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Entrepreneurial Entrepreneurial Communities: Bridging and Communities: Bridging and

Bonding Social CapitalBonding Social Capital

Jan L. FloraJan L. Flora

Extension Community Sociologist Extension Community Sociologist and Professor of Sociologyand Professor of Sociology

Iowa State UniversityIowa State University

Floraj@iastate.eduFloraj@iastate.edu

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ResourcesResources

Can be --Can be --–consumedconsumed

–storedstored–investedinvested

Can be --Can be --–consumedconsumed

–storedstored–investedinvested

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CapitalCapital

Resources invested to Resources invested to create new resourcescreate new resources

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Community CapitalsCommunity Capitals

Social CapitalSocial Capital

Financial/Built Financial/Built CapitalCapital

Human Human CapitalCapitalHuman Human CapitalCapital

Natural CapitalNatural CapitalNatural CapitalNatural Capital

Healthy ecosystemHealthy ecosystemVital economyVital economySocial equitySocial equity

Building mutual trustBuilding mutual trustBuilding mutual trustBuilding mutual trust

Social Capital isSocial Capital is

Formation ofFormation of groupsgroups

Group Group collaborationcollaboration

StrengtheningStrengthening collective identitycollective identity

Constructing Constructing a shared a shared futurefuture

Bonding Bonding Social Social CapitalCapital

Bridging Bridging Social Social CapitalCapital

StateState

MarketMarket

Civil Civil SocietySociety StateState

MarketMarket

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Social CapitalSocial Capital

BondingBonding– Tight, exclusive Tight, exclusive

networksnetworks

– Strong distinction Strong distinction between insiders and between insiders and outsidersoutsiders

– Single answer focusSingle answer focus

BridgingBridging– Open and flexible Open and flexible

networksnetworks

– Permeable and open Permeable and open boundariesboundaries

– Legitimization of Legitimization of alternativesalternatives

Community Community Social Capital TypologySocial Capital Typology

BRIDGING SOCIAL CAPITALBRIDGING SOCIAL CAPITAL

B B O O

N N D D I I

NNG G

S. S. C.C.

--

--

++

++Conflict with Conflict with

outside/ outside/ internal internal

factionalismfactionalism

InclusionInclusion--Horizontal Horizontal ties w/in community; ties w/in community; diverse horizontal/ diverse horizontal/

vertical ties to outside)vertical ties to outside)

Apathy; Apathy; Extreme Extreme

individualismindividualism

Clientelism Clientelism internal & external ties internal & external ties

are mainly verticalare mainly vertical

Typology of Social Capital Typology of Social Capital and Community Changeand Community Change

BRIDGING SOCIAL CAPITALBRIDGING SOCIAL CAPITAL

B B O O

N N D D I I

NNG G

S. S. C.C.

--

--

++

++

Community resists Community resists externally initiated externally initiated

change; or in-change; or in-fighting negates fighting negates change effortschange efforts

Locally initiated Locally initiated change driven by change driven by

community-defined community-defined goals, w/links to goals, w/links to

external resourcesexternal resources

Wealthy solve prob-Wealthy solve prob-lems with financial lems with financial

capital; the poorcapital; the poor have few optionshave few options

Community changeCommunity changedominated by local/dominated by local/extralocal “bosses” extralocal “bosses”

or “power elite”or “power elite”

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Social Reconnaissance, Social Reconnaissance, Social Capital:Social Capital:

Field Research by a Student Team to Field Research by a Student Team to Inform a Participatory Community Inform a Participatory Community

Development ProjectDevelopment Project

Brent Hales, Peggy Petrzelka, Vern Ryan, Jeff Brent Hales, Peggy Petrzelka, Vern Ryan, Jeff Zacharakis-Jutz,Zacharakis-Jutz, Sandy Trca-Black, Sandy Trca-Black,

and Jan Floraand Jan Flora

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Core Organizations in RiversideCore Organizations in Riverside

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Reputational Leaders by ReligionReputational Leaders by Religion

