How Does Entrepreneurial Networking Improve the Sustainability of Women-led Micro Enterprises?

Abstract

Women-led microenterprises contribute to economic development through job creation, extend resources to rural communities, reduce poverty, and improve family wellbeing. However, little is known about how women entrepreneurs in contexts stricken by institutional, cultural, and religious constraints grow microenterprises. Therefore, the purpose of this study is to examine how women entrepreneurs in developing countries improve the sustainability of microenterprises. We ground our study in social capital theory to test the partial mediating role of entrepreneurial learning behavior and self-organization in the relationship between entrepreneurial networking and sustainability of microenterprises. Based on a sample of 581 women-led microenterprises in Uganda, we test our model using ordinary partial least squares regression through SmartPLS version 3.3.3. The results support our theorizing that entrepreneurial networking has a positive and significant effect on sustainability of microenterprise performance and that the relationship is partially mediated by entrepreneurial learning behavior and self-organization. Our findings provide evidence that financial and nonfinancial resources available through women entrepreneur’s networks improve the sustainability of microenterprises which in turn enhance family wellbeing and economic development. We extend application of social capital theory among women-led microenterprises and offer insight to policymakers when making decisions directed towards growth and survival of microenterprises.