Abstract
Social capital has been proven in many studies to correlate with economic development and increment in standards of living in a collective manner. This chapter presents a brief description regarding social capital and micro-enterprises that narrowly focuses on the relationship between social capital theory and entrepreneurship. The chapter further portrays the varied dimensions of social capital followed by the status of social capital from the Malaysian perspective. Finally, the chapter ends with a discussion on the effect of social capital on competitive advantage, which has been presumed to be the most important aspect for micro-enterprises.
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