1 Entrepreneurial Communities: Bridging and Bonding Social Capital Jan L. Flora Extension Community Sociologist and Professor of Sociology Iowa State University

2 Resources n Can be -- –consumed –stored –invested n Can be -- –consumed –stored –invested

3 Capital Resources invested to create new resources

4 Community Capitals Social Capital Financial/BuiltCapital Human Capital Natural Capital Healthy ecosystem Vital economy Social equity

Building mutual trust Social Capital is Formation of groups groups Groupcollaboration Strengthening collective identity collective identity Constructing a shared future

Bonding Social Capital

Bridging Social Capital State Market CivilSociety State Market

8 Social Capital n Bonding –Tight, exclusive networks –Strong distinction between insiders and outsiders –Single answer focus n Bridging –Open and flexible networks –Permeable and open boundaries –Legitimization of alternatives

Community Social Capital Typology BRIDGING SOCIAL CAPITAL BONDING S. C Conflict with outside/ internal factionalism Inclusion - Horizontal ties w/in community; diverse horizontal/ vertical ties to outside) Inclusion - Horizontal ties w/in community; diverse horizontal/ vertical ties to outside) Apathy; Extreme individualism Clientelism internal & external ties are mainly vertical

Typology of Social Capital and Community Change BRIDGING SOCIAL CAPITAL BONDING S. C Community resists externally initiated change; or in- fighting negates change efforts Locally initiated change driven by community-defined goals, w/links to external resources Locally initiated change driven by community-defined goals, w/links to external resources Wealthy solve prob- lems with financial capital; the poor have few options have few options Community change dominated by local/ extralocal “bosses” or “power elite”

11 Social Reconnaissance, Social Capital: Field Research by a Student Team to Inform a Participatory Community Development Project Brent Hales, Peggy Petrzelka, Vern Ryan, Jeff Zacharakis-Jutz, Sandy Trca-Black, and Jan Flora

12 Core Organizations in Riverside

13 Reputational Leaders by Religion

14 Reputational Leaders by Age

15 Reputational Leaders by Gender

16 Old Guard vs. Newcomers

17 Riverside Residents’ Assessment of Social Capital Acquaintanceship n % of adults you know by name in R+ n % of close friends living in Riverside+ n Can usually find someone to talk to in River T.+ People in Riverside are-- Trust n friendly/unfriendly+ n supportive/indifferent+ n trusting/not trusting+ Community Action Community Action n Concern about the community- n People work together successfully- n Existence of community spirit-

18 Leadership -- Capacity Building n Leadership is –generally considered a characteristic of individuals –an aspect of human capital. n Capacity building –is broader than leadership –is more likely to be a characteristic of groups (organizations, communities, etc.) –strengthens human capital –is facilitated by and contributes to social capital

19 Social Capital, Social Infrastructure, and Collective Action An Empirical Modeling of the Relationships in 99 Iowa Communities Kerry Agnitsch, ISU Jeff Sharp, O(hio)SU Vern Ryan, ISU Jan Flora, ISU

20 Indicators of Community Action n 7 housing activities n 5 actions to promote economic development n 4 locally oriented action by financial institutions n 4 community-oriented actions by local churches n activity level of 8 types of local civic organizations n activity level of city government and Chamber of Commerce (2)

21 Elements of Bonding Social Capital Measure n Proportion of friends living locally n Percent of persons who report greater involvement with local, than with outside, organizations n Percent of persons who attend church locally n Percent of persons who work locally n Percent of persons who shop for daily needs mostly in their home community n Percent of persons who stay in their home community for recreation/entertainment

22 Social Capital and Community Action, 99 Iowa Communities Bridging SC: Linkages Sig.<.01; (pos.) Bonding Social Capital Sig.<.01 (pos.) Interaction: Bridge x Bond Sig.<.01 Population n.s.; positive Distance to SMSA n.s.; positive Bridging SC: Inclusiveness n.s.; no relation R2R2R2R2.67

23 Conclusions from Iowa Study n Bridging and bonding social capital clearly foster community action. Where both are low or absent, community action is largely ineffective. n Strengths in one form of social capital can compensate for weaknesses in the other, but only partially. It is better to have a balance. n Further analysis is needed to determine if bridging and bonding social capital lead to different kinds of community action. n Further analysis is needed to determine if bridging and bonding social capital lead to different kinds of community action.

24 Bridging and Bonding Social Capital as Substitutes for One Another n Examples: – bedroom community to a larger trade or urban center with strong bridges, but weaker bonds sees local projects to fruition. »Newcomers active as leaders; »not afraid of controversy. –A more isolated community, short on bridging ties, uses high bonding social capital for community self-development. However, »when controversy arises, project is shelved; »not very effective in poverty reduction.

25 Social Capital and Local Economic Development in Nonmetro US Jan Flora, Jeff Sharp, Cornelia Flora, Cornelia Flora,and Bonnie Newlon

26 % of projects with at least one -- % of projects with at least one --

27 Building Bridging Social Capital Through… n Strengthened relationships and communication –increased interactions among unlikely groups within the community –increased interactions among unlikely groups outside the community –increased availability of information and knowledge

28 Linking Bonding and Bridging Social Capital Through… n Improved community initiative, responsibility, and adaptability –build a shared vision –focus first on internal resources –look outside for alternative ways to respond to constant changes –loss of the victim mentality

29 Summary: Why Community Social Capital? n Bridging and bonding social combine to –cut transaction costs –contribute to other forms of capital –enhance flexibility –foster greater equality –encourage new ways of thinking

ToAssetMapping FromNeedsAssessment

FromIndividualLeadership ToCommunityCapacity

ToCapacities FromDeficiencies

ToCitizens FromClients

ToInterdependence FromDependency

ToBuilding from Within From Industrial Recruitment

ToInternalAccountability From External Evaluation

37 We make a living by what we get. We make a life by what we give. We make a life by what we give.