Impact of social capital (SC) on business performance (BP) of Muslim women entrepreneurs (MWEs) in the Eastern Province of Sri Lanka (EPSL)

Abstract

Social capital (SC) is vital in the form of networks since it acts as an agent for change of information and resources that can enhance the success or continued existence of women owned business entities. This study aims to examine the impact of SC on business performance (BP) of Muslim women entrepreneurs (MWEs) in small and Medium Enterprises (SMEs) in the Eastern Province of Sri Lanka (EPSL). SC was measured with the dimensions of familial affiliation such as parents and or husband if married or support from any other family members, someone who acts as a role model, economic status during childhood and non-familial affiliations such as business associated or trade associations. Structured questionnaire was used as the data collection technique with the sampling frame of 260 respondents using simple random sampling technique. Structural Equation Modeling (SEM) with AMOS as the data analysis technique while employing SPSS 23.0. The analysis of the structural model showed that, non-familial affiliation had a significant and positive relationship with business performance of Muslim women entrepreneurs where as familial affiliation did not significantly influence on business performance of Muslim women entrepreneurs in Sri Lanka. In most of the conservative Islamic families, women are not often allowed go out of their homes and mix with their counter parts independently. This situation can be observed in Sri Lanka Muslim families specially, in the Eastern Province where majority come from rural areas. However, those who can break this situation and were able to make affiliation with the business associates and other related bodies could enhance their business performance. Muslim women entrepreneurs, trade chambers and decision making authorities may use this finding of the study as a template to gain insight in to the factors influencing social capital on business performance of Sri Lankan MWEs