Academy of Entrepreneurship Journal (Print ISSN: 1087-9595; Online ISSN: 1528-2686)

Abstract

Demystifying the Nexus Between Social Capital and Entrepreneurial Success in South Africa

Author(s): Obey Dzomonda,Reginald Masocha

The  purpose  of  this  study  was to demystify  the  nexus  between  social  capital  and entrepreneurial success in South Africa. The study was quantitative and data was collected using aself-administered questionnaire. A sample of 196 entrepreneurs was convenientlysought. Data was  analysed  using  thestructural  equation  modelthrough  the  SmartPLS  3  software. The  first hypothesis   which   stipulated   that   there   is   a   significant   positive   relationship   between Empowerment  and Political  Action (EPA)  and Entrepreneurial  Success  (ES)  was  supported  as posited  by  significant path findings (β=0.637; t=8.123;  p<0.0001).  Secondly,  hypothesis  two findings  (β=0.203;  t=2.585;  p=0.010)  also  alluded  to  a  significant  path  between Social Cohesion and Inclusion  (SCI)  and Entrepreneurial  Success (ES)  among  entrepreneurs  in  South Africa.  Finally,  the  third  hypothesis  which  stated  there  is  a  significantpositive  relationship between Groups and Networks (GN) and Entrepreneurial Success (ES) was not supported based on weaker path findings (β=0.083; t=1.071; p=0.285).