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

Ojong, N and Simba, A ORCID: https://orcid.org/0000-0002-0276-8211, 2019. Fostering micro-entrepreneurs' structural and relational social capital through microfinance. Journal of Small Business & Entrepreneurship, 31 (1), pp. 1-20. 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:	2019
Volume:	31
Number:	1
ISSN:	0827-6331
Identifiers:	Number Type 10.1080/08276331.2017.1423161 DOI 657401 Other
Divisions:	Schools > Nottingham Business School
Record created by:	Linda Sullivan
Date Added:	24 Jan 2018 11:29
Last Modified:	05 Mar 2020 16:24
URI:	https://irep.ntu.ac.uk/id/eprint/32528

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