Fostering micro-entrepreneurs' structural and relational social capital through microfinance

Ojong, N. and Simba, A. ORCID: 0000-0002-0276-8211, 2018. Fostering micro-entrepreneurs' structural and relational social capital through microfinance. Journal of Small Business & Entrepreneurship. ISSN 0827-6331

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Abstract

This paper uses a multi-dimensional perspective on social capital to investigate how a microfinance institution can enhance the social capital of poor entrepreneurs. Findings show that by creating an environment that encourages frequent meetings and interactions between borrowers, group-based microfinance facilitates the development of relational trust and expansion of the network size of micro-entrepreneurs. An increase in levels of structural and relational social capital, in turn, leads to numerous advantages in terms of the flow of a diversity of resources. Ensuring access to financial capital, creating an enabling environment that fosters structural and relational social capital, and providing training would constitute a much better approach to helping poor entrepreneurs.

Item Type: Journal article
Publication Title: Journal of Small Business & Entrepreneurship
Creators: Ojong, N. and Simba, A.
Publisher: Taylor & Francis
Date: 22 January 2018
ISSN: 0827-6331
Identifiers:
NumberType
10.1080/08276331.2017.1423161DOI
Divisions: Schools > Nottingham Business School
Depositing User: Linda Sullivan
Date Added: 24 Jan 2018 11:29
Last Modified: 24 Jan 2018 11:37
URI: http://irep.ntu.ac.uk/id/eprint/32528

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