ABSTRACT
This study examined the influence of social capital on the growth of small business enterprises in Benin City, Edo State. The main objectives of the study were to find out the relevance of social capital formation in small business network marketing, determine how small business owners/managers utilize social capital in networks to improve marketing performance, and examine how social capital impact the growth of small business enterprises in Nigeria.
In the light of the main and specific objectives of this study, a descriptive research design was adopted. The study employed questionnaire to elicit information answering the research questions and hypotheses. The findings from the study revealed that social capital has improved SMEs profitability, social capital has helped SMEs to increase their customers’ satisfaction, social media marketing improves SMEs patronage, and also that most SMEs use social capital to promote their businesses in Nigeria. Moreso, the study revealed that social capital allows small business owners get more reviews from their customers and allow them get complaints from customers as well as enables small business owners gain more access to potential customers and get feedbacks from their potential customers, and also create product awareness to potential customer.
The study recommended that entrepreneurs should adopt social capital network so as to help them in getting current and relevant information from far and wide to run their businesses, government should create enabling environment for businesses to thrive by ensuring the provision of sufficient and satisfactory infrastructural tools that will enhance business growth of manufacturing small scale business in Nigeria, entrepreneurs should invest on ICT and particularly on social capital network so as to enhance their operations which will result in the growth of their businesses, periodic training in the form of workshops and sensitization programs on the use of social capital networks in businesses should be organized by SMEDAN for small scale business operators to create more awareness in order to enhance their preparedness to institute ICT programs aimed at improving their business operations, and owners/managers of small scale businesses should endeavour to learn and adopt social media in order to fit into the business world at large since the world is becoming a global village.
