Entrepreneurial Social Capital And Entrepreneurial Firm Performance

In the context of the global financial crisis, Entrepreneurships and entrepreneurial enterprises get more and more attentions. How to survive in the fierce competition for Start-up enterprises is currently a hot topic of entrepreneurship research.The study of social capital theory provides a new perspective of business performance, For the entrepreneurial enterprises, they can obtain the necessary resources, with the social capital of Entrepreneurs and tacit understanding, practices, trust, and punishment mechanism in order to maintain the common interest, solute the obstacles of the environment and promote sustainable development of enterprises. From the perspective of the social capitals of entrepreneurs, this paper conducts an empirical research of enterprise performance, hoping to draw some suggestive conclusions.Based on the review of relevant literatures, the paper defines entrepreneurial social capital from the three dimensions, vertical social capital, the lateral social capital, and other social capital. And builds entrepreneurial social capital model. Choosing companies listed on Growth Enterprise Market as a sample with a total of two years 2008-2009 annual report data, using cross-section analysis, a total of 147 sample companies are selected to test the relationships between social capital of entrepreneurs and enterprise performance of listed companies. Through the above analysis, I hope to get answers to the following questions:whether the social capital of entrepreneurs has impact on performance of listed companies? And how it affects the specific enterprise performance? Whether entrepreneur could build social capital as a means of optimizing the performance of SMEs in China? And how to build a better entrepreneurial social capital?According to the test results, it concludes as follows:vertical social capital is negatively correlated with firm performance; the number of firms and associations of industry where entrepreneurs service has positive correlation with firm performance: but the financial background has a negative correlation with firm performance; the business location and the education level of entrepreneurs have helped improve enterprise performance; there is no obvious correlation between enterprise performance and entrepreneurs'age and background of scientific research institutions.