The impact of social capital on family business sustainability in Tanzania

Abstract

The main objective of this study was to analyze social capital networking in Tanzanian context. The study dwelt on analysing the association between key elements of social networks and the family business sustainability. This was a quantitative study which employed descriptive and inferential statistics. The study population was 320 small or family businesses operated for more than four years. A correlation analysis was used to find out the factors of social capital that have a positive correlation with family business sustainability. The study revealed that relations and connections are the social capital factors that emerged as significant factors with positive impact on family business sustainability. The study finding indicates a positive relationship between networks and business sustainability. The study recommends that there should be a culture of nurturing the youth to take over the role of managing the business. This should be in line with family members to establish short and long-term plans for the future of the business. Moreover, the study recommends that in order to build the family members’ confidence and loyalty to the family businesses, there should be a system of compensation in which those who devote much be remunerated proportionally.