Title: The Role of Social Capital in Enhancing Entrepreneurial Growth: A case study of Entrepreneurs at Kilolo.
Authors: Yohana Tweve
Volume: 8
Issue: 8
Pages: 53-66
Publication Date: 2024/08/28
Abstract:
This study investigated the role of social capital in enhancing entrepreneurial growth, focusing on a case study of entrepreneurs in Kilolo, Iringa. Social capital, encompassing social networks, trust, and community engagement, was examined to understand its influence on business success and development. A sample of 114 entrepreneurs were surveyed to assess key indicators such as the number of business networks, frequency of interaction, diversity of network members, support received, and trust within networks. The study found that entrepreneurs with extensive and diverse networks, frequent interactions, and high levels of trust experienced significant business growth. Active community engagement, including participation in local activities and contributions to community projects, was also positively correlated with entrepreneurial success. Notably, businesses with higher levels of innovation and expansion were those that effectively leveraged social capital. The study concludes that social capital is a critical asset for entrepreneurs, providing access to resources, fostering collaboration, and building resilience. Recommendations include encouraging entrepreneurs to expand their networks, fostering trust, and increasing community involvement. Additionally, the study suggests that government policies and local business associations play a vital role in supporting the development and utilization of social capital. Future research could explore the impact of social media networks, the longitudinal effects of social capital, and comparative studies across different regions and time.