Ogunrinola, I. O.
Social capital and earnings
distribution among female
micro-entrepreneurs
in rural Nigeria.
African Journal of Economic and Management Studies, Vol. 2 (No. 1).
pp. 94-113.
Abstract
Purpose – The purpose of this paper is to examine the role that social capital plays in the
determination and distribution of business earnings of female entrepreneurs in selected rural
communities of Ogun State, Nigeria.
Design/methodology/approach – The theoretical foundation of social capital and its relationship to
informal finance was used in a modified Mincer’s model to examine the distribution of earnings among a
sample of members of informal self-help groups. The study relied on a set of secondary data collected
from a survey of 275 female micro-entrepreneurs in five rural communities in Ogun State, Nigeria. The
analysis of data was done with the use of SPSS computer software while the ordinary least squares
regression technique was used in the models’ estimation.
Findings – The findings show that though human capital variables contribute to earnings in the usual
Mincer’s parlance, social capital as well as neighbourhood effect variables appear much more important
determinants.
Originality/value – The study quantified and applied five social capital variables in the estimated
earnings function and three of these variables were found to be statistically significant in their effects on
earnings distribution among the study sample. The study concluded by advocating a multi-disciplinary
approach to the study of enterprise development as well as a coordinated approach by the government to
promote self-help organisations among women in the rural areas.
Keywords Nigeria, Women, Entrepreneurialism, Microeconomics, Rural regions, Social networks
Paper type Research paper
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