|From GDJ's Clipart, Openclipart.org|
Sociologists and economists have been writing about it for years -- social capital -- and I am embarrassed to say that I have just started learning about it.
Social capital is a value that media entrepreneurs possess through their ethnic, social, professional, and business networks. It is also a value that they create through their work's impact on society.
Investors, the public, and the media entrepreneurs themselves have tended to undervalue their work because it is hard to place a value on their social capital. By contrast, it is easy to value a publication through the advertising and subscription revenue it generates and the capital assets it owns.