Influence of Social Capital on Small and Medium Enterprises Performance in Wakiso District, Uganda
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Date
2023-01-11
Journal Title
Journal ISSN
Volume Title
Publisher
International Journal of Accounting and Management Information Systems (IJAMIS)
Abstract
Purpose: This study examined the influence of Social Capital (SC)
on the performance of Small and Medium Enterprises (SMEs) in
Wakiso District. Specifically, we identified forms of SC and
assessed how they influenced SMEs’ performance in Kitemu Ward.
Research methodology: Using qualitative and quantitative
methodologies, the study solicited data from 40 participants through
interviews and a self-administered questionnaire. Data were edited,
cleaned, coded, and entered into MS Excel to generate frequencies
and graphs. Content value analysis was used to transcribe the
qualitative data and group them into subthemes.
Results: The results revealed internal forms of SC, such as
friends/peers, trustworthiness, personal saving, family, and social
links, while external forms of SC were customers, financial
institutions, governments, and companies. Further, SC influences
the customer base, leads to high profits, increases sales volume, and
enhances creativity and innovation.
Limitations: Financial constraints prevented researchers from
eliciting data throughout the study area. Furthermore, the small
sample size might limit the generalization of the study results to the
entire district. In addition, time and data collection biases have
implications for this study.
Contribution: This study is vital because there are no studies
carried out in Kitemu Ward on SC and its influence on SMEs’
performance. The findings can be used by policy and decision-
makers to design mechanisms for SMEs’ proprietors to integrate SC
into business operations. The literature reveals that SC forms
enhance sales, profits, market share, customer base, and
accessibility to finance.
Novelty: This original study was conducted primarily among
women proprietors and managers of SMEs because they are reliable
and provide firsthand information as compared to men. Thus, if
adopted, the findings are vital for other business proprietors and
managers to improve business performance.
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Citation
Mbowa, H. S., Businge, M. P., Ssemaluulu, P., & Eton, M. (2023). Influence of Social Capital on Small and Medium Enterprises Performance in Wakiso District, Uganda. International Journal of Accounting and Management Information Systems, 1(1),