This paper focuses on the interaction between social capital and entrepreneurship in Aboriginal communities in Canada. Using statistical and interview data from three First Nations communities in northern Ontario, I examine if and how bonding networks turn into tangible resources for business development. The paper also highlights ways in which community relationships hinder entrepreneurship and turn into barriers to economic development. The paper concludes with examples of how insight into the interaction between public policy and social networks can help understand the barriers and opportunities facing community developers in marginalized communities around the world.