0

10

20

30

40

50

60

70

80

90

Catholic Presby. & Lutheran

RepresentRiverside

Supportneeded

Projectimplementer

Projectstopper

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Reputational Leaders by AgeReputational Leaders by Age

0

10

20

30

40

50

60

70

40 or less 41-55 56+

Represent Riverside Support neededProject implementer Project stopper

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Reputational Leaders by GenderReputational Leaders by Gender

0

1020

3040

5060

7080

90

100

Male Female

RepresentRiverside

Supportneeded

Projectimplementer

Projectstopper

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Old Guard vs. NewcomersOld Guard vs. Newcomers

0

10

20

30

40

50

60

70

80

Old Guard Newcomer

Represent Riverside Support needed

Project implementer Project stopper

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Riverside Residents’ Assessment Riverside Residents’ Assessment of Social Capitalof Social Capital

AcquaintanceshipAcquaintanceship % of adults you know by name in R% of adults you know by name in R ++ % of close friends living in Riverside% of close friends living in Riverside ++ Can usually find someone to talk to in River T.Can usually find someone to talk to in River T. ++

People in Riverside are--People in Riverside are-- Trust Trust friendly/unfriendlyfriendly/unfriendly ++ supportive/indifferentsupportive/indifferent ++ trusting/not trustingtrusting/not trusting ++

Community ActionCommunity Action Concern about the communityConcern about the community -- People work together successfullyPeople work together successfully -- Existence of community spiritExistence of community spirit --

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Leadership -- Capacity BuildingLeadership -- Capacity Building

Leadership isLeadership is– generally considered a characteristic of individualsgenerally considered a characteristic of individuals

– an aspect of human capital.an aspect of human capital.

Capacity buildingCapacity building– is broader than leadershipis broader than leadership

– is more likely to be a characteristic of groups is more likely to be a characteristic of groups (organizations, communities, etc.)(organizations, communities, etc.)

– strengthens human capitalstrengthens human capital

– is facilitated by and contributes to is facilitated by and contributes to

social capitalsocial capital

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Social Capital, Social Infrastructure, Social Capital, Social Infrastructure, and Collective Actionand Collective Action

An Empirical Modeling of the An Empirical Modeling of the Relationships in 99 Iowa CommunitiesRelationships in 99 Iowa Communities

Kerry Agnitsch, ISUKerry Agnitsch, ISU

Jeff Sharp, O(hio)SUJeff Sharp, O(hio)SU

Vern Ryan, ISUVern Ryan, ISU

Jan Flora, ISUJan Flora, ISU

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Indicators of Community ActionIndicators of Community Action

7 housing activities 7 housing activities 5 actions to promote economic development5 actions to promote economic development 4 locally oriented action by financial institutions4 locally oriented action by financial institutions 4 community-oriented actions by local churches4 community-oriented actions by local churches activity level of 8 types of local civic activity level of 8 types of local civic

organizationsorganizations activity level of city government and Chamber of activity level of city government and Chamber of

Commerce (2)Commerce (2)

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Elements of Bonding Social Elements of Bonding Social Capital MeasureCapital Measure

Proportion of friends living locallyProportion of friends living locally Percent of persons who report greater involvement Percent of persons who report greater involvement

with local, than with outside, organizations with local, than with outside, organizations Percent of persons who attend church locallyPercent of persons who attend church locally Percent of persons who work locallyPercent of persons who work locally Percent of persons who shop for daily needs Percent of persons who shop for daily needs

mostly in their home communitymostly in their home community Percent of persons who stay in their home Percent of persons who stay in their home

community for recreation/entertainmentcommunity for recreation/entertainment

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Social Capital and Community Social Capital and Community Action, 99 Iowa CommunitiesAction, 99 Iowa Communities

Bridging SC: LinkagesBridging SC: Linkages Sig.<.01; (pos.)Sig.<.01; (pos.)

Bonding Social CapitalBonding Social Capital Sig.<.01 (pos.)Sig.<.01 (pos.)

