Thanks for that. Adding the final fix as it might be useful for others trying to do sql queries on a local mySQL database.
The solution was to run the following;
Needs["DatabaseLink`"]
OpenSQLConnection[]
This opens up a database connection tool. Using this tool, I was able to insert the settings for the database and add it to the connections in the "connection tool". I called the database "SocialData" in the connection tool. Once the database had been added in the connections tool I could then run;
Needs["DatabaseLink`"]
SQLExecute[
OpenSQLConnection[
"SocialData"], "SELECT * FROM `table1` WHERE \
`test`='abc' LIMIT 10 "]
This is working nicely now. Many thanks.