What is social capital?

Similar to notions of physical, human and financial capital, Social Capital is a powerful resource. It refers to the things available to you through personal and business networks: resources like information, business opportunities, collaboration, sales leads, goodwill, trust and emotional support.

Social Capital is productive: it has value, it enables you to get things done, achieve your goals, fullfill your mission in life, and to make a contribution to your community and to the world¹

If you think of Human Capital as WHAT you know (your knowledge, skills and experience), then Social capital is WHO you know. But more importantly it's also - who knows YOU, so your ability to engage in networks is crucial to your Social Capital. These networks include;

• Business networks
• Personal networks
• Friendship networks
• Peer networks
• Family networks
• Political networks

The structure of these networks influences almost everthing you do - where you find resources, how you solve problems and how you get information. The ability to understand, influeunce, shape and interact with these networks adds powerfully to your ability to achieve. Without this ability, resources can remain hidden, out of reach or remote.

1. Baker, W Achieving Success through Social Capital (New York: John Wiley & Sons, 2000)