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Abstract

The concept of social capital is gaining increasing popularity among economists and governance practitioners. This is due to the recognition of the fact that a high level of social capital is important for the creation of socio-economic development of countries or territories – economic areas with a high level of connections between entities, organisations and residents. The formation of social capital, understood as the ability to cooperate with various social groups and operate efficiently within these groups, depends on the political system as well as the adopted norms and attitudes, education, styles of management in business organisations and public sphere entities, family ties, motivation to act, etc. The aim of the paper is to indicate various limitations of social capital development and to demonstrate that it is important to involve different communities in its formation In addition, attention is drawn to the fact that social capital generates externalities that are essential for the efficiency and eff ectiveness of governance in territorial systems, both in the economic and public utility sphere.
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