This paper aims to explore how social capital facilitates the process of social innovation in community-based enterprises. We draw insights from two case studies of APROPESCA and CORSEDA in the El Cauca region of Colombia that engage local rural communities in trout fishing and silk production respectively. We draw upon qualitative responses collected through multiple methods including semi-structured interviews with organisational and external informants, workshops engaging local communities and participant observations.

Findings of our study illustrate that where social capital of local communities and institutions involved were not developed, government interventions failed to ensure the sustainability of the CBE.  In contrast, when strong social capital was developed and maintained through active participation of community members the CBE’s viability and economic success were ensured. Our findings have implications for development initiatives aiming to empower local communities and bring about sustainable development.