅰ:The social capital of small and medium-sized private enterprises that mainly accessed and used by the operators is composed by the internal and external social capital.Generally,the larger scale enterprises has,the more close it contacts with the government,but the degree of intimacy depends on the individual personality of the entrepreneurs.Small-sized private enterprises usually obtain less financial help from financial institutions in comparison with medium-sized private enterprises.The connections between enterprises and suppliers are almost made by enterprise owners together with their staff.Because the suppliers are from the different regions,there are different ways and depth of connections between enterprises and suppliers.The owners of enterprises make the contact with the suppliers and customers.These connections can help the enterprises to develop their business and get messages.Ⅱ:Entrepreneurs'social networks are the main part and kernel of social capital in enterprises. The wider range of the social networks of Entrepreneurs,the more social capital they will get.And all of these will help the enterprises get more economical benefits.In many groups,relatives and friends play an very important role in providing material and emotional supports.The group of customers and suppliers affect the providing of messages and the supporting of business deeply. The members in small and medium-sized private enterprises are harmonious,but the development and implementation of rules and regulations are not satisfactory.Ⅲ:It will lead the closure of entrepreneurs' social capital if the development of entrepreneurs rely heavily on the individual entrepreneurs and their social capital.At the same time, the social capital has not been fully utilized in the small and medium-sized private enterprises. Because of the inborn-relationship networks,such as the affinity relationship or the region relationship,there are more trust come from in relatives but not from institution.This type of trust have an relatively stronger positive effect on the entrepreneurs in the original stage.However,it will bring the negative impact on the human resources management of entrepreneurs in the stage of development.The situation of amplifing and executing necessary rules and regulations of entrepreneurs is not very well.This is also become the shackles in the development of small and medium-sized private enterprises.And it will bring risks to private enterprise in the process of becoming to the modern enterprise.Ⅳ:Social:capital of small and medium-sized private enterprises is built up on the basis of trust,relation network is the main manifestations of social capital,it is restrained by social norms borned from traditional culture and requirements that modern enterprises need,social capital accumulate and update in the dynamic system.Ⅴ:Generally,social capital of small and medium-sized private enterprises is positive correlation with its achievement.If enterprises make full use of internal and external social capital, the enterprises can enhance their financing capacity,operational efficiency,increase their market opportunities,reduce transaction costs and facilitate market information flows,which have a positive impact on enterprise performance.However,the over-reliance on the social capital of the "relationship"and the closed type can be the bottleneck when enterprise arrive the development scale.Over-contact with political power and social capital may cause rent-seeking and corruption, which would seriously worsen the social convention and operational circumstance of enterprise.At last,on the basis of findings and the conclusion of the study,we advise to set about by improving the credit system,strengthening association with the outside world and improving the utilization rate of the weak relationship.We can enhance business capabilities,and promote the development of enterprises by implementation of the build and update of social capital of small and medium-sized private enterprises.