Microfinancing Influence on Micro-Entrepreneurs Business Growth: Mediating Role of Psychological and Social Capital

This paper is set out to uncover the phenomena of micro-enterprises business growth by hypothesizing microfinancing, social and psychological capital as factors. This research is important due to the fact that the paucity of information on how microfinancing, social and psychological capital relate to micro-enterprises business growth would obscure the ways in which they survive. In Malaysia, microfinance is used as one of the tools to alleviate poverty, as well as to improve the livelihood and standards of living of the poor and those who are financially excluded.  However, almost three decades after the introduction of microfinancing programmes, the performance of microfinancing recipients’ i.e. micro-enterprises in Malaysia is not satisfactory. Besides providing loans to these micro-entrepreneurs, other aspects of facilitation, including the inculcation of the entrepreneur’s intangible resources, need to be addressed. Therefore, this research examines the mediating effect of micro-entrepreneurs’ psychological and social capital on the relationship between microfinance provisions and the business growth of micro-enterprises. The samples are identified from two microfinance providers, i.e., Amanah Ikhtiar Malaysia (AIM) and the National Entrepreneur Group Economic Fund (TEKUN) micro credit financing scheme recipients’ databases. A total of 250 useable survey questionnaires was collected and analysed to test the hypothesised relationship. The data was analysed using Partial Least Square-SEM and the structural model was examined to test the hypotheses. The findings show that micro-entrepreneurs’ psychological and social capital have a significant mediating effects on the relationship between provision of microfinance and the business growth of micro-enterprises in Kelantan. This research offers the practical implication that the effects of micro finance provision on the business growth of micro-enterprises are better exerted through micro-entrepreneurs’ psychological and social capital. This theoretically supports the applicability of the Resource-based View (RBV) theory to explain the mediating effect of psychological and social capital on the relationship between microfinance provisions and business growth. Research paper Keywords: Micro-enterprise, Business growth, Psychological capital, Social capital, Mediation, Microfinance institutions Reference to this paper should be made as follows: Nordin, N., Siti-Nabiha, A.K., & Kamalia, Z. (2019). Microfinancing Influence on Micro-Entrepreneurs Business Growth: Mediating Role of Psychological and Social Capital, Journal of Entrepreneurship, Business and Economics, 7(2), 130–161

Mobile Phones and the Livelihoods of Indonesian Micro-Entrepreneurs: Evidence of Capability Expansion

Mobile phone is one of a few technologies in the world that have created immediate and widespread of an impact mobile phones. The impact of the mobile technology for development has been seen from many different perspectives, but few empirical studies have investigates the technology in relation to human development perspectives and in particular Capability Approach. The present study fills this important gap in the literature. Focusing on micro-entrepreneurs in Indonesia including women and disabled micro-entrepreneurs, this paper investigates how the mobile phones create new and expand existing capabilities of micro-entrepreneurs in running business and improving their livelihoods

Relationship of Innovative Self-Perception with Training, Hiring and Profits, of Micro-Entrepreneurs

Entrepreneurship has become a fundamental theme in Latin America. In recent years, public and private institutions have invested in training entrepreneurs in order to contribute to economic growth, develop work and reduce poverty. In the presented research, it is compared the self-appraisal as innovators, of micro-entrepreneurs who have attended training during the last five years, with micro-entrepreneurs without training, and additionally, it is studied if the micro-entrepreneurs that self-perceive themselves as innovators are more prone to hiring workers and obtain higher profits. The methodology used is hypothesis testing with Chi2 statistic and descriptive statistics. The results exhibit that trained micro-entrepreneurs call themselves innovators in greater proportion and that this relationship is more relevant in some training topics, moreover, that innovative self-perception is linked to a greater intention of hiring and profits. The evidence obtained is considered relevant, since it allows orienting training activities in Latin American countries and improving the selection of topics and methodologies to promote their effectiveness

An explorative study of the synergy between social enterprises and local micro-entrepreneurs in the provision of off-grid clean energy access

