EFFECTS OF SOCIAL NETWORKS ON ENTREPRENEURIAL RESILIENCE OF SMES IN NAIROBI, KENYA: AN EMPIRICAL REVIEW
Abstract
Purpose of the study: This paper reviews the empirical literature on how social networks shape entrepreneurial resilience among Small and Medium-Sized Enterprises (SMEs) in Nairobi, Kenya, drawing on studies published between 2016 and 2026.
Problem statement: SMEs anchor a large share of Kenya's employment and output, yet a substantial proportion collapse within their first five years, worn down by financial instability, regulatory complexity and volatile markets. Entrepreneurs lean on their social ties to absorb these shocks, but the literature explaining how this happens is scattered across disconnected strands.
Method/methodology: The study followed a qualitative systematic literature review design guided by the PRISMA framework (Moher et al., 2009). Fifty-four peer-reviewed studies survived a staged screening process across Scopus, Web of Science, JSTOR, Emerald Insight and Google Scholar, and were synthesized thematically.
Results of the study: Social networks turned out to be multidimensional, spanning professional and business ties, family and close social relationships, institutional and ecosystem links, and digital platforms. These operate through four mechanisms, resource mobilization, knowledge sharing, psychological support and collaborative problem-solving, that reinforce one another rather than working in isolation. Social Capital Theory was the dominant lens (38.9% of studies), ahead of Network Theory (27.8%), Entrepreneurial Ecosystem Theory (20.4%) and the Resource-Based View (13.0%). Four gaps stood out: resilience is rarely treated as its own outcome variable, African settings remain under-studied, network dimensions are examined piecemeal, and digital networking dynamics are poorly integrated into existing theory.
Conclusion and policy recommendation: Social networks function as survival infrastructure for Nairobi's SMEs rather than a peripheral advantage. Deliberate investment in both physical and digital networking ecosystems, by entrepreneurs, institutions and policymakers alike, would materially strengthen the sector's capacity to withstand shocks.
Keywords: Social networks, entrepreneurial resilience, SMEs, empirical literature review, social capital, Nairobi
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