Mediating Role of Social Capital and Firm Value Creation in Relationship Among Microcredit, Networking and MSME’s Performance in Pakistan

Abstract

The purpose of this paper is to investigate the effect of Microfinance Services and Networking relationship on Micro Small and Medium Enterprises Performance with the mediating role of Social capital. This study was a descriptive survey design. The target population was 584,572 MSMEs in the province, and owner-managers of MSMEs were the unit of analysis and were targeted for information because they are likely to be the decision-makers in these businesses and are actively involved in their day to day operations. 356 MSME owner-managers were sampled. Data were obtained through adapted construct and measured from a five-point Likert scale, and interview schedules were used to collect data from the field. Qualitative data analyzed by using Statistical Package for Social Sciences (SPSS). The study found that there was a positive effect on MSME performance by Microcredit and Networking with the mediating effect of Social capital.