Abstract
In this paper we examine the determinants of self-employment success
for microcredit borrowers. Theories of social capital and neighbourhood
effects are integrated in an attempt to account for earnings differentials
among a unique sample of microfinance borrowers. We posit that social
capital - social relations that facilitate individual action - is
essential for microentrepreneurial success. Based on a survey and
data collected by the authors, it is demonstrated that social capital
is a positive determinant of self-employment earnings. The role that
neighbourhoods play in fostering social capital and improving microentrepreneurial
performance are also highlighted. JEL classification: J23, O17, Z13
Users
Please
log in to take part in the discussion (add own reviews or comments).