The study investigated social capital influence on the financial health of micro and small businesses operated by graduate students in South-Western Nigeria. Four research questions and two hypotheses were answered and tested in the study. Mixed method approach was adopted in the study. Population of the study was all students and entrepreneurship lecturers in Universities in South-Western, Nigeria out of which 309 respondents (300 graduate students and nine lecturers) were sampled for the study using multistage sampling technique. Questionnaire and Interview were used for gathering data. The data gathered were analyzed using descriptive and inferential statistics namely; frequency, percentage, mean, binary logistic regression, chi-square and t-test at 0.05 level of significance. The result of the study revealed that the dimensions of social capital had positive effect on the financial health of the businesses operated by the students and the relationships were significant. It was revealed that the manufacturing and agriculture sector where underexplored by the students while the service sector had the higher proportion of entrepreneurs. The reforming of the curriculum was recommended to capture more of social capital development by the students.