Social capital in a digital age: greater access to networks for female entrepreneurs

Abstract

Orientation – It has been suggested that female entrepreneurs are critical to economic growth, yet fail to develop strategic networks to gain access to embedded social capital resources required to provide a competitive edge in business. The difference between male and female social networks is key issue affecting financial resources and ultimately firm performance Motivation for the study – The digital era has created uncertainty by transforming and disrupting the entrepreneurial process, digital technologies allow entrepreneurs to pursue entrepreneurial activities in new ways. This study examines the use of digital technologies to gain social capital resources. Research purpose – The purpose of this study is to examine social capital in the digital age. The manifestation of social capital on online platforms and technologies by female entrepreneurs and access gained to embedded resources necessary to enhance firm performance of women owned firms. Research design, approach and method – Insight was derived through a quantitative study. A survey was administered to owners and founders, a total of 93 female entrepreneurs or female entrepreneurs partnering with males operating in various industries in South Africa participated. Main findings – Aspects examined include bonding and bridging social capital; offline networks; and digital platforms and technologies. The results indicate that female entrepreneurs are using digital platforms and technologies to pursue entrepreneurial activities, needed to promote firm growth. Practical/managerial implications – There is an increasing use of social media, digital platforms and digital technologies. The traditional way of pursuing entrepreneurial opportunities will fundamentally change and will require entrepreneurs find new ways of doing business in the digital era therefore removing some barrier experienced by female entrepreneurs. Contribution/value-add – In exploring social capital and issues experienced by female entrepreneurs in a developing country, this study explores the impact of digitalisation to social capital theory and female entrepreneurship adding to both literature.