  How does an entrepreneur's social capital improve small informal business
productivity? Although studies have investigated this relationship, we still
know little about the underlying theoretical mechanisms driving these findings.
Using a unique Zambian Business Survey of 1,971 entrepreneurs administered by
the World Bank, we find an entrepreneur's social capital facilitates small
business productivity through the mediating channels of firm financing and
customer relationships. Our findings identify specific mechanisms that channel
social capital toward an informal business' productivity, which prior studies
have overlooked.

General Economics;Economics