The Research On The Relationshi Between Entrepreneurial Social Capital And Enterprise Growth

Enterprise growth is an eternal theme. The effects which entrepreneurs have on theenterprise growth is continued to study by economists for a long time. As the soul ofbusiness, entrepreneurs play an important role in operation and development ofenterprises. Marshall, the classical economists and entrepreneurs, pointed out thatentrepreneurs are the organizers of production factors, as they use their ability to createmore trading opportunities and effectiveness. Schumpeter believed that entrepreneursare management operators who engaged in "creative destruction". After Schultzproposed the concept of human capital, enterprise growth is researched from thisperspective for a long time. Pierre Bourdieur, sociologist, first proposed the concept ofsocial capital in "Social Sciences" in1980. Then social capital theory begins to enterpeople’s vision, and catches worldwide attention. Social capital theory brings a newperspective from which scholars study the relationship between entrepreneurship andenterprise growth. It was found that social capital of entrepreneurial helps thecompany’s growth. Since using the existing social relation networks, entrepreneurs keepgood relations with government departments, the higher authorities, suppliers,customers and other social subjects. And their long-term cooperation and mutual trustare beneficial for business to gain critical resources and information, save time of signedcontract and bargaining, lower transaction costs, enhance organizational cohesion,promote business innovation, keep its predominance in competition and promote itsgrowth.This study is based on the integrities and standards, the resources, and therelationship network views. On the basis of literature review, the social capital ofentrepreneurs is respected as a network of social relations which based on trust and rule.Enterprise growth is not only the growth of "quantity", but also the growth of "quality"as well as the help of knowledge and rules. In this study, the relationship between socialcapital of entrepreneurial and enterprise growth is analyzed from the micro, meso andmacro dimensions. Theoretical models are also built. Simultaneously, the theoreticalassumptions are proposed, then the econometric models is established. Finally, throughthe collection of financial statistics and related data of entrepreneurs’ social capital in12provinces and cities listed companies, EVIEWS6.0is used to test the proposedtheoretical hypothesis in this paper.Through empirical analysis, the following conclusions are arrived. Firstly, the micro-network of entrepreneurs has a positive correlation to the various indicators ofenterprise growth. Secondly, in the relationship network of entrepreneurs, the verticalrelationship network has a negative correlation to enterprise growth while the horizontalone has little correlation. Thirdly, the macro relationship network of entrepreneurs,namely the level of trust of entrepreneurs has a significant positive correlation toenterprise growth. Based on the conclusions above, the market mechanism should beperfected, and the market-oriented should also be promoted in western region. Therelationship between entrepreneurs and government should be properly dealed byentrepreneurs, and the proportion of inputs and outputs should also be cared. Throughthe confidence-building mechanism, entrepreneurs could improve efficiency in theorganization, establish a good working relationship with other social subjects exceptenterprises, constantly develop new relationships network, maintain the existing socialcapital, create development platform for western region and promote enterprise growth.