What does social capital refer to?

Social capital refers to the value derived from social networks, relationships, and interactions within a community or society. It encompasses the idea that the connections people have—through friendships, family ties, organizational memberships, or other social relationships—can create benefits that contribute to individual and community well-being.

When individuals or groups have strong social ties, they can access resources, information, and support from others in their network. This network can enhance trust, cooperation, and opportunities for collaboration, which are crucial for achieving collective goals and addressing challenges. Thus, social capital plays a significant role in both personal development and community resilience.

While wealth, educational attainment, and physical resources can contribute to a community’s development and quality of life, they do not encapsulate the essence of social capital as it is primarily focused on the benefits generated through social interactions and connections. Understanding social capital helps in analyzing how relationships and networks influence various aspects of society, including economic and social outcomes.