Research Article

THE ROLE OF SOCIAL CAPITAL IN ENHANCING THE PROFITABILITY OF FEMALE-LED MICRO-ENTERPRISES IN URBAN NIGERIA

Sani Salawu Fatau1*, Abdulsalam Dauda2
1 Department of Business Administration, Faculty of Social & Management Sciences, Federal University, Birnin Kebbi, Kebbi State, Nigeria
2 Department of Business Administration Usman Danfodio University Sokoto
* Corresponding author: sanisalawufatau@fmskasujournals.org.ng
Published: Dec, 2025
DOI: 10.68022/kbmr.2025.qlx7urxe
Pages: 31-46
Views: 14
Downloads: 5

Abstract

This study assessed the role of social capital in improving the profitability of microbusinesses run by women in Lagos State, Nigeria. Specifically, the study investigates the impact of bonding, bridging, and linking social capital on business performance, drawing on the resource-based view, empowerment theory, and social capital theory. Structured questionnaires were used to gather data from 412 female microenterprise owners as part of quantitative research design. The results, which were obtained using Partial Least Squares Structural Equation Modelling (PLS-SEM), show that profitability is significantly and positively impacted by all three aspects of social capital. The significance of close-knit relationships for both financial and emotional support is demonstrated by bonding social capital (B = 0.215, p < 0.05). Bridging social capital (B = 0.251, p < 0.05) emphasizes how important larger networks are for getting access to fresh ideas and new markets. The most significant predictor of profitability was linking social capital (B = 0.422, p < 0.01), highlighting the importance of institutional ties in gaining access to official resources, support networks, and legitimacy. Thus, the study concludes that female entrepreneurs can greatly increase their profitability by utilizing various types of social capital. The study recommends policies that strengthen women's access to institutional networks and support systems to enhance their business success and economic empowerment in urban Nigeria.

Keywords

Social Capital Bonding Social Capital Bridging Social Capital Linking Social Capital Profitability of Micro-Enterprises

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How to Cite

Fatau, S. S., & Dauda, A. (2025). THE ROLE OF SOCIAL CAPITAL IN ENHANCING THE PROFITABILITY OF FEMALE-LED MICRO-ENTERPRISES IN URBAN NIGERIA. Kaduna Business and Management Reviews, 6(2), 31-46. https://doi.org/10.68022/kbmr.2025.qlx7urxe

S. S. Fatau, and A. Dauda, "THE ROLE OF SOCIAL CAPITAL IN ENHANCING THE PROFITABILITY OF FEMALE-LED MICRO-ENTERPRISES IN URBAN NIGERIA," Kaduna Business and Management Reviews, vol. 6, no. 2, pp. 31-46, December 2025. doi: 10.68022/kbmr.2025.qlx7urxe

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