Reciprocal relationship of social capital and microfinance activities in Nyanga, Zimbabwe

Fostering micro-entrepreneurs’ structural and relational social capital through microfinance

“…In contrast to studies that have examined social capital as a unidimensional concept (e.g., Feigenberg et al 2014;Mafukata, Dhlandhlara, and Kancheya 2017), Nahapiet and Ghoshal (1998) advance a multidimensional conceptualization of social capital: cognitive, structural, and relational. Crucially, such a multi-dimensional conception recognizes and distinguishes social capital in its multiple forms (Gedajlovic et al 2013).…”

“…Although social capital has been conceptualized in a number of ways, the essential idea is that it symbolizes the value embedded in the social relationships of individuals or social units (David and Sanyal 2017;Gedajlovic et al 2013;Gironde 2007;Jack 2005;Jonsson and Lindbergh 2013;Mafukata, Dhlandhlara, and Kancheya 2017;Sanyal 2009;Tubadji, Kourtit, and Nijkamp 2014); that is, 'the aggregate of the actual or potential resources which are linked to possession of a durable network of more or less institutionalized relationships of mutual acquaintance or recognition' (Bourdieu 1986, 248).…”

“…Second, we provide evidence of how group-based microfinance can enhance borrowers' social capital. In contrast to previous studies that have examined social capital as a unidimensional concept (e.g., Feigenberg et al 2014;Mafukata, Dhlandhlara, and Kancheya 2017), we use a multidimensional conception of social capital to illustrate how group-based microfinance facilitates the expansion of borrowers' social networks and enhances the quality of ties between them. Specifically, we argue that through frequent group/center meetings and interactions, an MFI may increase levels of relational and structural social capital of its borrowers.…”