This chapter examines the social networks critical for small, medium, and micro enterprises (SMMEs) in Kenya’s informal economy, particularly Jua Kali artisans, enabling resource access, innovation, and sustainable growth. Networks evolve from trust-based dyadic ties to complex, market-oriented structures, progressing through stages of social and economic integration and stratified resource sharing. Driven by compatibility, relational trust, and spatial proximity, these networks foster collaboration with family, suppliers, and peers. Emotional trust dominates early stages, supporting startups, while cognitive trust emerges as networks expand, enhancing strategic alliances. Interfirm linkages, motivated by reciprocity, efficiency, and legitimacy, boost technical efficiency and knowledge exchange. Network intensity and diversity significantly enhance SMME performance, facilitating opportunity identification, market access, and resilience, though women entrepreneurs face unique barriers. As networks shift from strong, personal ties to weaker, resource-rich connections, they drive innovation but risk over-reliance, straining resources: economic volatility and trust fragility further challenge network stability. By fostering inclusive, robust networks, stakeholders can strengthen SMMEs’ role as engines of economic growth, job creation and poverty alleviation in Kenya’s informal economy, addressing barriers to cultivate a vibrant entrepreneurial ecosystem. The chapter provides a theoretical account of microenterprises and their social networks that facilitate sustainable growth.

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Sustainable Microenterprises and Networks

  • Reuben Mulwa Kivuva,
  • R. Sooryamoorthy

摘要

This chapter examines the social networks critical for small, medium, and micro enterprises (SMMEs) in Kenya’s informal economy, particularly Jua Kali artisans, enabling resource access, innovation, and sustainable growth. Networks evolve from trust-based dyadic ties to complex, market-oriented structures, progressing through stages of social and economic integration and stratified resource sharing. Driven by compatibility, relational trust, and spatial proximity, these networks foster collaboration with family, suppliers, and peers. Emotional trust dominates early stages, supporting startups, while cognitive trust emerges as networks expand, enhancing strategic alliances. Interfirm linkages, motivated by reciprocity, efficiency, and legitimacy, boost technical efficiency and knowledge exchange. Network intensity and diversity significantly enhance SMME performance, facilitating opportunity identification, market access, and resilience, though women entrepreneurs face unique barriers. As networks shift from strong, personal ties to weaker, resource-rich connections, they drive innovation but risk over-reliance, straining resources: economic volatility and trust fragility further challenge network stability. By fostering inclusive, robust networks, stakeholders can strengthen SMMEs’ role as engines of economic growth, job creation and poverty alleviation in Kenya’s informal economy, addressing barriers to cultivate a vibrant entrepreneurial ecosystem. The chapter provides a theoretical account of microenterprises and their social networks that facilitate sustainable growth.