Although the literature on social capital has increased dramatically in recent years, concerns have been raised about the expanse of applications of the term, diversity of constructs, definitions and variety of analyses. The purpose of this article is to clarify the conceptualization of social capital in entrepreneurship.To achieve this, the article begins with a review of the extensive literature on social capital.This provides a preliminary theoretical framework about the nature and categories of social capital. Thereafter, an account is provided of an empirical study in which in-depth and extensive data were gathered about the social interactions of entrepreneurs from 10 technology firms. Findings demonstrate that social capital is a social relational artefact produced in social interactions. It is not owned but represents a pool of goodwill residing in a social network and it can be envisaged as a revolving mutual fund of traded and un-traded interdependencies.
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