Generating social capital? The social economy and local economic development

In seeking to understand and promote long-term and inclusive models of local economic development the notion of social capital appears potentially important. In the development of the social economy, an aspect of the local economy which has attracted an increased theoretical and policy focus in recent years, the relationship with social capital appears particularly significant-Yet despite the apparent salience of notions of social capital, there remains a lack of understanding of the nature and extent of existing social capital resources and the precise manner in which these are drawn upon in the development of the social economy to generate further social capital within the local development process. In part this is a result of the conceptual confusion surrounding the notion of social capital, but it also reflects a lack of empirical research. This article explores the notion of social capital and the manner in which it is produced, reproduced and used locally within the social economy as part of the local economic development process. Findings are presented from a transnational European research project which examined the development of social enterprises and the social economy within different localities in order to seek to better understand their interrelationships with the local production and use of social capital. These findings emphasize the importance of contextualization in the study of local social capital and the importance of interpretative approaches for area-based policy development.