LAUSR

This study examines the role of social capital in improving the B40 household income, where social innovation and social entrepreneurship act as mediators. Past studies provided a limited explanation of the role of social innovation and social entrepreneurship in describing the relationship between social capital and income. The study involved 304 respondents selected through purposive sampling. Using a Partial Least Square Structural Equation Model, the findings showed that social capital factors in all dimensions influence social innovation and social entrepreneurship. Social networks and social responsibility are essential social capitals for increasing social innovation and social entrepreneurship. The findings imply that social entrepreneurship should be empowered to effectively strengthen its role in boosting the B40 household income. Social capital development with an emphasis on social innovation and social entrepreneurship is expected to create an innovative society that can reduce income inequality and enhance well-being of the B40 households.