Impact of family capital and social capital on scaling up of an enterprise
A strong family support either in form of finance, manpower and human in achieving the entrepreneurial goal is considered as family capital (Sharma 2014) whereas individual’s social contacts contributing towards entrepreneurial goals is considered as social capital (Burt 1992).
3.1 Measurement of family capital
In order to determine the extent of family capital, the constructs was measured by framing statements on three dimensions of family capital: Financial support, Physical support and mental support with the help of experts committee. Factor analysis was done to reveal the relationship of statements with the dimensions. The final selected items were used to measure the construct of family capital on three point continuum i.e. always, sometimes and never. The score of 3, 2 and 1 was assigned respectively to this continuum for each item response. The total score on this scale was pooled and the respondents were categorized into three categories i.e. High, medium and low according to their family capital score by using range method. In order to see the impact of family capital on scaling up of enterprise following hypothesis were framed before conducting the study:
H0: Family capital has no association with up scaling of enterprise
HI: Family capital is associated with up scaling of enterprise
For testing these hypotheses the total responses obtained from the respondents were arranged into R x C (3 × 3) contingency table along the two variables i.e. Level of scaled up enterprise and family capital. As the selected sample size was small i.e. n = 44 (less than 90) Fisher’s exact test was used to the see the association between these two variables.
Table 1
different dimensions on Family capital
| Statements of different dimensions on family capital | Always | Sometimes | Never |
1. | financial i. Whenever I need money my family supports me ii. I often invest from my own pocket iii. I burrow it from outside | | | |
2. | Physical iv. My family members provide the physical support when I need manpower v. In case of need I have to hire manpower from outside |
3. | Mental vi. When I am having stress of my work I talk it to my family members vii. In case of stress I don’t talk to any body viii. I only share it with my friends ix. I feel more secure with my family |
3.2 Measurement of Social capital
It referred to the association or relation of individuals within the society (social network) and the norms of reciprocity and trust worthiness that arise from the social resources which respondents need to attaining their livelihood objectives. These resources were developed through local networks and togetherness of individuals in the society.
In the present investigation social capital of the respondents was measured by using the method used by Onyx and Bullen (1997) in their study in which they framed items for measuring social capital on Likert-type response scale. In the present investigation also three dimensions of social capital as discussed by Stone (2001) in his theory on Social Capital were taken into consideration while framing the items for social capital. After pretesting, item analysis, reliability and validity only 10 items were included in the final scale and the responses were taken on five point Likert scale ranging from strongly agrees to strongly disagree. The scores of 5,4,3,2 and 1 were assigned to strongly agree, agree, undecided, disagree and strongly disagree respectively.
Table 2
different dimensions on social capital
Sr. no. | Statements of different dimensions on social capital | Degree of agreement Max score = 50 min = 10 |
1. | Trust i. I have trust on my friends/ peers competencies. ii. I am having full faith in my friend circle that they will keep my secrets with them. iii. Whenever I am not able to solve my problems I ask my members of social circle to help me out. iv. I usually get help from others when I ask for that. | SA | A | UD | DA | SDA |
2. | Social Network v. In case of need I have full access of tools and equipments of others vi. I am having access of my friends’ personal network. vii. I am having access of knowledge and experience of others. | | | | | |
3. | Reciprocity viii. I always help others too whenever they need my help. ix. Even in case of conflicting arguments related to my enterprise I enjoy an equal opportunity to express my views in my social circle. x. I enjoy the same respect, freedom and access what I give to the people around me. | | | | | |
Thus the total score obtained on this scale was pooled and the respondents were categorized into three categories on social capital i.e. High, Medium and Low by following range method of categorization. In order to see the impact of social capital on scaling up of enterprise following hypothesis were framed before conducting the study:
H0: Social capital has no association with up scaling of enterprise
HI: Social capital is associated with up scaling of enterprise
For testing these hypotheses the total responses obtained from the respondents were arranged into R x C (3 × 3) contingency table along the two variables i.e. Level of scaled up enterprise and Social capital. As the selected sample size was small i.e. n = 44 (less than 90) Fisher’s exact test was used to the see the association between these two variables.