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Keywords:

  • Indonesia;
  • livelihoods;
  • Makassar;
  • small-scale enterprises;
  • social capital

This article explores the importance of specific forms of social capital for small-scale enterprises while highlighting that such analyses must incorporate local sociocultural complexities. In Eastern Indonesia, small-scale entrepreneurs in Makassar city rely heavily on informal networks, linkages, and trust relationships for their livelihoods. This dependence reflects different social capital forms, embedded in local ethnic and social relations that are inclusionary for some, yet exclusionary for others. Findings show that although bonding social capital is prevalent, albeit with diverse implications, bridging social capital is less so, and linking social capital is virtually absent. A lack of the latter, combined with widespread corruption in the city, hinders livelihood progress for many local entrepreneurs.