Trust as Social Capital: Enhancing Small Business Performance in South Africa’s Enterprise and Supplier Development Programmes

Author(s):

 Jabulile Motlhako¹ Jabulile Msimango-Galawe²

Jabulile.Msimango-Galawe@wits.ac.za
2025-12-03 14:47:11

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Abstract

This study investigates the role of trust as social capital in the performance of small enterprises within South Africa’s Enterprise and Supplier Development (ESD) programmes. While ESD programmes are widely implemented to enhance small business competitiveness, limited empirical attention has been paid to the relational dimensions of social capital that underpin effective supplier–buyer collaboration. Addressing this gap, the study examines how trust enhances relational quality, facilitates access to strategic resources, and contributes to the sustainable growth of small enterprises within ESD ecosystems. A quantitative, cross sectional research design was adopted, utilising survey data from 72 small enterprises participating in ESD programmes across multiple sectors in South Africa. Regression analysis was conducted to examine the in f luence of trust on enterprise performance. The results revealed that trust had a significant positive influence on performance (β = 0.392,R2 = 0.154). The study contributes to entrepreneurship and social capital scholarship by conceptualising trust as a pivotal social resource and advancing understanding of informal governance mechanisms that shape enterprise success in African contexts. Practically, the findings under score the importance of institutionalising trust through ethical leadership, transparency, and accountability within ESD frameworks. Strategically embedding trust in ESD programmes can strengthen supplier–buyer partnerships, enhance programme impact, and contribute to inclusive enterprise development and sustain able economic growth in South Africa. The study recommends institutionalising trust-building mechanisms in ESD design to strengthen supplier–buyer partnerships and improve programme impact.

Keywords
Social Capital, Trust, Enterprise and Supplier Development, Small Enterprise Performance, Intangible asset, Supplier-Buyer Relationships

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