2021/04/24 by Christopher Boudreaux, George R. G. Clarke, Boudreaux, Christopher +3
Business, Management and Accounting · #Entrepreneurship Studies and Influences #Family Business Performance and Succession
paper · pdf · doi:10.48550/arxiv.2104.12004
How does an entrepreneur's social capital improve small informal business\nproductivity? Although studies have investigated this relationship, we still\nknow little about the underlying theoretical mechanisms driving these findings.\nUsing a unique Zambian Business Survey of 1,971 entrepreneurs administered by\nthe World Bank, we find an entrepreneur's social capital facilitates small\nbusiness productivity through the mediating channels of firm financing and\ncustomer relationships. Our findings identify specific mechanisms that channel\nsocial capital toward an informal business' productivity, which prior studies\nhave overlooked.\n