How to Raise Social Capital and Why Women Are the Masters of this Art
Why Social Capital Is the Key to Entrepreneurial Success
Social capital is one of the most undervalued forms of capital in business, yet it yields the highest ROI when approached with intention.
But why is this?
For years, “networking” carried a negative connotation, especially among women. Traditional networking events, often designed by men for men, became synonymous with business cards, small talk, and uncomfortable environments. Women in business frequently expressed feeling out of place at these events—and they weren’t wrong. These setups weren’t designed with us in mind.
The Female Advantage in Building Social Capital
Women are natural relationship builders. We thrive on meaningful connections and conversations. Where men may prioritize exchanging information, women enter interactions with emotional intelligence and intuition, building powerful relationships that are mutually beneficial.
The traditional networking model may not have suited us, but we excel at creating and leveraging social capital to achieve our goals. And that’s where the future of business lies.
What Is Social Capital?
Social capital is the blending of two critical elements for business success:
Social: Building and leveraging relationships with like-minded people who provide mutual value, ultimately increasing your chances of success.
Capital: The resources—most commonly money—a business raises to grow, expand, or transform.
In essence, social capital refers to relationships and money, the two most important resources an entrepreneur needs to start and grow a business. By focusing on raising social capital intentionally, you can ensure your business thrives.
How to Raise Social Capital for Your Business
Always Be Connecting (ABC)
Dedicate 30 minutes daily to expanding your network. Whether through commenting on social media posts, sending emails, attending events, or hopping on Zoom calls, the key is to consistently grow your network. Before reaching out, research your contact to find commonalities and tailor your message—this makes connections more authentic and valuable.
Work In Your Network
In addition to expanding your network, spend 30 minutes daily nurturing your existing connections. Follow up with people you’ve already connected with. Ask how their projects are progressing, offer support, and share exciting updates from your own business. Like any relationship, business connections require ongoing care.
Approach with an Abundant Mindset
The most important step in raising social capital is believing in its value. Approach every interaction as if it could change your life. Be authentic, curious, and service-minded. When you enter conversations with the intent to help and collaborate, you naturally build stronger connections.
Leverage Your Network
Once you've built and nurtured your network, it's time to leverage it. Your next client, sale, referral, or collaboration opportunity likely already exists within your network. When the first three steps are done right, your connections will be eager to help you succeed.
Know Your Numbers
Building social capital goes beyond just relationships. Stay on top of your finances—track expenses, revenue, and cash flow regularly. Maintaining financial clarity is key to long-term business success, because cash is king.
By focusing on these steps, you’ll build a powerful network that will propel your business to new heights. Social capital isn’t just an add-on; it’s the foundation for entrepreneurial success.
