The Study On The Impact Of Entrepreneurial Social Capital On SMEs’Performance

SMEs are an important driving force for China’s economic development, playing anincreasingly important role, especially in the trends of market-oriented reform in China. Inthis case, it is practically significant to select the SMEs as a starting point to study businessperformance issuesBesides, as SMEs are usually smaller scale and even family-owned business, businessowners are often also manage their enterprises personally. As a result, corporate executiveshave a lot of discretion in the development of enterprises, having a significant impact on theoperational capability and performance. The size of external social networks of topmanagement team, the position in the network that top management team occupied andtheir ability to call potential resources in the network, determine the ability of businessdevelopment, operations and profitability directly. With the development of social capitaltheory and gradually being introduced into the economic study, the use of social capitaltheory to explain and solve the problem of the SMEs performance, naturally become thenew direction of enterprise performance research.On business performance issues, scholars have done a lot of related research, but fromthe perspective of social capital to study SME performance, the number of the research issmall. In this thesis, firstly, the development of entrepreneurial theories is summarized indetail, and the scope of the concept of the entrepreneur is defined. Secondly, thedevelopment of social capital and the theory of enterpreneurial social capital applied ineconomics are reviewed and the shortcomings of existing studies are analyzed. Again, thisthesis selects44SME board listed companies located in Beijing, Tianjin and HebeiProvince as samples, constructing multiple regression model with the new methods tomeasure the entrepreneurs social capital used and doing the empirical analysis on theimpact of entrepreneurial social capital on business performance. The study found thatentrepreneurs who work in government or have a certain political identity have a negativeimpact on the corporate performance; There are positive correlations between key positionsthat entrepreneurs held in society associations and the corporate performance. In additionand without the addition of the control variables, the results are the same in both cases,indicating the linear relationship between the two has a certain stability. Besides, there areno significant linear relationship between Entrepreneur education, the number of jobs, thenumber of jobs that have been done and corporate performance.