Alleviating energy poverty requires innovative and sustainable business models for delivering energy access. Social enterprises have entered off-grid clean energy access markets, pioneering innovative energy access business models, many of which involve the participation of local micro-entrepreneurs. This research study explores the synergy between social enterprises and local micro-entrepreneurs, specifically in terms of the business models used to incorporate local micro-entrepreneurs into off-grid clean energy value chains and the stages of the value chain in which the local micro-entrepreneurs participate. It furthermore identifies key enabling enterprise ecosystem conditions. A qualitative research methodology and a multiple case study design was used. The sample consisted of 11 respondents, selected through purposive sampling. A semi-structured interview served as the primary data collection instrument and a thematic within-case and cross-case analysis was carried out. This research study represents a pioneering effort, contributing to a growing body of knowledge on innovative participatory business models for energy access

BEHAVIOR OF MICRO ENTREPRENEURS JOMBANG AGAINST COST REDUCTION: RELIGIOUS AND SOCIAL VALUE

Behavior of Micro Entrepreneurs Jombang Against Cost Reduction: Religious and Social Value. This research tries to reveal the meaning of cost reduction in the perspective of micro entrepreneurs Jombang. Research method using phenomenology, that is by finding that micro entrepreneurs Jombang interpret cost reduction as a side of cost savings to maintain existence by considering the customer aspects and values of religious religiosity in doing business, and interpret the social values in maintaining customer relations and social environment. This is found when they realize that not all content expenditure as a cost, but the existence of business continuity and religiosity owned make them realize that in the distribution of sustenance all there is to manag

PSYCHOLOGICAL FACTORS OF INNOVATIVENESS AMONG NOMADIC MICRO-ENTREPRENEURS FOR ACHIEVING BUSINESS GROWTH

The objective of this paper is to explore the psychological factors of innovativeness that drives nomadic micro entrepreneurs’ (MEs) in enhancing their business growth in Malaysia. Nomadic micro entrepreneurs refer to those who regularly change the location of their business. To meet the research objective, the current study carried out in-depth interviews among the Nomadic MEs operating their business in Northern region, Malaysia. Twenty Nomadic MEs were interviewed on voluntary basis. Thematic analysis was conducted to identify the recurring themes that delineate psychological factors that may influence innovativeness. Interestingly, the findings revealed that the innovativeness of Nomadic MEs is influenced by four psychological characteristics namely sense of curiosity, interest, risk taking, and risk avoidance. The contribution of this study lies in the identification of four substantial psychological factors that act as a foundation for innovativeness among nomadic micro entrepreneurs’ (MEs) in enhancing their business growth

Microentrepreneur, worker in Brazil and the challenges for health and quality of life

In the current scenario of transformations in the most diverse work activities due to the development and application of technologies, the flexibilization of labor relations, the high level of unemployment and economic uncertainties, there is a simultaneous growth in the number of individual micro-entrepreneurs in Brazil. The individual microentrepreneur personifies the precariousness of work in which health and, as a result, quality of life are compromised. This study analyzed the evolution of the number of micro-entrepreneurs in Brazil from 2010 to 2019 and its correlation with unemployment in the country. The data survey was carried out through the Entrepreneur Portal database and the discussion was based on the literature on worker health. The survey result indicated more than nine million micro-entrepreneurs in 2019. Exposure to precarious working conditions and weakening labor relations are determining factors in the health of workers

The roles of self-efficacy toward micro- entrepreneurs’ competency in Malaysia / Nuralina Mustamam

The purpose of this paper is to analyse the roles of self-efficacy toward micro- entrepreneurs’ competency in Malaysia. There are 4 different independent variables in this research which are marketing, innovation, management and risk-taking. The method used in this research was descriptive analysis or also known as correlational studies. A non-probability sampling was used in the experiment more specifically, judgment sampling. Researcher used Statistical Package for Social Science (SPSS) software to analyse data collected from 100 respondents. The analysis included analysis of descriptive, reliability and regression. The results from this project paper demonstrated a significant effect of management and risk-taking on micro- entrepreneurs’ competency, while the elements of marketing and innovation were trivial. Therefore, it is hoped this study will fill the gap of understanding the importance of self-efficacy in growing more competent micro-entrepreneurs