Interaction: Bridge x BondInteraction: Bridge x Bond Sig.<.01Sig.<.01

PopulationPopulation n.s.; positiven.s.; positive

Distance to SMSADistance to SMSA n.s.; positiven.s.; positive

Bridging SC: InclusivenessBridging SC: Inclusiveness n.s.; no relationn.s.; no relation

RR22 .67.67

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Conclusions from Iowa StudyConclusions from Iowa Study

Bridging and bonding social capital clearly foster Bridging and bonding social capital clearly foster community action. Where both are low or absent, community action. Where both are low or absent, community action is largely ineffective. community action is largely ineffective.

Strengths in one form of social capital can Strengths in one form of social capital can compensate for weaknesses in the other, but only compensate for weaknesses in the other, but only partially. It is better to have a balance.partially. It is better to have a balance.

Further analysis is needed to determine if bridging Further analysis is needed to determine if bridging and bonding social capital lead to different kinds and bonding social capital lead to different kinds of community action. of community action.   

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Bridging and Bonding Social Capital Bridging and Bonding Social Capital as Substitutes for One Anotheras Substitutes for One Another

Examples:Examples: – bedroom community to a larger trade or urban bedroom community to a larger trade or urban

center with strong bridges, but weaker bonds sees center with strong bridges, but weaker bonds sees local projects to fruition.local projects to fruition.

» Newcomers active as leaders; Newcomers active as leaders; » not afraid of controversy.not afraid of controversy.

– A more isolated community, short on bridging A more isolated community, short on bridging ties, uses high bonding social capital for ties, uses high bonding social capital for community self-development. However,community self-development. However,

» when controversy arises, project is shelved; when controversy arises, project is shelved;

» not very effective in poverty reduction.not very effective in poverty reduction.

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Social Capital and Local Economic Social Capital and Local Economic Development in Nonmetro USDevelopment in Nonmetro US

Jan Flora, Jan Flora,

Jeff Sharp,Jeff Sharp,

Cornelia Flora, Cornelia Flora,

and and

Bonnie Newlon Bonnie Newlon

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% of projects with at least one --% of projects with at least one --

0

10

20

30

40

50

Woman Newcomer Person < 40

Self Develop Industrial Recruit

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Building Bridging Social Building Bridging Social Capital Through…Capital Through…

Strengthened relationships and Strengthened relationships and communicationcommunication – increased interactions among increased interactions among unlikelyunlikely

groups within the communitygroups within the community– increased interactions among unlikely increased interactions among unlikely

groups outside the communitygroups outside the community– increased availability of information and increased availability of information and

knowledgeknowledge

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Linking Bonding and Bridging Linking Bonding and Bridging Social Capital Through…Social Capital Through…

Improved community initiative, Improved community initiative, responsibility, and adaptability responsibility, and adaptability – build a shared visionbuild a shared vision

– focus first on internal resourcesfocus first on internal resources

– look outside for alternative ways to look outside for alternative ways to respond to constant changesrespond to constant changes

– loss of the victim mentalityloss of the victim mentality

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Summary: Why Community Summary: Why Community Social Capital?Social Capital?

Bridging and bonding social Bridging and bonding social combine to combine to – cut transaction costscut transaction costs– contribute to other forms of contribute to other forms of

capitalcapital– enhance flexibilityenhance flexibility– foster greater equality foster greater equality – encourage new ways of thinkingencourage new ways of thinking

ToToAssetAssetMappingMapping

FromFromNeedsNeedsAssessmentAssessment

FromFromIndividualIndividualLeadershipLeadership

ToToCommunityCommunityCapacityCapacity

ToToCapacitiesCapacities

FromFromDeficienciesDeficiencies

ToTo

CitizensCitizens

FromFrom

ClientsClients

ToToInterdependenInterdependencece

FromFromDependencyDependency

ToToBuilding Building from from WithinWithin

FromFromIndustrialIndustrialRecruitmentRecruitment

ToToInternalInternalAccountabilityAccountability

FromFromExternalExternalEvaluationEvaluation

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We make a living by We make a living by what we get.what we get.

We make a life by We make a life by what we give.what we give.