The Capital Use of Social Capital or How Social Capital is Used to Keep Capital Concentrated

This paper addresses the role of social capital networks in the accumulation of large sums of money for investment. In particular, the study undertakes an analysis at the micro level of individual actions involved in the actual process by which social capital is converted into capital, i.e. money. This analysis highlights the social-facilitating functions and processes of social capital networks, while focusing attention on the essential relationship between social capital and money. Our analysis clearly indicates that social capital is the means of production in a type of venture capitalism and is the real means by which the accumulation of capital itself is controlled. Perhaps even more importantly, our findings show that these networks exist to ensure that any profit made by the members of the network remains within the network and does not flow to other networks of financially elite individuals nor trickle down to individuals who are not financially elite.

Keywords:

Social Capital Networks, Venture Capital, Forms of Capital Micro Level, Concentration of Capital,

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