Social capital and SME’s performance in the Accra Metropolis, Ghana

This study sought to examine the relationship between the components of SMEs social capital and firm performance. Using the social capital theory and the resource-based view as the theoretical foundations and census, 1,532 SMEs were selected in the Accra Metropolis for the study. Empirical results from 717 SMEs, utilising the hierarchical linear regression model, revealed that owner/manger’s network relationships are beneficial to the firm depending on when the relationships are closed or opened. Moreover, the study found that social capital has a significant impact on the sales and market performance of small and medium-sized enterprises. The results also brought to the fore the fact that most social networks of SME entrepreneurs are family, friends and relatives, which most times can only be used for expressive purposes and not for instrumental gain. The practical implications of the results are also discussed