Social capital refers to the value derived from positive connections between people, which can be tangible or intangible and include favors, useful information, innovative ideas, and future opportunities
. It is not held by an individual but appears in the potential between social network connections between individuals
. Social capital is essential for the effective functioning of social groups and societies, as it enables people to work together, share resources, and build trust
. Key aspects of social capital include:
- Networks of relationships : Social capital consists of the networks of relationships among people who live and work in a particular society, enabling that society to function effectively
- Shared values and resources : Social capital is a set of shared values or resources that allows individuals to work together, and it can be used to describe the contribution to an organization's success that can be attributed to both within and outside an organization
- Trust and cooperation : Social capital involves a shared sense of identity, understanding, norms, values, trust, cooperation, and reciprocity
- Economic and social benefits : Social capital has been used to explain the improved performance of diverse groups, the growth of entrepreneurial firms, superior managerial performance, enhanced supply chain relations, and more
Social capital is important because it helps individuals and societies thrive. It can lead to better health, longer life, and economic growth
. To create more social capital, some scholars suggest initiatives such as universal national service, enhanced subsidies for charitable giving, and additional resources and flexibility for local communities to innovate and rebuild
