Entrepreneurs as a Source of Social Capital in China

摘要

Because of deficiencies in trust and social capital in many areas of China developing a base of entrepreneurial networks is significantly hampered. A base of entrepreneurial networks (social capital) is necessary for sustainable economic growth regardless of the stage of economic development, but is essential for developing economies. Low trust societies, generally, have stagnant, unstable, or weak economies as well as low levels of civil society. This paper discusses the roles of trust and social capital in China. Also included is interview data from several other countries classified as low trust - Latin America, the Mid East and several countries of the NIS of the former Soviet Union. Analysis' of interview data and a review of scholarly literature revealed that entrepreneurs, must, of necessity, create trust and social capital among customers, suppliers and employees to attain success and build sustaining economic networks. Creating trust and social capital in turn leads to increasing levels of civil society, a hallmark of prosperous and thriving societies. An overview model of entrepreneurism, including the role of trust, social capital and civil society is presented and discussed. Adding trust and social capital to traditional entrepreneurial models reveals that entrepreneurs have the potential to create social capital contributing to increasing levels of civil society, crucial for long term economic growth, even though the circle of trust is narrow.