The Interactions between Financial Inclusion with Microentrepreneurs Firm Performance in Malaysia

Abstract

This study is to examine the relationships between financial inclusion with microentrepreneur's firm performance in Malaysia. Cross-sectional data from the questionnaire were collected from 373 micro-entrepreneurs operating under the micro-financing scheme. Hence, the present study aimed to revisit the financial inclusions towards micro-entrepreneur firm performance using the approach in PLS-SEM. The Financial inclusion and micro-entrepreneur firm performance were constructed as a reflective measurement model. The survey findings further revealed that financial inclusion is significantly associated with micro-entrepreneur firm performance. This research's outcomes can benefit decision-makers such as Malaysian governments, microfinance organizations, and the decision-makers regarding distributing funding and promoting successful micro-entrepreneur performance in the long-run.