Although the definition of Social Capital is diverse and could mean so many things at various levels depending on how it is applied. For this article, the term Social Capital are those relationships we have, build, or participate in that help contribute to the success of businesses.
Entrepreneurs should consider social capital as valuable as financial or human capital. Social Capital can be built through networking and using the internet. Through these mediums, business owners can form local and global connections. Business ideas, business connections, business briefs, contracts, etc., have been gotten through informal. That is social capital in action.
The chances for any business to succeed depend on the social capital of the founder, leaders, or company owners. These social connections and shared values have enabled access to financial and human capital that has helped the business grow and succeed. These connections and shared values are the keys to entrepreneurial success by enhancing business ideas, executing business ideas, gaining investors, recruiting experts, or building your team.
For example, you are the Chief Sales Officer as an entrepreneur trying to promote your business and gain new opportunities. Research shows that sales performance is attributable primarily to an individual’s social capital.
How then can you grow your social capital? Social Capital in Entrepreneurism can be grown in the following ways. The first is by offering advice or resources to others without expecting an immediate benefit. The second way is by giving to and supporting others to build trust and establish your reputation as an upstanding person who is skilled in your field. You can also contribute actively to your field. The fourth way is to share the work of others within your network, refer to other people’s businesses and help them get leads where you can. Connect them to people who may need their services or products. Educating and encouraging your employees and team on the power and essence of social capital to grow, further adds value to your business and results in growth. This is especially for people in your sales team. It is also important to grow social capital within teams, and this fosters connectivity and team bonding, increases organisation performance, employee well-being, engagement, and retention
Investing in your social capital and building substantial social capital can give your business great Returns on Investment. Like every investment, you need to be intentional, consistent, and patient. The truth and the fact are it always pays.