Social capital is as important as the working capital of your company.
Investopedia describes social capital as “an economic idea that describes the relationship between individuals and entities that can have an economic value. Social networks that include people we trust and who can help can be an important asset. These relationships between individuals and companies can lead to a state in which everyone thinks of each other when things are needed to be done. “
All entrepreneurs need both financial and social capital to achieve success. Because when everything comes around, what does it help if you have stored completely when you do not have any customers? What is success when you don’t have someone to share it with? Only when both financial and social capital is secured can your company succeed.
Social capital is basically the vital link between your company’s success and your relationships.
What does success mean?
Have you ever experienced that you have reached a goal you have been striving for a long time, and then discover that it did not create the joy that you had expected? You laid down all the necessary work, invested time, money and energy, so what happened?
Psychologists Ken Sheldon and Tim Kasser conducted studies on objectives and concluded that “striving for inner harmony provides better goal fulfillment and better well-being. growth”.
In other words, in order to experience a sense of success that increases our well-being, our goals must be motivating and satisfying to achieve. In addition, our goals must include, confirm and improve our contact with and our relationships with others.
With this in mind, you can think about why an accomplished goal did not give the expected feeling, and it might be worth reflecting on whether your goals were achieved on their own or with other people. Or you might have to give up other important parts of your lifestyle to achieve the goal, such as relationships or interests.
Everything is about the people you surround yourself with
It is a common myth that the goal of running a business is that “I and I alone” are responsible for my company’s success. Although this way of thinking can be brave, the truth about running a successful business is the exact opposite. Success is social.
The quality of our relationships and our networks have a great impact on how successful our company becomes, and how good we will be. As we increase the quality of our relationships, we also increase our opportunities to succeed and prosper. To flourish is a term used in positive psychology, to describe the stage in which people experience positive emotions, a positive psychological function and a positive social function.
John F. Helliwell, a professor of economics at the University of British Columbia in Canada, has studied social capital and its impact on our well-being, and he concluded that social capital creates a more robust and reliable sense of happiness than that of the economy-based creating.
Other people are the key to our success. Our networks open up doors for us, regarding opportunities, contacts, presentations and so on. In addition, relationships are our source of support both when it goes well and badly. Our journey gets better when we have the opportunity to involve more people. Sharing joy, experiences and success – is more meaningful when you do it with others.
The point is that goals and successes become more meaningful when they involve other people.
Value of social capital
Every business owner knows that financial capital is important when running a business. Without it, your business has no way of getting started. Financial capital helps to keep the company afloat and ensures that production, distribution, marketing, development and growth can be kept going and much more.
In terms of financial capital, Ferratum Business offers SMEs smart, simple and fast business loans when they most need working capital.
Ferratum Business has designed lending in a way that allows companies to make an application that only takes a few minutes. Usually the application takes one working day and the companies get their working capital the following day. As you say, “time is money”.
As many Ferratum corporate customers use our services regularly, we are proud to have a network of satisfied customers.
Social capital is about your network, your friends, your supporters, your acquaintances and the shared values that exist between all these devices. At Ferratum Business we are happy to be part of your team.
Social capital investment
First and foremost, you need to expand your network by investing in people. How is it that the people who are closest to us and give us the most support can only take their place in our privacy? After all, your company is a big part of who you are and you spend at least 40 hours a week at work.
Reduce the gap by developing meaningful relationships in your business. Suppliers. Investor. All. Your investments will bring benefits to your business and make you happier.
As an entrepreneur running a small or medium sized business, you already have a network. No matter which industry you are in, you have friends, suppliers, printers and banks, and so on as you prefer. Which associations are you a member of? What events do you participate in? How can you become more involved?
When it comes to social capital, you do not have to limit yourself by thinking only of relationships outside your company. Start on the inside. It is important to create trust, cooperation and reliability with those who work for your company. Think of the people who are part of your team, your internal resources and their network. How can you deepen and strengthen these relationships? How can you help them?
