Research On The Impact Of Entrepreneur’s Social Capital To Enterprise Performance

With the development of economic globalization, the economy of our country has achieved remarkable results. As the main force of Chinese economy, accounted for more than95%,the minor enterprises were hard to survive.there were many factors restrict the development of minor enterprises, such as small scale.lacking of talents and resources. In order to survive against the fierce market competition, small medium enterprises should not only pay attention to the quality of the products, but also use the capital of entrepreneur to get more resources from social networks. Nowadays we could not explain the whole economic phenomena by traditional physical capital and human capital, and we find the social capital theory were similar to our traditional culture, we could use it to explain our economic phenomena. Unfortunately, domestic academe seldom study the efficiency of entrepreneur’s social capital or social network, while foreign researchers have been interested in "the network approach to entrepreneurship" broadly. As a branch of social capital theory, entrepreneur’s social capital was different from the human capital, it based on the trust, norms and communication to improve the enterprise performance.Therefore, based on the theoretical and practical consideration, this paper concentrates the problem of Chinese entrepreneurs’social capital on the course of operation of new ventures, and investigates the process how entrepreneurs accumulated and mobilized their social capital which was an important resource endowment to secure the favorable ties to alter outside, and to realize the excellent performance of new ventures eventually. The paper was involved in two key questions:(1)What is the entrepreneur’s social capital, and what are the dimensions of it?(2)What is the effect from entrepreneur’s social capital to the different performance of the small medium enterprises.(3)what is the distinguish of each dimensions to the performance? If these questions were replied, researchers could explain how the Chinese entrepreneurs mobilized their social capital, and the entrepreneurs could understand how to accumulate social capital and what stakeholders they should connect during their entrepreneurial process.To answer the questions above, this paper was divided into six parts. Chapter1was introduction. It showed the special theoretical and practical significance of the study. Chapter2was literature review. On the basis of the summary of the exsisting researches, this chapter summed up the different studies of scholars about entrepreneur’s social capital. Chapter3was the hypothesis. In this chapter, social capital theory was the initial point. From weak ties theory to LinNan’s appoint,the social capital theory have been continuously developed in the west. In spite of this, there is no fixed view on the concept of social capital.All the studies showed that the social capital was a kind of social network with the resources,the entrepreneurs invested time and money in the network just for return in the future. This paper studied the relationship between entrepreneur social capital and enterprise performance. Based on the social capital, this paper proposed hypothesis as follows:entrepreneurs’social capital (government capital and business capital) can promote the enterprise performance. The business capital promoted the enterprise performance more than the government capital. Entrepreneurs’reputation enhanced the positive influence between the social capital and the enterprise performance.In addition, in order to reflect the relationship between the entrepreneurs’social capital and the enterprise performance concretely, the entrepreneurs’personal background characteristics were joined to this paper as the control variables. Chapter4was research design. This section included the data source, variable definitions and measurement and research models. Chapter5was the empirical analysis and results. This paper adopted the methods such as descriptive statistics, correlation analysis and regression analysis to test the hypothesis proposed in chapter3.Chapter6was conclusions and recommendations. By the empirical testing, the main conclusions of the paper are as follows:(1)The entrepreneurial government capital contributed to the promotion of the enterprise performance.(2)The contact with other companies can promote the enterprise performance.(3)Compared with the government capital, the business capital contributed more to the promotion of the enterprise performance.(4)The government capital also showed a negative impact on the enterprise performance. (5) The entrepreneurs with a good social status can promote the enterprise performance.(6) Compared with enterprise capital, entrepreneurs were more willing to use the government capital. Through theoretical analysis and empirical test, this paper put forward some suggestions for the small medium enterprise:(1) The government should enhance the support for small medium enterprises and improve the market mechanism constantly.(2) Entrepreneurs should cultivate and maintain relations with other enterprise network.(3) Entrepreneurs should pay attention to the investment in reputation.(4) Entrepreneurs should improve self management ability. There were some limitations in the research. In the future study, much more samples and the internal organization network, the personal network should be considered. It is a better way to use the time series to research the impact between the social capital and enterprise performance.