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Influence of Social Knowledge of Business Owners and Managers on The Profitability of Small-Scale Enterprises

Egor Ese Omolewa, Justice C Ngwama, Alexander Ehimare Omankhanlen

Abstract

This research study delved into the pivotal role of social knowledge among business owners and managers about the profitability of selected small-scale enterprises in Ogun State, Nigeria. While there exists a burgeoning body of literature examining the impact of social capital on the sustainability and growth of small-scale enterprises within Nigeria, there remain significant gaps in research that warrant further investigation. The study aimed to illuminate how proprietors of small-scale enterprises can effectively harness, leverage, and integrate various aspects of social knowledge. By doing so, they can foster customer loyalty and trust, open new market opportunities, retain existing clientele, boost profitability, alleviate poverty, contribute to economic development, achieve the Sustainable Development Goals (SDGs), and ensure the long-term viability of their businesses. To achieve these objectives, a qualitative research methodology was employed, allowing for an in-depth exploration of social capital and its constituent variables. The study utilized descriptive analysis alongside Partial Least Squares Structural Equation Modeling (PLS- SEM) to examine the data comprehensively. The analytical findings revealed a significant positive correlation between social knowledge and the profitability of small-scale enterprises. As a result, small-scale business owners and managers in Ogun State need to adopt and implement targeted strategies that emphasise the development and nurturing of social knowledge, trust, networking opportunities, and shared values. By focusing on these areas, they can effectively leverage their social capital to enhance the sustainability and profitability of their enterprises, ultimately contributing to broader economic growth and community well- being.

Keywords

Business OwnersManagers ProfitabilitySmall-Scale EnterprisesSocial

References

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