How Does Human, Financial and Social Capital Affect a Firm’s Performance? Evidence from Handloom Enterprises in Assam

Abstract

This article examines how human, financial and social capital affects the performance of handloom enterprises in the Indian state of Assam. The study employs a random sample of 340 handloom micro-entrepreneurs from Assam’s three districts. Tobit model and the hierarchical regression have investigated the link between a firm’s performance and human, financial and social capital. The results reveal that human, financial and social capital positively affects the performance of handloom firms. Aside from these, the study found that firm performance is positively influenced by innovation and the use of technology. Finally, some policy implications are provided based on the findings.