Research On The Influence Of SME Social Capital To Entrepreneurial Performance

Abstract:The important role of SME in the national economy continued to grow steadily, the final products and services accounted for60%of GDP. Still, SMEs are facing many problems during the growth process.The theory of social capital was put forward at the90’s of the last century, but the empirical research on the impact of SMEs does not exist that much. Although the government of Shan Xi province has introduced a number of policies to support SME development, most SMEs still suffer a bad survival situation. Therefore, it is urgent to find the factors that affect the SMEs performance. This paper set SME of service industry as objects, in order to find the path that the social capital affects the entrepreneurial performance, and this may supply theoretical and practical guidance for the development of SMEs.This paper based on the theory of social capital theory, enterprise performance, enterprise dynamic capability and organizational behavior, utilizing the qualitative and quantitative methods, to analysis of the status of social capital of SMEs. By reviewing the relevant literature on social capital and entrepreneurial performance, we construct the tri-model between social capital and entrepreneurial performance from the view of dynamic capability. Data of the paper are based on the questionnaires and statistical yearbook to support the empirical research. We did a reliability and validity analysis, exploratory and confirmatory factor analysis before we make sure the model is fitted to the data. Then we start to explore the path among the three variables through AMOS to find out the Influence of social capital on entrepreneurial performance.As the result shows, social capital of SMEs has a strong positive effect to the entrepreneurial performance. Among them, the structure dimension and relational dimension make a difference to entrepreneurial performance.According to the results we make some recommendations and countermeasures, and we hope this would help improve entrepreneurial performance of SMEs and government policy.