This paper investigates the effects of social capital on the competitiveness of small and medium-sized enterprises, using entrepreneurial leadership as the explanatory variable. It employs a data set of 359 food and drink manufacturers in the south-west of England to develop a structural equation model of interdependence between social capital, leadership and entrepreneurship. The study reveals that social ties with local associations and professional services providers are predominant on both structural and relational dimensions. The resulting inadequate level of brokerage obstructs the market knowledge required for vision formulation, despite the fact that ‘hard work’, ‘continued improvement’ and ‘ambition’ are common shared values in this sector. The paper concludes by recommending training to fill the knowledge gaps impeding the sector's competitiveness.
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