<p>The development of social relationships appears to be a natural consequence of growing up in an organized social environment. Throughout their lives, human beings are embedded in social circumstances that bring them into contact with others, such as family reunions, gatherings of friends, working teams, meetings of volunteer associations, and so on. Despite that, there is still a widespread misunderstanding and lack of acknowledgment in our country of the term “Social Capital”. The knowledge gap is particularly evident in the informal sectors of Bangladesh. Informal sectors comprise people with relatively less formal education, who make extensive contributions to the nation’s economy. Therefore, this paper intends to address the significant knowledge gap regarding the term by providing a comprehensive overview of the concept and aims to inquire into how the bonding, bridging, and linking mechanisms of social capital influence the growth of the small informal ventures operating in the Khulna City of Bangladesh. Primary data for this research have been collected from the informal entrepreneurs and small business owners of Khulna City. A mixed research methodology has been employed in this study. Hence, a survey with self-administered questionnaires has been used to collect the primary quantitative data from the 150 respondents. For qualitative purposes, 5 informal entrepreneurs and small business owners from Khulna City have participated in open-ended, in-depth interviews. The findings of this paper demonstrate the importance of cultivating and maintaining valuable relationships through a user’s social network, as well as the likelihood of identifying and exploiting greater resources and economic prospects through everyday networking. This paper provides evidence suggesting a substantial positive impact of social capital on the growth of the informal sector in Bangladesh. The bonding social capital is found to be propelling the lives and livelihoods of urban informal vendors. So, future policy recommendations can be generated in the particular sector.</p>