The purpose of this study is to examine the effects of social capital on the social entrepreneurial process, dealing with the case of “Takurojo”, or alternative elderly care facilities in Japan. Although a large number of studies have been made on effect of social capital on commercial entrepreneurship, little is known about its effect on social entrepreneurship.
The eight cases interviewed in this research showed the nature and role of social capital that helps social entrepreneur’s success. Social capital plays an important role in social entrepreneurship, as well as or better than in commercial entrepreneurship owing to the lack of infrastructure providing access to resources during the venture’s start-up stage.
Our findings suggest that social entrepreneurs need to mobilize social capital effectively by using the weaker ties with sharing their mission and vision.