Research, The Plight Of Small Business Development Based On Social Capital Perspective

With the development of market economy, the proportion of small enterprise increases year by year, small enterprise plays an important role as a form of enterprise in the national economy, attracts people's more and more attention. In the early start-up of small enterprise, entrepreneurial resources, particularly social networks, social capital are particularly important for enterprise development. The initially successful development could enlarge the scale of enterprise's organization. Small enterprises, due to the characteristic, its available resources (including financial, human and social capital, etc.) are often unable to meet the expansion, their development will be in obstruction. At the same time, due to the uncertainty external and internal environment, small enterprises are more likely get into troubles.This paper takes an small educational and training,management consulting enterprise -X company as the case study, in which the early development continue to expand smooth while failed in the end, analysis perspective of its early start, developing successful and post-failure from the view of social capital and social network. The paper shows small enterprises survival and development of the contemporary social environment and its dilemma. First of all, the writer combines the related theory of social capital and social networks, described the target enterprise-X Corporation's development process in detail (including the start of, expansion, re-expansion), analysis the early start of the X Company's success and facing difficulties and ultimate failure in the progress development. Finally emerging from the study:In the early start-up of small enterprise, the key actors can take action adopt human capital and social networks, social capital, to achieve business and preliminary development successful. However, later in the venture's development, based on reciprocity and trust, structural social capital by the enterprises themselves often do not abide by the rules, norms, challenging the bottom line of the social system which led to the survival of small business structure of social capital fracture, which causes development of final failure. The theory of social capital has some explanatory power in the early success of small enterprises, so this is a strong the case validation about social capital theory. In addition, the author believes that:for certain small enterprises, such as the object of this paper X company with poor self-development projects coupled with a single development model, often self-centered and cooked up a kind of illusion seems to satisfy customers "needs", in the market can not meet the real needs of our customers, while the real market demand due to the restrictions of rigid system can not be achieved. This also indicates the limitations of the explanatory power of social capital theory on the development of some of a particular industry, which is the contribution of this paper.