Abstract
We explored how social capital acts as complementary collateral for young and small firms that need more collateral and hard information. For the articulation, we analyzed qualitative data from loan officers and strategic-level higher officials of private commercial banks, central banks, and other public and private institutions concerned with small business development and small firms’ owner-managers in Bangladesh. We found that branch-level loan officers consider individual bonding social capital in making financial decisions through individual-level social micro-ecosystems. With the assistance of loan officers, each social micro ecosystem creates entrepreneurial capabilities and an entrepreneurial ecosystem in its own managers. The findings provide grounds for maturing the field of social capital research in small and young firms