Abstract
PurposeThis study aims to examine the effect of creativity and innovativeness, risk taking propensity, proactiveness and autonomy on entrepreneurial competency and performance among micro-enterprises in Kelantan, Malaysia.Design/methodology/approachAdopting a cross-sectional design, the authors collected data from 403 micro-entrepreneurs who were registered under “Majlis Amanah Rakyat” and “Majlis Agama Islam dan Adat Istiadat”. Quantitative data were collected through structured interviews from September 2017 to December 2017.FindingsThe findings revealed that creativity and innovativeness, proactiveness and autonomy had a positive influence on entrepreneurial competencies. In addition, autonomy and entrepreneurial competencies had a positive effect on micro-enterprise performance. Then, entrepreneurial competencies showed a mediating effect on the relationships between creativity, innovativeness, autonomy and micro-enterprise performance.Originality/valueThe findings contributed to resource-based view and enriched the entrepreneurship literature, particularly in the context of small businesses in emerging economies. This study recommended underlying organizations to pay attention to the improvement of creativity and innovativeness, proactiveness, autonomy and entrepreneurial competencies among low-income entrepreneurs through useful policies and training programs, which were expected to improve micro-enterprise performance and encourage poor households to perform entrepreneurial activities for better socio-economic conditions.
Highlights
IntroductionSmall- and medium-sized enterprises (SMEs) play a crucial role in creating jobs and contributing to the socio-economic development (Bowen et al, 2009; Wolcott et al, 2008). Wolcott et al (2008) noted that different types of micro-enterprises (full-time/part-time, home-based, street-front or farm-based) can facilitate enterprise formation process
Small- and medium-sized enterprises (SMEs) play a crucial role in creating jobs and contributing to the socio-economic development (Bowen et al, 2009; Wolcott et al, 2008). Wolcott et al (2008) noted that different types of micro-enterprises can facilitate enterprise formation process
Given that micro-enterprise performance contributes to industrialization and its association with human capital characteristics (Barney et al, 2001), this study examined the effect of entrepreneurial orientation on entrepreneurial competencies and enterprise performance among micro-enterprises in Kelantan, Malaysia
Summary
Small- and medium-sized enterprises (SMEs) play a crucial role in creating jobs and contributing to the socio-economic development (Bowen et al, 2009; Wolcott et al, 2008). Wolcott et al (2008) noted that different types of micro-enterprises (full-time/part-time, home-based, street-front or farm-based) can facilitate enterprise formation process. Wolcott et al (2008) noted that different types of micro-enterprises (full-time/part-time, home-based, street-front or farm-based) can facilitate enterprise formation process. All these micro-enterprises can contribute significantly to the socioeconomic development of lowincome households that ensure a sustainable economic growth (Al-Mamun et al, 2016). Entrepreneurial competencies can benefit small enterprises or organizations with insufficient financial resources and technological support (Peric et al, 2017; Al Mamun, et al, 2018) These competencies are considered as the abilities to complete a task by utilizing resources that improve micro-enterprise performance (Al-Mamun et al, 2016). The competencies entrepreneurs possess are expected to facilitate enterprise performance and economic growth (Mitchelmore and Rowley, 2013)
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