Performance Of Micro Enterprises Research Articles

Islamic finance principles and performance of micro, small and medium enterprises (MSMEs) in Makindye Division Kampala District Central Uganda

Purpose Micro, small and medium-sized enterprises (MSMEs) are vital for economic growth in developing countries. Yet, little research has explored the link between Islamic principles and MSME performance, especially in Uganda. This study aims to investigate the relationship between Islamic financial principles and MSMEs’ performance in Makindye Division Kampala – Uganda. Design/methodology/approach This study used a correlational research design involving 86 respondents from 30 MSMEs between January and May 2023. Data collected through questionnaires was analyzed with Statistical Package for Social Sciences, examining three independent variables: ethicality, Halal investment and prohibition of riba, in relation to MSME performance. Findings The results revealed significant relationships between these variables and MSME performance. Prohibition of riba (r = 0.296, n = 86, p = 0.006), Halal investments (r = 0.308, n = 86, p = 0.004) and ethical principles (r = 0.283, n = 86, p = 0.008) all exhibited a statistically significant relationship. Regression analysis with R = 0.405, R2 = 0.164 and adjusted R2 = 0.134 indicated that all hypothesized variables were significant predictors of MSME performance. Based on findings, this study rejected the null hypothesis, confirming a moderately positive and significant relationship between Islamic financial principles and MSME performance. Originality/value This study underscores the importance of active involvement from key stakeholders such as the Uganda Halal Bureau, Uganda Muslim Supreme Council, Islamic financial institutions and government agencies in integrating robust support mechanisms for MSMEs into their strategic frameworks. Such efforts could enhance Uganda’s economic landscape, aligning with the experiences of Malaysia and Indonesia in leveraging Islamic principles for economic growth.

Enhancing Work Capability, Leadership Style, and Work Motivation for Improved Internationalization Performance of SMEs: A Case Study in the Micro Sector of Worm and Laboratory Animal Production in Indonesia

This study investigates the influence of work capability, leadership style, and work motivation on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the context of internationalization. The method of analysis used is path analysis to test the relationships between variables. The research sample of 135 respondents was chosen to consist of employees working in the industry of breeding worms, rats, and animals for medical purposes in Indonesia. Data were collected through questionnaires distributed to respondents. The results of path analysis indicate a significant positive influence of work capability, leadership style, and work motivation on the performance of MSMEs in the context of internationalization. The implications of these findings underscore the importance of developing work capability, implementing effective leadership styles, and enhancing work motivation to improve the performance of MSMEs in facing the challenges of internationalization.

Analysis of the Influence of Entrepreneurial Orientation on Internasional Business Networking and Competitive Advantage, and Its Impact on the Marketing Performance of SMEs (A Study on SMEs in Kampung Embong Arab, Malang City)

This study aims to analyze the influence of entrepreneurial orientation on business networking and Competitive Advantage and its impact on the export-import performance of Micro, Small, and Medium Enterprises (MSMEs) in the Arab Embong Village, Malang City. A survey method was employed to collect data from MSMEs operating in the village. Hypothesis testing was conducted using multiple regression analysis. The results show that entrepreneurial orientation has a significant influence on the formation of business networks. Furthermore, it was found that business networking has a positive and significant impact on the export-import performance of MSMEs. The implications of these findings underscore the importance of developing entrepreneurial orientation and fostering business networking for MSMEs to enhance their export-import performance. Therefore, it is recommended that the government and relevant institutions provide support and guidance to MSMEs in developing entrepreneurial skills and expanding their business networks.

Financial Access and Financial Risk Attitudes towards Improving Microenterprise Performance

