Social capital as a distinctive feature of Social Economy firms

In recent years, the growing importance in developed countries of the Social Economy sector and the contribution of social capital to regional economic development are being studied in depth. Linking these two fields of research, the aim of the present work is to analyse the social capital endowments of Social Economy firms in comparison to those in traditional profit-maximizing firms. To do so, a literature review will be firstly carried out to clarify both the concept of social capital and, more specifically, its relation with entrepreneurship and social enterprises. In the empirical section, the social capital endowments both of social firms (cooperatives and owned-worker enterprises) and traditional firms are compared using data from two surveys conducted in Andalusia, a lagged Spanish region with long tradition in the Social Economy sector. Results show that social capital endowments measured through cooperation agreements and company links with local suppliers and costumers are higher in cooperatives and worker-owned companies. Therefore, Andalusian authorities must continue with its support policy to these enterprises as a mean to reinforce the regional economic development.