The Relationships Between Dynamic Incentives Towards Microenterprise Firm Performance in Malaysia

Abstract

Dynamic incentives granted to the micro entrepreneurs for good loan repayment to increase their business growth. The purpose of this research is to examine the relationships between dynamic incentives and microentrepreneurial business performance in Malaysia. The questionnaire obtained cross-sectional data from 450 micro-entrepreneurs who are part of the micro-financing scheme. The dynamic incentives and micro-entrepreneur firm performance were constructed as a reflective measurement model. The current study used the PLS-SEM approach to explore the dynamic incentives for micro-entrepreneur business performance. The survey findings further revealed that dynamic incentives are significantly associated with micro-entrepreneur firm performance with p value < 0.05. 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.