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Small and medium crafts entreprises are important and growing business in Bali province as supporters of the tourism sector. In crafting Businessmen in Gianyar regency was strongly bound by the implementation of social capital in supporting production activities. This study aims to determine the role of social capital in the forms of participation in the networking, mutual trust, mutual giving (reciprocity), social norms, and values to negate the use of loan capital. Qualitative research design (post positivism) against 20 key informants using an interactive interpretive analysis showed that social capital in the forms of participation in the net working, trust, resiprocity, social norms and values are very important role in reducing dependence on the use of loans. In the life of Balinese people, the implementation of social capital values is a culture of everyday life in all aspects of life, such as mutual cooperation culture, profit sharing institutions, various forms of local wisdom, that all ethnic groups have, mutual reciprocity, trust each other, help each other, application of ethics and morals as well as values that originate from religious teachings. Social capital can actually be developed as part of modern economic culture. So far, social capital has been tested by history as an important mechanism, such as the mutual cooperation and family spirit in Bali that capable of becoming a medium of economic growth and equity in the application of Village Credit Institutions (LPD) empowerment, the establishment of various public and religious facilities, most of which pure self-help community in Bali. Therefore, in the economic empowerment of people who are concerned, the role of social capital is very important. The main conclusions of this study are as follows: Social capital through the variables of participation in the networking, self-confidence (trust), mutual giving (reciprocity), social norms, and values are important variables in saving business capital in the SMEs in Gianyar Regency. This study instituted a major proposition: that the social capital has strong ability to reduce of using loans.