Microenterprise sector plays a pivotal role in driving economic growth in developing nations. This research aims to devise a financial literacy strategy that augments the performance of microenterprise customers of Indonesia's Shariah Microbank in DKI Jakarta. Improving the performance of micro businesses is not only the responsibility of Bank Syariah Indonesia but also the responsibility of many parties, namely the role of the government through the establishment of KNEKS and KDEKS which aim to increase sharia financial literacy and need to be supported by associations both the Sharia Economic Society (MES) and universities who are concerned with increasing sharia financial literacy which leads to improving the performance of micro businesses. This is achieved by investigating the determinants of microenterprise performance, focusing on the financial literacy of the customers availing microfinance services from the said bank. This study adopts a quantitative approach and employs Structural Equation Modeling (SEM) to analyze data, with financial access as mediating variables. The results are further evaluated through Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis—a robust research technique for identifying obstacles and refining effective strategies. The study comprises a sample of 500 microenterprise operators who are clients of the Shariah Microbank in DKI Jakarta. The analysis reveals the following insights: (1) Financial literacy exhibits a positive and moderate influence on the microenterprise performance of Shariah Microbank customers in DKI Jakarta. (2) Financial access demonstrates a positive and moderate impact on microenterprise performance. (3) Financial literacy exhibits a positive and moderate effect on financial access. (4) financial literacy has a positive and moderate effect on financial risk attitudes, (5) financial risk attitudes have positive an insignificant effect on micro business performance, (6) financial literacy through financial access as a mediating variable has a positive and moderate effect on micro business performance, (7) financial literacy through financial risk attitudes variables have positive an insignificant affect the performance of micro business enterprises. This encompasses strategic programs including: (1) Financial proficiency through collaborative Shariah microfinance training within the Islamic Ecosystem and expansion and optimization of the BSI Microentrepreneur Center; (2) Financial attitude and behavior enhancement via workshops on Shariah microfinancial planning and mentorship by BSI personnel for microenterprise operators; (3) Financial access enhancement through intensified digitalization of Shariah microfinancial services and integration of bundled products and services (e.g., incorporating licensing and halal standardization).

INFLUENCE OF RECORD KEEPING ON THE PERFORMANCE OF MICRO AND SMALL ENTERPRISES IN THE CONTEXT OF THEIR AREA OF OPERATION: AN EMPIRICAL STUDY

Objective: The target of this paper is to look into how record keeping affects the performance of Micro and Small Enterprises (MSEs) in the context of their place of operation. Theoretical Framework: After going through the literature, it is identified that not a single study has been done in the research area of this paper. Method: In this study, a simple survey was conducted among 268 MSEs functioning in Karimganj District of Assam. Multiple regression analysis with SPSS 21 was used to analyse the data. Results and Discussion: Result of the analysis shows that female participation is poor in the study area and there is a positive correlation with R2 = 0.460 implying that record keeping Practices in the context of their area of operation is 46% responsible for explaining the dependent variable i.e., Performance of MSEs. Research Implications: The study suggests that maintaining proper records can significantly improve the performance of MSEs. Furthermore, the adoption of computerized accounting systems can provide a more efficient and accurate means of record keeping, which can lead to improved financial performance. Originality/Value: The study revealed that the majority of micro and small businesses failed to keep accurate records of their commercial dealings. However, those enterprises that kept proper records had a better understanding of their business operations and could make more informed decisions.

Effect of Digital Banking on Financial Performance of Micro and Small Enterprises in Nairobi County, Kenya

The financial performance of MSEs is critical to the performance of the economy since MSEs are some of the best supporters of the government through employment. In recent years banks have developed innovative products and offered a wide range of services to improve their performance, which is the ultimate goal of banks (Mugodo, 2016). Digital banking has several benefits to financial services users such as micro and small enterprises and digital banking providers. The general objective of the study is to establish the effect of digital banking on the financial performance of micro and small enterprises in Nairobi County, Kenya. The specific objectives of the study are to determine the effect of digital payments on the financial performance of micro and small enterprises in Nairobi County, to establish the influence of digital credit on the financial performance of micro and small enterprises in Nairobi County, and to establish the influence of digital savings on the financial performance of micro and small enterprises in Nairobi County, Kenya. The study was guided by the theory of financial innovations, the technology acceptance model theory, and the diffusion of Innovation Theory. This study employed an explanatory research design. The target population is comprised of retail traders/managers in the micro and small enterprises in Nairobi County. For purposes of this study, the population was MSEs, which conduct their business in Nairobi County. From the target population of 10,079 retail traders, Fishers et al (2007) formula was used to pick a sample of 384 retail traders as the sample of the study. The study utilized a semi-structured questionnaire to collect data from the respondents. Data was analyzed aided by descriptive statistics, including variability and central tendency measures of frequencies. The findings of the diagnostic tests revealed that there was no multi-collinearity among the independent variables (VIF=1.281), and the results of the normality test showed that the variables were normally distributed. The findings of the study were that there was a positive and significant relationship between digital payments and financial performance (β1=0.682, p=0.0000.05), there was also a positive and significant relationship between digital credits and financial performance of micro and small enterprises (β2=0.266, p=0.0030.05). There was also a positive and significant relationship with the financial performance of micro and small enterprises in Nairobi County (β3=0.488, p=0.0070.05). The study concluded that digital payments, digital savings, and digital credits had a positive and significant effect on the performance of micro and small enterprises in Nairobi County. The study recommends that more needs to be done in terms of application security due to the risk of cyber-attacks and fraud. Institutions should invest more in research to ensure that their applications used by customers are safe to prevent cyber-attacks and fraud. The study also recommends that MSE’s need to maintain a good record of credit and improve on their saving to access more credit through digital credit applications.

