This paper presents the role of family businesses in strengthening social capital. Its aim is to examine the impact of these enterprises on local society and their role in local society. In this paper, after the interpretation of family businesses, social capital, embedding, and local society, the impact of the examined family businesses on local society is presented. The method of this study was in-depth interviews conducted among the owners of 207 family businesses in Transdanubia counties: 128 in villages and small towns, and 79 in medium-sized and large cities were conducted. In the framework of the interviews, therelations of family businesses at the local level, their relations with social organizations, their identity and attachments, and their embeddedness were explored. The main results of the in-depth interviews are that in three of the five indicators examined, in the smaller settlements the embedded family companies have a stronger embeddedness and con-nection with the local society, in one case it is equally high. However, family businesses in larger settlements also have a very significant impact on local society, in terms of trust, reputation, family values, community relations and collaborations, social networking, and local identity