The relational capital of micro-enterprises run by women: the start-up phase  

Purpose: The purpose of this paper is to investigate how relational capital contributes to the start-up phase of women-owned micro-enterprises. We focus on micro-enterprises because they are key drivers of economic growth, and women micro-entrepreneurs are key developers of these businesses. Design/methodology/approach: To gather data for the study, a qualitative research methodology was adopted using a case study approach based on examining real life events (Yin, 2009). We present nine cases of micro-enterprises run by women, focusing on the management of the start-up phase in order to investigate the nature and role of the relationships activated by the micro-entrepreneurs. Findings: The paper develops the CAOS model of micro-entrepreneurship, examining the personal characteristics of the female micro-entrepreneur (C); the environment in which the micro-enterprise operates (A); organisational and managerial aspects (O); and the motivations for starting a new business (S). Using this model the research links these factors and classifies different types of connections, identifying the range of existing relationships. We find a predominant use of networks characterised by informal relationships, which work to support the need to reconcile work and family and to involve relatives and friends in the network. The finding emphasises the lack of formal strategy in female run micro-enterprises. Originality/value: Given that female entrepreneurship is regarded as central to the development and welfare of economies, knowledge and understanding of how women micro-entrepreneurs manage the start-up of their businesses contributes to improving the effectiveness of policies aimed at promoting the participation of female micro-entrepreneurs in the economy