Does social capital really determine poverty? Evidence from a Cameroon household survey

Atemnkeng, Johannes Tabi; Vukenkeng, Andrew Wujung

doi:10.1080/20421338.2015.1128038

Cited by 13 publications

(17 citation statements)

References 40 publications

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“…This finding lends support to hypothesis (H3) of this study. Scholars such as Atemnkeng (2009); Karlan (2007); Cassar et al (2007); Besley and Coate (1995); Ghatak and Guinnane (1999); and Stiglitz (1990)…”

Section: Discussion Of Findingsmentioning

confidence: 99%

“…More so, Edgcomb and Barton (1998) also state that in the process of providing financial services, especially loans to small women entrepreneurs, financial institutions are faced with the problems of adverse selection and moral hazard resulting from availability of incomplete information in the financial market. Financial institutions resort to demanding collateral that guarantee the services it providessuchasloansthatissoughtbythepoorinordertoensurefuturerecovery.Thus,forthepoor who lack physical collateral, they use their social capital inform of interpersonal and generalized trusts and social sanction to substitute and guarantee the loans (Atemnkeng, 2009). Yoosuf and Premaratne (2017)furtherargue thatlinkagessuchasnetworks thatpromote socialcohesionamong micro-entrepreneurs can lead to development of business and social linkages that can economically empower communities in post-conflict areas, especially in developing countries.…”

Section: Microfinance Accessibility and Survival Of Women Msmes: The Role Of Social Cohesionmentioning

confidence: 99%

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Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

Bongomin

Woldie

Wakibi

2020

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PurposeGlobally, women have been recognized as key contributors toward livelihood and poverty eradication, especially in developing countries in sub-Saharan Africa. This is due to their great involvement and participation in micro small and medium enterprises (MSMEs) that create employment and ultimately economic growth and development. Thus, the main purpose of this study is to establish the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in sub-Saharan Africa, especially in Northern Uganda where physical collateral were destroyed by war.Design/methodology/approachThe data for this study were collected using a pre-tested semi-structured questionnaire from 395 women MSMEs who are clients of microfinance institutions in post-war communities in Northern Uganda, which suffered from the 20 years' Lord Resistance Army (LRA) insurgency. The Analysis of Moment Structures (AMOS) software was used to analyze the data and the measurement and structural equation models were constructed to test for the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities.FindingsThe results revealed that social cohesion significantly and positively mediate the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in Northern Uganda. The results suggest that the presence of social cohesion as a social collateral promotes microfinance accessibility by 14.6% to boost survival of women MSMEs in post-war communities where physical collateral were destroyed by war amidst lack of property rights among women. Similarly, the results indicated that social cohesion has a significant influence on survival of women MSMEs in post-war communities in Northern Uganda. Moreover, when combined together, the effect of microfinance accessibility and social cohesion exhibit greater contribution towards survival of women MSMEs in post-war communities in Northern Uganda. Indeed, social cohesion provides the social safety net (social protection) through which women can access business loans from microfinance institutions for survival and growth of their businesses.Research limitations/implicationsThis study concentrated mainly on women MSMEs located in post-war communities in developing countries in sub-Saharan Africa with a specific focus on Northern Uganda. Women MSMEs located in other regions in Uganda were not sampled in this study. Besides, the study focused only on the microfinance industry as a major source of business finance. It ignored the other financial institutions like commercial banks that equally provide access to financial services to micro-entrepreneurs.Practical implicationsThe governments in developing countries, especially in sub-Saharan Africa where there have been wars should waive-off the registration and licensing fees for grass root associations because such social organizations may act as social protection tools through which women can borrow from financial institutions like the microfinance institutions. The social groups can provide social collateral to women to replace physical collateral required by microfinance institutions in lending. Similarly, the governments, development agencies, and advocates of post-war reconstruction programs in developing countries where there have been wars, especially in sub-Saharan Africa should initiate the provision of group business loans through the existing social women associations. This may offer social protection in terms of social collateral in the absence of physical collateral required by the microfinance institutions in lending. This may be achieved through partnership with the existing microfinance institutions operating in rural areas in post-war communities in developing countries. Additionally, advocates of post-war recovery programs should work with the existing microfinance institutions to design financial products that suit the economic conditions and situations of the women MSMEs in post-war communities. The financial products should meet the business needs of the women MSMEs taking into consideration their ability to fulfil the terms and conditions of use.Originality/valueThis study revisits the role of microfinance accessibility in stimulating survival of women MSMEs, especially in post-war communities as an engine of economic growth in the presence of social cohesion. It reveals the significant role of social cohesion as a social protection tool and safety net, which contributes to economic outcomes in the absence of physical collateral and property rights among women MSMEs borrowers, especially in post-war communities.

