There has been much enthusiasm over the past ten years for the potential contribution of social enterprises to the regeneration of disadvantaged urban areas. This enthusiasm has far outstripped the availability of empirical evidence. This paper reports on a qualitative study of one social enterprise, a community café, and its contribution to building social capital in a disadvantaged urban area in London. The analysis reveals how the café builds ‘bonding’ and ‘bridging’ social capital whilst also addressing ‘downside’ social capital. Overall, the manager of the social enterprise played a considerable role in facilitating the development of social capital, thus emphasizing the importance of individuals and their attitudes, skills, and background in urban regeneration. However, the role of the social enterprise in building ‘linking’ social capital was minor. In this instance, more effective mechanisms of community engagement need to be put in place in order to empower local residents and organizations.