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