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Section: Discussion Of Findingsmentioning

confidence: 99%

Section: Microfinance Accessibility and Survival Of Women Msmes: The Role Of Social Cohesionmentioning

confidence: 99%

Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

Bongomin

Woldie

Wakibi

2020

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“…More recent studies confirmed the positive role of social capital on household welfare through its impact on income, expenditure and consumption (Idris & Agbim, 2015, Olawuyi & Olawuyi, 2015. The typical modelling approach starts with a set of structural equations that stipulates the conventional household's economic behaviour under constrained utility maximization, which is then used to evaluate the impact of social capital on household welfare (Narayan & Pritchett, 1999, Atemnkeng, 2009. This model, when adjusted to incorporate social capital and the economic setting of household decision-making, in terms of poverty reduction and sustainable human development, operates to establish the social capital-poverty nexus, the context that gives social capital its importance in explaining differences in development outcomes (Onyemenam, 2017).…”

Section: Social Capital and Household Welfarementioning

confidence: 99%

Social Capital and Household Welfare Among Anioma People in Delta State, Nigeria.

Onyemenam

2019

ASSRJ

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Most studies on social capital and household welfare have focused largely on econometric analyses of formal networks while informal, less institutionalised but durable networks are either ignored or concepts like 'trust', and 'age groups' are reduced to equations in econometric models that leaves out the quintessential social aspects. This non-econometric study focused on informal networks and social relations, using ethnographic and cross-sectional survey data from 13 homogenous Anioma communities in Delta State, Nigeria. Descriptive and inferential statistics were used to analyse the primary data while content analysis was used for the ethnographic data. Among others, the study found that access to social capital was not gender sensitive, it was not significantly related to welfare but it is positively correlated with household per capita income. Finally, while there was a large stock of social capital, household welfare remained low, due to the high level of poverty and the influence of the communal value that places an obligation on those who have more than others to help, such that they become 'drawn back', by their stock of social capital, which becomes an encumbrance of a kind. Accordingly, government should invest in informal social capital and incorporate it in its development policies and implementation plans, so as to help remove the 'draw backs,' foster healthy relations between community-level organisations and kinship-based networks and involve both types of social capital in its pro-poor programmes.

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“…The fundamental reason for the increasing importance of 'social capital' in explaining differences in economic development outcomes between similarly endowed economies lies in the relationship between social capital, poverty and development. As noted by Baiyegunhi (2013), Atemnkeng, (2009) and Grootaert (1999b), the rationale for the empirical investigation stems from the view that economic differences at the individual, household and national levels can no longer be conveniently justified by the differences in the traditional factor inputs. As a result, social capital is important in understanding the differences.…”

Section: Recent Empirical and Theoretical Approaches On Social Capitamentioning

confidence: 99%

“…It is from this simple conceptualisation that a model is for malised, often, as a set of structural equations that make up the conventional model of a household's economic behaviour under constrained utility maximization. This also occurs in the context of those exogenous characteristics (endogenous is often excluded) and economic environment within which households make their decision (Narayan & Pritchett, 1999, Grootaert, 1999a, Atemnkeng, 2009). This conventional model is then adjusted to reflect the role of social capital and the economic setting of household decision making, in terms of poverty reduction and sustainable human and economic development covering all aspects and levels of welfare, especially the quality of life or well-being (UN, 2016, UNDP, 2016, Yusuf, 2008, Grootaert, 2002, World Bank, 2002, Baiyegunhi, 2013, Idris & Agbim, 2015.…”

Section: Recent Empirical and Theoretical Approaches On Social Capitamentioning

confidence: 99%

Social Capital and Household Welfare: A Review of Contemporary Empirical Literature

Onyemenam¹

2019

theijhss

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Does social capital really determine poverty? Evidence from a Cameroon household survey

Cited by 13 publications

References 40 publications

Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

Microfinance accessibility, social cohesion and survival of women MSMEs in post-war communities in sub-Saharan Africa: Lessons from Northern Uganda

Social Capital and Household Welfare Among Anioma People in Delta State, Nigeria.

Social Capital and Household Welfare: A Review of Contemporary Empirical Literature

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