The Influence of Structural Social Capital on Performance of Social Enterprises in Nairobi City County, Kenya

Abstract

Social capital is becoming an increasingly subtle part of achieving social economic goals especially in grassroots of a developing country. Kenya is in an infantile state of appreciating social capital as a panacea for economic growth albeit the developing economic status of the country. The study focused on examining the influence of structural social capital on the performance of social enterprises in Nairobi city county, Kenya. Mixed methodology was applied in the study that also adopted a descriptive cross sectional survey design.  The target population was 300 composed of registered social enterprises in Nairobi County. 107 social enterprises were selected through simple random sampling. Self administered, semi- structured questionnaire was administered. The reliability of the research tool was established through a pilot test retest procedure, whose cronbanch alpha was established to be above 0.7. Descriptive and inferential statistics methods were adopted for data analysis. Hypothesis was tested using ANOVA. To test for statistical significance of the relationship of the variables Pearson’s moment correlation and chi-square were used. The regression analysis for structural social capital on performance yielded regression coefficient of 0.262, p=0.049<0.05. This implies that the Structural Social Capital have positive influence on Performance of Social Enterprise that is statistically significant at 5%. H₀= Structural social capital does not influence social enterprise performance was rejected.

Keywords: Structural social capital, Social enterprise, Performance, Social transactions, Embeddedness

DOI: 10.7176/EJBM/11-7-11

Publication date:March 31^st 2019