Now, social capital is something that is related to trust, goodwill and co-operation of any society, industry or organization. It is one of the most important topics of discussion in the field of management. It says that goodwill is the power, he source behind any improvement or progress in the society. This goodwill directly affects the society or the organization concerned which in turn influences the people or the target zone it is involved with, thus creating something called “the ripple effect”. This social capital thus helps in the growth of the industry or the society itself. This is where its interrelation with economics comes in.

Positive social capital is considered as an asset to the economy related to it. Social capital of any organization helps in improving their capital resources, building trust and goodwill with the people concerned with them and, thus, inviting many more opportunities for further growth and innovation. These are the basic requirements of improving economy of any field in the world.

Economy is not only centered on the amount of money an organization generates in a year, or the profit and losses it suffers in the stock market, even though we think of these when we talk about economics. But economics deals with an overall growth and progression of the society. It is about general well being and thus deals with everything that contributes to that. Now since finances are an important part of well being in today’s world, it forms a large part, but not the whole of the subject of economics.

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