The role of supply chain management practices, supply chain responsiveness, and organizational capabilities on organizational performance

Purpose-Several internal and external elements impact an organization's performance. This study examines organizations' performance using both internal and external elements. Organizational capabilities are the internal aspects of the study, whereas supply chain management practices and supply chain responsiveness are the external factors. These three elements are believed to have a significant impact on an organization's performance. Design/Methodology/Approach-The study population focused on furniture micro, small, and medium-sized enterprises in Yogyakarta, Indonesia. The research data were collected through questionnaires administered to respondents, and the results of 50 respondents were obtained. Then, a model analysis was applied using Smart PLS. Findings-Supply chain management practices positively impact organizational performance, and supply chain responsiveness improves organizational performance. Organizational capabilities also have a favorable effect on organizational performance. If these three elements can be effectively utilized, it will enhance organizational performance. Research limitations/implications-Micro, small, and medium-sized enterprises must understand the importance of supply chain management and maximize its use to promote improvements in organizational performance. Business actors must maximize their efforts to achieve organizational success by considering other aspects, such as organizational capabilities. Originality/value-Research on organizational performance is currently lacking, especially in the case of micro, small, and medium-sized enterprises that are specifically associated with particular industries. Government rules, strategy orientation, and green supply chain management are just a few of the external and internal factors that have been the subject of prior research on organizational performance. As a result, this study examines the characteristics of supply chain management practices, supply chain responsiveness, and organizational capabilities in order to measure the performance of furniture micro, small, and medium-sized enterprises in Yogyakarta, Indonesia.

The Role of Operational Performance as a Mediator in the Influence of Supply Chain Management Practices on the Financial Performance of MSMEs

<p><em>Financial performance is a tool for measuring the success of a business. Managers can make appropriate decisions by reviewing the results of the company's financial performance. One of the aspects believed to influence the financial performance of a company is operational performance. Of course, this must be done through supply chain management practices in order to achieve good financial performance of the company. This research aims to determine the mediating role of company operational performance in the influence of supply chain management (SCM) practices on company financial performance. A quantitative approach was carried out by distributing questionnaires to 100 business leaders. Primary data consists of the results of filling out a questionnaire by the business owner. The data collection technique uses a survey method by distributing questionnaires to respondents, namely business owners. The MSMEs in question are 100 MSMEs located in Yogyakarta. Validity and reliability tests are carried out before implementing research analysis techniques. In this research, we examine the effect of SCM practices on financial performance through the operational performance of micro, small and medium enterprises in Bantul Regency, Yogyakarta Special Region (UMKM). The analysis technique uses structural equation modeling-partial least squares (SEM-PLS) with the WrapPLS application. The researchers estimated the results of direct effects and indirect effects. The research results prove that operational performance as a mediator in SCM practices influences the financial performance of the company. Apart from this, it is also proven that supply chain management has influence on operational performance, operational performance has influence on financial performance and supply chain management also has a direct influence on financial performance.</em></p>

Risk management practices and financial performance nexus: Evidence from MSMEs in Osun State, Nigeria

This study assessed the effect of enterprise risk management on the firm financial performance of Micro, Small and Medium-scale Enterprises in Osun state Nigeria. Precisely, the risk encountered, the adoption of risk management practices, the implementation of Enterprise Risk Management (ERM) practices, and the financial performance of micro, small and medium scale enterprises in Osun state Nigeria. Primary data was used for this study; a well-structured questionnaire was used to elicit data from 273 respondents. The study population consists of owners and managers of small and medium businesses in Osun state, Nigeria. Data were analyzed using descriptive analysis and was the inferential statistic used to test the hypotheses. The results showed that market (33.7%), strategic (57%), financial (46.9%), operational (34.2%), management (47.6%), and technological (45.4%) are risks prevalent to micro and small businesses, but most of the respondents disagreed that the relationship of their staff to the customer is poor. Risk acceptance with a mean score of (2.27 ± 1.21) is the most utilized risk management practice adopted by the MSMEs. The implementation of ERM practices shows that MSMEs more utilized setting of objectives (43.6%), risk identification (38.3%), risk assessment (36.2%), and control activities (31.2%) and the financial performance of the businesses was moderate (69.7%). The correlation analysis shows no significant relationship between the scale of business and the adoption of risk management practices. Also, the regression analysis shows that Risk identification (? = 0.388, p ?0.01) and Control activities (? = 1.096, p ?0.01) are the only ERM variables that significantly affect financial performance. The study concluded that the implementation of enterprise risk management practices has a significant effect on the financial performance of Micro, Small and Medium enterprises in Osun State, Nigeria.

