Sulaiman Adeodu Adebayo, Zakeri Abu (PhD), Ismaila Yusuf


The world economy has shifted from production based economy to knowledge based economy. The business environment has become volatile with the advent of globalization, increased competition, consumers changing tastes, information and communication revolution. Organization must rely on networking with all stakeholders such as customers, suppliers, employees and others to establish necessary contact with the outside world to ensure that collaborative efforts yield synergetic effects and promote trust necessary for teamwork in the organization. This study examined “effect of social capital on the performance of SMEs in South West Nigeria.” The specific objectives were to determine the effect of social capital on employment generation of SMEs in South West Nigeria. Data were collected using questionnaires administered to three hundred and ninety three (393) using Taro Yamane statistical formula out of which three hundred and two were returned from the samples. Analysis of data was carried out using multiple regression analysis to determine the nature of relationship amongst variables. The result of ANOVA test shows that the ‘F’ value is 20.792 with a significance of ‘P’ value which is 0.000 and less that 0.05, meaning that null hypothesis is rejected and alternative hypothesis is accepted which concluded that there is a significant relationship between Social Capital and employment generation of SMEs in South West Nigeria. In Conclusion, building on Social capital by SMEs Operators will improve employment generation of the firm.


Social capital, Small and Medium Enterprises, Employment and Performance

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