There has been no consensus in the literature about the relationship between social capital and small firms. Small firms have been thought to replace public goods that they cannot access; and there is anecdotal evidence of small and informal firms participating in associations and social capital groups. However, the survey of micro-establishments shows that only 3.3% of the firms surveyed are part of social capital groups. Using instrumental variables methodology it is estimated, with two different instruments. the effect of productivity per worker on participation in social capital groups. The results suggest that the most productive firms are more likely to belong to associations. In addition, two sensitivity exercises are performed, relaxing the assumption of exogeneity of the instruments, finding results in the same line.
