Networks and credit characteristics of small scale women business operators in the Mfanstiman district of Ghana

Introduction What determine or create entrepreneurship have long been researched into globally (Sri, Shariff & Saud, 2011; Rauch & Watson, 2005). In recent times, it is not what determines entrepreneurship that matter but more importantly what makes a successful entrepreneur. In this regard sustainable entrepreneurship demands that entrepreneurs use networking as a means of building social capital. Hatala (2007) has recognized the need and the ability to access social capital as an important component to upward mobility, both personally and professionally. Whether it is for the purpose of finding a job, starting a business or seeking a promotion, accessing network resources represents the needed advantage to achieving success through networking. Networking may be conducted in different contexts as in job, social life, religious, political set ups as well as many in life situations. In enterprise, networking is studied excessively for the role of supporting the entrepreneurial success (Lechner, Dowling & Welpe, 2005). The authors argue that maintaining networking is strongly needed to develop enterprises. Besides learning, the entrepreneurs should also be able to open or have internal networking within their enterprises or external networking with other parties. Networking with others is carried out because the entrepreneurs mostly depend on the information, raw materials, technology or knowledge, in order to make their enterprises continuously develop and be acceptable to societies. Numerous research done found that networking provided many benefits and encourages success of an enterprise. Hite & Hesterly (2001) in their research found that networking increases profit from investment and access to growth, particularly for new founded companies and made dynamic relationship to these companies. Hatala 92007) argue that it is not just networking per se that matters but the individual’s position within the network. The implication is that an individual’s social position within a network may help to determine the utility of the network itself. What happens when a person’s position within a network is not favourable? It is inferred from the latter that is a person’s position in a network is not strong; even though the network will be there it cannot be used effectively and efficiently to achieve desired results. The utilization of network resources thus will affect the start-up of growth and latter stages of enterprises. Network position describes the pattern of interaction between firms clustered in a particular community, district or region. The degree to which an individual actor is connected to others in a network is called centrality (Borgatti et al., 2002). Centrality is used to obtain the positional features of an individual firm within networks. An individual firm’s centrality captures the extent of its access to knowledge. The importance of networks in society cannot be overemphasized as a result of its role in developing the private sector in contributing to gross domestic product (GDP), employment creation, and raising income levels through its spill-over effects. An entrepreneur’s network position reveals its ability to access external information and knowledge. This knowledge is transformed into production of new products and improving upon existing ones. By occupying a central position in the network, a firm is likely to access desired strategic resources including finance, knowledge and skills. Such resources will again fuel the enterprise’s production activities by