Analisis Pengaruh Pemberian Kredit terhadap Kinerja Debitur Mikro: Kasus pada ULM ABC, PT Bank XYZ di Jakarta

        One way to support an attempt to activate reel sectors of national economy is by empowering the roles of micro entrepreneurs. Such empowerment can be employed by providing guidance, direction, and assistance so that fundamental problems slowing down the growth of micro entrepreneur empowerment can be overcome. One of the basic problems generally faced by micro entrepreneurs is the problem of finance or source of financing.         The objectives of this study are to find out whether financing or credit provision from the Micro Service Unit (MSU) of ABC to micro entrepreneurs can improve the performance of micro entrepreneurs, and to identify the schemes of credit provision from the MSU of ABC to micro entrepreneurs and their problems in the field.         The methods used in this study were direct observation to the field and questionnaires distributed to 40 selected respondents of micro entrepreneurs who have been debtors of the MSU of ABC and of those 40 respondents, 34 were selected, especially those who got the facility to obtain productive credit. The data of the selected respondents were analyzed using SPSS 11.0 program to analyze the correlation and to find out the impact of credit provision on the performance of micro entrepreneurs. The type of data in this study was those of ratio and they were analyzed statistically using pair t-test or t-test with a significant level of 5%.         The results of the analysis show that on the significant level of 5%, the average result of Profit Margin (PM) after the credit provision increased significantly compared to that before the credit provision; there was no significant decline in the average Return on Asset (ROA) after the credit provision compated to that before the credit provision; there was a really significant increase on the average of Return on Equity (ROE) after the credit provision compared to that before the credit provision; the average of Asset after the credit provision increased quite significantly compared to that before the credit provision; and the average sales after the credit provison increased significantly compared to that before the credit provision. The results on the study on the schemes of credit provision as reflected on features of credit products of the MSU show that all the features of credit products of the MSU are aflopen in nature (with the maximum credit declining periodically based on the schedule) with the minimum duration of 1 (one) year. The results of the observation on the field show that the financing need of the micro entrepreneurs is transactional in nature or seasonal with the duration of between 1 and 6 months not having been accommodated in the product features of the MSU of ABC, PT. Bank XYZ

TECHNOLOGY ADOPTION, SELF-EFFICACY AND ENTREPRENEURIAL BUSINESS SUCCESS

Background and Purpose: The success and demise of a business venture continuously fascinates the attention of many. Specifically, when it relates to micro-entrepreneurs as they are very vulnerable to business failures. Despite many struggles, there are few who succeed. Intrigued with this scenario, the researchers aim to look for factors that lead to the success of micro-entrepreneurs in their business ventures. Following the Social Cognitive Theory and earlier research, the present study predicts that technology adoption and self-efficacy will influence entrepreneurial business success. Additionally, this study posits that self-efficacy mediates the relationship between technology adoption and entrepreneurial business success.   Methodology: The research employed a survey technique using a quantifiable method. The researchers distributed 350 questionnaires to low-income micro-entrepreneurs in Kelantan, Malaysia. Two hundred forty-five people responded, but only 240 data proceeded for further analysis. The research used SPSS and AMOS version 26 to analyse the data gathered. Findings: Results indicated that both variables, namely entrepreneurial self-efficacy and technology adoption, significantly influenced business success. Additionally, the results indicated that entrepreneurial self-efficacy significantly mediated the relationship between technology adoption and entrepreneurial business success.   Contributions: The discoveries provide valuable insights to policy makers, poverty agencies, micro-entrepreneurs and the likes in formulating strategies and intervention programs for entrepreneurial success. Indeed, successful entrepreneurs are crucial in elevating the social status of the poor and eradicating national poverty. In addition, it realises the Sustainable Development Goals’ agendas that all states in Malaysia are free from poverty by 2030.   Keywords: Business success factors, micro entrepreneurs, self-efficacy, technology adoption.   Cite as: Ariffien, M. A., Zakaria, M., Syed Yusuf, S. N., & Ahmad, J. H. (2023). Technology adoption, self-efficacy and entrepreneurial business success. Journal of Nusantara Studies, 8(TI), 257-276. http://dx.doi.org/10.24200/jonus.vol8issTIpp257-27