Kabore T Antoine, Iradukunda Sengesho Benigne, Nizeyimana Jean Baptiste
This study examines the comparative dynamics of small business resilience and the role of social capital in Burkina Faso and Italy, two countries with vastly different economic contexts but shared reliance on small enterprises as backbone of their economies. Despite their divergent development trajectories, both nations face the fundamental challenge of sustaining small businesses through economic shocks, institutional weaknesses, and market uncertainties. The research employs a comparative case study methodology, drawing on policy documents, empirical studies, enterprise surveys, and scholarly analyses spanning 2020-2026. Italy's small business landscape is characterized by the iconic "distretti industriali" (industrial districts)—geographic concentrations of small and medium enterprises, often family-owned, operating in specialized sectors such as textiles, machinery, furniture, and food processing. These districts are sustained by dense networks of social capital built on family ties, local identity, and long-term business relationships. Research documents how social capital within industrial districts facilitates knowledge spillovers, trust-based transactions, collective innovation, and flexible responses to market changes (Becattini et al., 2020). The Emilia-Romagna model, in particular, has been studied as a paradigm of small business resilience, with cooperative networks providing shared services, credit guarantees, and export consortia. However, the 2008 financial crisis and subsequent economic stagnation exposed vulnerabilities: many districts struggled with global competition, succession challenges in family firms, and erosion of traditional social capital (De Marchi & Grandinetti, 2021). The COVID-19 pandemic further tested resilience, with some districts adapting through digitalization and supply chain reconfiguration while others declined. The 2024 budget's support for small business networks and consortia reflects…
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