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Social capital and strategic network theory formed the basis for examining antecedents, impacts, and outcomes of formal networks organized for enhancing small community business success. Qualitative data derived from field interviews with small business network directors and members were used to identify five theoretical constructs and the potential relationships among those constructs.With insight from the interviews, hypotheses were derived and tested with quantitative data gathered via a telephone survey instrument with 377 small business owners who held membership in 1 of 29 networks operating in small communities across four Midwest states. Owners characterized their businesses as successful and likely to grow. Results of EQS modeling suggested that shared vision and resource sharing among network members significantly benefited members' businesses, and that these benefits were associated with a generalized perception of the advantages of network membership and positively affected members' future participation plans, thus furthering the likelihood of network continuance.

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This study critically reviews theoretical concepts and measurements of social capital and tests hypotheses that elaborate how four dimensions of social capital (informal social ties, formal social ties, trust, and norms of collective action) and sense of community are related to participation in community improvement activities for elderly residents in small towns and rural communities. Mail surveys of 2,802 elders in 99 small towns and rural communities in Iowa reveal that many elders are actively involved in their community. Social capital and sense of community are very important in predicting elderly participation in community improvement activities, but they relate differently to elderly community involvement. Formal ties and sense of community have much stronger relationships with community involvement than informal ties and norms of collective action. Generalized trust is not significantly related to elderly community involvement.

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