Fostering social entrepreneurship through social capital approach: an empirical study in China

Purpose: The purpose of this paper is to examine the underlying mechanisms influencing the social entrepreneurial intentions of individuals in China, adopting social capital theory, bottom-up and people-based approach. The interrelated effects of intellectual capital (social community trust, social capital bonding and social participation) on social innovation tendency were measured. Design/methodology/approach: We recruited 502 Chinese individuals by utilising a reliable survey platform in China. This study used structural equation modelling as an analytical approach to examine the influence of social capital on social innovation and social entrepreneurship intention. Findings: The findings showed that social innovation tendencies mediate the relationship between social community trust, social capital bonding and social participation and the social entrepreneurial intentions of individuals. The findings support the tested hypotheses that social innovation tendencies are the key mechanism to translate into stronger social entrepreneurial intentions. An iterative framework emphasising transparency and open collaboration among stakeholders, which are vital for fostering social entrepreneurial intentions, was proposed. Originality/value: This is a novel empirical study to apply social capital theory to the field of social enterprises in the Chinese context using structural equation modelling, bottom-up, people-based approach and iterative model. The findings offer valuable practical insights for entrepreneurial and SME practices to foster social entrepreneurship through a people-based approach, emphasising the importance of fostering trust, strengthening social bonds, and encouraging active social participation.