It is commonly assumed that social enterprises enhance ‘social capital’ by strengthening networks, empowering communities, and becoming agents of change in the process of generating and co-producing sustainable services to the poor (Decanay: 2009)[i]. It has even been argued that harnessing and strengthening social capital should be the explicit objectives of social enterprises (kay 2006)[ii] .
Social capital is clearly an important resource for social enterprises in all phases of organisational and local development, as it reduces transaction costs, is appropriable (once built up for one action, it becomes available for others), does not diminish with use, and enables social cohesion. In many cases, however, social enterprises need to first develop awareness of the importance of building, nurturing, and maintaining relationships of trust and reciprocity with all their stakeholders. While social enterprises do network with other local social enterprises, they are also often in competition, rarely for market share, but most often for public sector support (European Communities, 2007)[iii].
Thus, the role of social capital in - "restoring social cohesion, reinforcing local networks and formal and informal groups which seek to facilitate integration of excluded persons into work and start-up businesses and co-operatives" - is increasingly recognized, especially in the development of intermediate organizations. In this case, the role of social enterprises in building cohesiveness and the social capital to develop focus on human security realms is the focus of the study that is clearly defined through literature study. It is where collective actions are of the way to overcome insecurity which communities may be able to overcome social dilemmas and problems (Ostrom 1990)[iv].
1. [i] Dacanay, ML 2009, ‘’Social Entrepreneurship: An Asian Perspective’’, in JA Robinson, J Mair & K Hockerts (eds) , International Perspective on Social Enterpreneurship, Plagrave Macmillan, Basingstoke, pp. 163-82
2. [ii]Kay, A 2006, ‘Social Capital, the social economy and community development’, Community development journal, vol. 41, no 2, pp 160-73, viewed April 2006, DOI 10.1093/cdj/bsi045 http://cdj.oxfordjournals.org/content/41/2/160.abstract
3. [iii] EU research on social sciences and humanities, ‘’The contribution of Social Capital in the Social Economy to local economic development in western europe’’. European commission. Directorate general for research. Brussels. http://cordis.europa.eu/documents/documentlibrary/82608021EN6.pdf retrieved in 4/30/2015 at 5.00 am
4. [iv] Ostrom, E. (1990) Governing the commons: The evolution of institutions for collective action, Cambridge: Cambridge University Press
Source: Master thesis: ''Social enterprise potential on human security through social capital'', by Luqman Abdurrahman- Indonesia defense university
Social capital is clearly an important resource for social enterprises in all phases of organisational and local development, as it reduces transaction costs, is appropriable (once built up for one action, it becomes available for others), does not diminish with use, and enables social cohesion. In many cases, however, social enterprises need to first develop awareness of the importance of building, nurturing, and maintaining relationships of trust and reciprocity with all their stakeholders. While social enterprises do network with other local social enterprises, they are also often in competition, rarely for market share, but most often for public sector support (European Communities, 2007)[iii].
Thus, the role of social capital in - "restoring social cohesion, reinforcing local networks and formal and informal groups which seek to facilitate integration of excluded persons into work and start-up businesses and co-operatives" - is increasingly recognized, especially in the development of intermediate organizations. In this case, the role of social enterprises in building cohesiveness and the social capital to develop focus on human security realms is the focus of the study that is clearly defined through literature study. It is where collective actions are of the way to overcome insecurity which communities may be able to overcome social dilemmas and problems (Ostrom 1990)[iv].
1. [i] Dacanay, ML 2009, ‘’Social Entrepreneurship: An Asian Perspective’’, in JA Robinson, J Mair & K Hockerts (eds) , International Perspective on Social Enterpreneurship, Plagrave Macmillan, Basingstoke, pp. 163-82
2. [ii]Kay, A 2006, ‘Social Capital, the social economy and community development’, Community development journal, vol. 41, no 2, pp 160-73, viewed April 2006, DOI 10.1093/cdj/bsi045 http://cdj.oxfordjournals.org/content/41/2/160.abstract
3. [iii] EU research on social sciences and humanities, ‘’The contribution of Social Capital in the Social Economy to local economic development in western europe’’. European commission. Directorate general for research. Brussels. http://cordis.europa.eu/documents/documentlibrary/82608021EN6.pdf retrieved in 4/30/2015 at 5.00 am
4. [iv] Ostrom, E. (1990) Governing the commons: The evolution of institutions for collective action, Cambridge: Cambridge University Press
Source: Master thesis: ''Social enterprise potential on human security through social capital'', by Luqman Abdurrahman- Indonesia defense university