Abstract
Micro-enterprises operating within urban informal settlements constitute the economic lifeblood of marginalized communities in the Global South, yet they face disproportionate exposure to macroeconomic shocks and inflationary pressures. This study investigates the mechanisms through which multidimensional social capital networks—specifically bonding, bridging, and linking capital—influence micro-entrepreneurial resilience during acute economic downturns. Employing a convergent parallel mixed-methods design, the research combines survey data gathered from 342 micro-entrepreneurs operating in densely populated informal enclaves in Metro Manila with 28 in-depth qualitative interviews. Hierarchical regression analysis demonstrates that while bonding social capital significantly preserves basic household and business liquidity during immediate shocks (β = 0.312, p < 0.001), bridging social capital exerts a substantially stronger long-term effect on business model adaptation, revenue recovery, and market diversification (β = 0.428, p < 0.001). Conversely, linking social capital remains largely underdeveloped and exhibits weak, non-significant ties to institutional relief mechanisms (β = 0.084, p = 0.118). Qualitative thematic analysis reveals that localized risk-pooling mechanisms, supplier trade credit arrangements, and collaborative logistics serve as vital buffers, though reliance on bonding networks frequently risks capital erosion via reciprocal obligations. The study concludes that fostering cross-community business ties and institutional trust is imperative to transform survivalist informal entrepreneurship into structurally resilient enterprise ecosystems.