The most important thing about social capital is giving, not just taking. Social capital requires that you have a helping, rewarding attitude. .
“Goodness is the only investment that can never go wrong.” – Henry David Thoreau
Social capital means being helpful, giving advice, and helping others without expecting anything in return. The good news is helping others make us feel better too.
What can you offer and who can you help? Who can you introduce? Who can you recommend? How can you share your knowledge and skills?
How can you strengthen your existing relationships and networks? For example, you can organize lunch with your suppliers or sellers every two weeks or once a month. You might be able to give lectures at universities, industry fairs or other events and offer future entrepreneurs and entrepreneurs advice and advice?
As a motivational guru and self-help writer Brian Tracy said:
Successful people always try to find ways to help others. Those who have not succeeded so well always ask “What can I get out of it?”
The answer is that you should always try to be helpful and give back.
Return on investments
You will see what good investment social capital is, the day you need advice and help, and all those you have helped on a previous occasion are ready to help with whatever you need.
It can Be in contact with a new customer or supplier. It can be a business opportunity. It can be helpful to find trainees or new employees. It can also be about legal advice. Whatever you need, your contact network will help you when you need it.
As an entrepreneur, you may have got used to doing everything yourself. But having a contact network with resources and utilizing the expertise of others can lift your business to new heights, in a way that you never expected. Thanks to your investment in your personal and professional contacts, you can collect all resources such as information, contacts, introductions and of course knowledge.
Success does not come by itself – Be grateful
It is important to remember that success does not happen by itself. In order to reach the position you have reached today you have probably received help along the way of dozens of people. Family members, friends, colleagues and mentors have all helped and supported you and your business in one way or another.
It doesn’t matter how hectic it is and how stressed you can become when running your own business, it is important to calm down sometimes and remember and thank all those who have helped you along the way. Let people know you appreciate them. With a little gratitude you reach far.
“If you count all your assets, you always make a profit.” – Robert Quillen
Never assume that people know you appreciate them. Unfortunately, we rarely express our gratitude until it is too late, and often it is those people who would have been happiest to hear from us who can no longer hear us. Don’t wait until it’s too late.
When you think of your journey and everyone who has helped on the road, it often happens that you experience appreciation again, and that you realize what luck you have that has had such support and in many cases, from such an early age.
You may never have had to worry but always had strong support from your family, a family that always made sure you had food on the table and clothes on the body. These are things that you should be grateful for. Not everyone has got to know the love and support you have received – don’t take it for granted.
As an entrepreneur, it is possible that you have or have had a mentor or advisor. Telling someone to appreciate them is as important to you as it is to them. Perhaps even more so, as the teacher, author and radio personality Raheel Farooq said, “Gratitude is a greater compliment to oneself than to anyone else.”
Can you give some examples of social capital in the business world?
Social capital in the business world can take many forms. It can Be reviews that you write on LinkedIn or Facebook about a supplier or customer.
Can you put someone in contact with someone else in your contact network who could help their company? You may have heard of a job, and know someone who would fit perfectly.
It can be about giving off time and sharing their insights and knowledge about the industry to students, apprentices or other hopeful entrepreneurs.
Another type of social capital is what arises when you raise money for charitable organizations or provide a certain group of resources.
The list of ways you can help others is endless.
Expand social capital into your local environment
People are social beings and studies have shown that we experience joy when we do things together with others and for others.
The great thing about social capital is that it grows, the more it is used. You get an outlet for your friendliness more often, while your contact network is growing. In fact, social capital has no limits.
Think of your existing contact networks and expand these and build a society based on shared values, support, trust and reciprocity (ie the investment it means to do something for someone else without expecting anything in return).
In a society, social capital builds up trust, which can make financial transactions more effective. Think of the positive aspects that a society built on social capital can have for you, your contact network and your company.
“You are the sum of all the people you meet and interact with in the world. Whether it’s your family, colleagues or co-workers, the opportunities you have and the things you learned, everyone has come through the doors that others have opened for you. ”- Tanner Colby