The role of social capital in developing sustainable micro-entrepreneurship among rural women in India: a theoretical framework

Jogeswar Mahato, Manish Kumar Jha, Saurabh Verma


Objective of the Study: To analyze the role of social capital in developing sustainable micro-entrepreneurship among rural women. In addition, it also interprets the conceptual understanding of social capital, micro-entrepreneurship development, and the determinants that promote micro-entrepreneurship have been discussed. 

Relevance/Originality: There are numerous ways to achieve entrepreneurship, but social capital is one way to develop entrepreneurship. Social capital consists of mutual trust, understanding, reciprocity, social relation, collective actions, etc., among its group members.

Methodology/Approach: This article presents a conceptual, theoretical framework by scrutinizing the archive literature to comprehend social capital's role in developing sustainable micro-entrepreneurship. Three forms of social capital, namely Self Help Group, SHG federation, and NGO, have been considered for this study. These social capitals then correlate with each of the indicators of micro-entrepreneurship identified and examined the role of social capital in developing sustainable micro-entrepreneurship among rural women.

Main Results: Three forms of social capital such as SHG, SHG federation, and NGO that have been taken for this study, contributes to sustainable micro-entrepreneurship in various ways, i.e. SHG and SHG federation help in achieving social factors and financial inclusion, whereas NGOs provide entrepreneurial training and suitable business network for the women-owned enterprises. 

Theoretical/Methodological contributions: This study contributes to developing a theoretical framework by analyzing the pieces of literature that contribute to sustainable micro-entrepreneurship development through social capital. 

Social/management contributions: Social capital promotes sustainable micro-entrepreneurship, which leads to the employment generation, generates regular sources of income, addresses multiple social and economic issues, and promotes a better means of livelihood for rural women.


Micro entrepreneurship; Social capital; Self help group; NGO; Sustainable.

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