Abstract

How does an entrepreneur’s social capital improve small informal business productivity? Although studies have investigated this relationship, we still know little about the underlying theoretical mechanisms driving these findings. Using a unique Zambian Business Survey of 1971 entrepreneurs administered by the World Bank, we find an entrepreneur’s social capital facilitates small business productivity through the mediating channels of firm financing (i.e., credit from suppliers, credit to customers, loans from friends and family) and customer relationships (i.e., more customers). Our findings, thus, identify specific mechanisms that channel social capital toward an informal business’ productivity, which prior studies have overlooked.

Plain English Summary

Small informal businesses are more productive when they build relationships with customers, extend credit to customers, and receive credit from suppliers and friends and family. Using a unique survey of 1,971 Zambian entrepreneurs administered by the World Bank, we observe that belonging to a business or social association enables these businesses to extend credit, receive credit, and build relationships. Our findings provide more specific mechanisms that channel social capital toward an informal business’ productivity, which prior studies have overlooked. Thus, our main policy recommendation is that entrepreneurs, especially from informal businesses and developing contexts, should focus on networking to foster customer and professional relationships and enhance access to capital, which can help foster firm productivity.

中文翻译：

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社会资本和小型非正规企业生产力：融资和客户关系的中介作用

摘要

企业家的社会资本如何提高小型非正规企业的生产力？尽管研究已经调查了这种关系，但我们仍然对推动这些发现的潜在理论机制知之甚少。使用世界银行对 1971 年企业家进行的一项独特的赞比亚商业调查，我们发现企业家的社会资本通过企业融资的中介渠道（即来自供应商的信贷、对客户的信贷、朋友和家人的贷款）促进了小企业的生产力，并且客户关系（即更多的客户）。因此，我们的研究结果确定了将社会资本导向非正式企业生产力的特定机制，而先前的研究忽略了这一点。

简单的英语摘要

小型非正式企业在与客户建立关系、向客户提供信贷以及从供应商、朋友和家人那里获得信贷时会更有效率。通过对世界银行管理的 1,971 名赞比亚企业家进行的一项独特调查，我们观察到，属于企业或社会协会使这些企业能够提供信贷、获得信贷和建立关系。我们的研究结果提供了更具体的机制，将社会资本引导至非正式企业的生产力，而先前的研究忽略了这一点。因此，我们的主要政策建议是企业家，尤其是来自非正规企业和发展中环境的企业家，应专注于建立网络以促进客户和专业关系并增加获得资本的机会，这有助于提高公司生产力。