Nesting for Nutrients: Understanding Social Capital Dynamics of Rural Entrepreneurs

Abstract

Social capital is perhaps the biggest growth area in entrepreneurship research. Primarily the scholastic studies of economic sociologists set-forth such a trend of highlighting social embeddedness perspective. Their striking observation is that entrepreneurs nest their enterprises in society and receive enriched nutrients thereof, and in return, invest time and energy in social network. Symbiotic relationship that they build will continue to take shape in the larger societal context where the enterprises are nestled. The purpose of this paper is to understand the social capital dynamics of a select group of rural entrepreneurs. The paper begins with a review of extensive literature on social capital that offers a platform to grasp the social capital in the entrepreneurship context. Thereafter, it rolls on to analyse social interactions data. Findings establish the fact that social capital dynamics creates an economic critical mass that helps rural entrepreneurs to flourish against odds. Mainly the 'liabilities of rurality' makes rural entrepreneurs to seek entrepreneurial resources, both 'hard and soft', from 'network endowed' and 'network weaved' in the entrepreneurial process.