Social capital in the form of entrepreneurial networks is found to be a det
erminant of Ghanaian manufacturing enterprise performance. Entrepreneurs wi
th larger, more diverse sets of contacts have more productive enterprises.
Entrepreneurs also benefit from the networking activity of others. There is
some evidence that the networks facilitate flows of knowledge between ente
rprises. A simple theoretical model indicates that where such flows take pl
ace, there is a potential for sustained endogenous economic growth. However
, in Ghana, the flows are not sufficiently complementary to the enterprises
' own knowledge for this potential to be realized.