Open AccessThe Myth of Social Capital in Development of Small and Medium Enterprises: A Case Study of Handloom Industry at Peshawar Valley
Author(s) -
DR. MUJIB UR RAHMAN,
Abdur Rahman,
Shah Raza Khan
Publication year - 2021
Publication title -
journal of business and tourism
Language(s) - English
Resource type - Journals
eISSN - 2521-0548
pISSN - 2520-0739
DOI - 10.34260/jbt.v5i1.122
Subject(s) - social capital , relational capital , business , profitability index , government (linguistics) , capital (architecture) , small and medium sized enterprises , investment (military) , individual capital , sample (material) , marketing , industrial organization , order (exchange) , financial capital , economic growth , human capital , economics , finance , sociology , intellectual capital , social science , linguistics , philosophy , chemistry , archaeology , chromatography , politics , political science , law , history
The purpose of this study is to analyze the role of social capital in development of small and medium enterprises in Peshawar Valley. Relational capital such as business relational capital and social relational capital is used as tools of social capital. Firm performance is measured using attributes like profitability and future viability. A cross sectional, descriptive and analytical research design is adopted using a representative sample of 169 manufacturing weavers. Data is collected using a self-administered questionnaire. The findings reveal a significant and positive relationship between relational capitals, firm performance. It is recommended that investment in social capital improves firm performance with a positive impact on wellbeing of overall community. Therefore, managers should intensify initiatives to encourage greater understanding and acceptance on relational capital elements, employ a viable relational capital composition that includes building strong social relational ties with the community and government and pay attention to customers and employees in order to identify their needs and provide them with optimal values. This is likely to increase firm performance and development the small and medium enterprises.