Role of financial and social capital in rural women micro-enterprises: assessing entrepreneurial orientation as a performance catalyst

Sagar Kumar Behera, Rajeev Kumar Panda and Shubham Senapati

Journal of Enterprising Communities: People and Places in the Global Economy, 2025, vol. 20, issue 1, 59-93

Abstract: PurposeWomen-owned micro-enterprises serve as the backbone of rural communities, significantly contributing to economic development and sustainable growth. However, these enterprises frequently encounter substantial challenges, particularly in accessing financial resources and establishing robust social networks. This study aims to explore the impact of financial capital (FC) and social capital (SC) on the performance of rural women’s micro-enterprises, emphasising the mediating role of entrepreneurial orientations (EO).Design/methodology/approachThe survey data was collected from 287 women-owned micro-enterprises using purposive sampling techniques. Further, a quantitative approach entailing the partial least squares structural equation modelling technique was adopted to test the hypothesised causal relationships between entrepreneurial factors.FindingsThe findings show that FC has a moderately positive effect on EO, though it is weaker compared to SC. Furthermore, EO substantially directly impacts FP and highlights its crucial role in enhancing FP. While the analysis did not establish a significant direct relationship between SC and FP, EO fully mediates the pathway by linking SC to FP.Research limitations/implicationsThe study’s findings offer critical insights for policymakers and practitioners designing support programmes for rural women entrepreneurs. Further, interventions should strengthen social networks and cultivate an entrepreneurial mindset to facilitate growth and sustainability.Originality/valueThis study contributes to a complex understanding of the factors driving success in rural women-led micro-enterprises. It addresses their unique challenges and opportunities and offers strategies to support this vital yet often overlooked segment of the economy.

Keywords: Financial capital; Social capital; Entrepreneurial orientations; Firm performance; Women entrepreneurs (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jecpps:jec-01-2025-0010

DOI: 10.1108/JEC-01-2025-0010

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