Social capital and business performance: a study of female-owned SMEs in the Nigerian informal sector

ABSTRACT This research examined the effect of internal and external social capital on the business performance of female-owned small- and medium-scale enterprises (SMEs) in the Nigerian informal sector. Using a quantitative research approach, a cross-sectional survey of 400 female SME owners was carried out, and data analysis was implemented using the structural equation modelling. The research findings, therefore, validate the existence of a positive and significant influence of internal and external social capital on the business performance of female-owned SMEs in the Nigerian informal sector. However, external social capital had a stronger influence on business performance. The results of this study create further awareness and contribute to existing research on the importance of internal and external social capital in ensuring the business performance of female-owned SMEs in the Nigerian informal sector. The possibilities of more successful business outcomes are further enhanced through the increased usage of online networking and social media platforms.