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The purpose of this study was to identify the elements of virtuous cycle to lay a foundation for the coevolution of corporations and communities based on the entrepreneurship and social capital of social enterprises. The study first set out to add the pursuit of social goals to the components of entrepreneurship, namely innovation, progressive spirit, and risk sensitivity and categorized social capital into structural, cognitive, and relational capital. The study set six hypotheses and performed correlation and regression analysis to empirically analyze mediator effect of social capital in relationship between entrepreneurship and social enterprise performance. The findings were summarized as follows: First, relational capital had full mediated effect between entrepreneurship and economic performance of social enterprise. Second, relational capital had full mediated effect between entrepreneurship and social performance of social enterprise.

The Mediator Effect of Social Capital in Relationship between Entrepreneurship and Social Enterprise Performance