Digital adoption, business performance, and financial literacy in ultra-micro, micro, and small enterprises in Indonesia

This study investigates the factors affecting digital adoption by ultra-micro, micro, and small enterprises (UMSEs) based on a survey of 5035 UMSEs in 17 major provinces in Indonesia. We use the survey data to construct a digital adoption index to evaluate the variations in digital adoption in the five business processes of e-procurement, POS, e-marketing, e-commerce, and digital payment. This index not only identifies whether a firm has adopted digital technology but also considers the dimensions of use to measure the level of adoption more precisely. Using the primary data, we employ a simple regression model, and the results demonstrate that owner demographic characteristics, firm-specific factors, business environment, connectivity infrastructure quality, and culture are associated with disparities in digital adoption by UMSEs. Our findings also reveal a positive and significant correlation between digital adoption on business performance. Based on a two-stage least squares (2SLS) model, we found strong evidence of the impact of digital adoption on UMSE owners’ level of financial literacy. The latter result suggests that improving digital adoption among UMSEs could enhance their financial literacy. Overall, these findings confirm the vital role of digital transformation for UMSEs to achieve growth and competitiveness in the global market, which requires robust support from policymakers.

Weaving Futures: Enhancing Learning and Innovation Capabilities of Rural Women in the MSME Textile Sector

Purpose: Industrialization has led to centralized development, urbanization, migration and concentration of people in selected areas, that is, cities. The current model of development is not a sustainable one. While progress has been made through this model, it has also increased social inequalities, damaged health and caused irreversible depletion of the natural environment. The need of the hour is to create a new model of development to achieve sustainable development across rural and semi-urban regions. Objective: The objective of the new development model is to find out the relation between learning and innovation capability on the customer-based performance of a textile-based micro, small and medium enterprise (MSME). The research questions that will be answered are how rural women working in textile MSMEs can improve their learning and innovation capabilities? What is the impact of learning and innovation capabilities on the customer-based performance of the MSMEs? Methodology: The research method used for this study was based on primary data collected from the stakeholders of rural textile-based MSMEs and secondary data. Findings and Suggestions: The paper suggests that localized micro-factories enable people to stay close to their roots. The need of the hour is to train people with the required skill sets. The learning and innovation capability of the MSMEs reflects on their customer-based performance. The implementation of advanced technology will make localized micro-factories profitable. These technologies will provide services to citizens efficiently and equitably. The proposed smart cities will have to create more equitable and symbiotic relationships with the surrounding semi-urban and rural areas. The emphasis should be on learning new techniques of production using locally available resources. Once the new techniques have been learned, the company should be able to implement them innovatively to improve its customer experience.

The Effect of Industry Extension Services Project on the Performance of Small and Micro Enterprises

The purpose of the study was to investigate the effect of industry extension service projects on the performance of micro and small enterprises. Thus, the study utilized an explanatory and descriptive research design to achieve the objectives of the research. The study targeted MSEs that had been in operation for more than two years at the time of the study. The research had a total population of 606 MSEs, out of which a sample size of 241 operators was realized using Taro Yamane’s formula. Thus, a stratified sampling technique and simple random sampling were employed to select representative samples. Beside, primary and secondary data were used in the study. The analysis was conducted using SPSS version 20 on 223 fully responded questionnaires. The data was analyzed using descriptive and inferential statistics. In addition to this, correlation and regression models were used to analyze the variables of the study. The finding proved that IESP support provided by TVET trainers to MSEs was not adequate. Regression analysis indicated that entrepreneurship, technology, kaizen, and technical skill support had a positive and significant relationship with the performance of MSEs. Thus, it is recommended that the TVET College should provide regular industry extension service support to MSEs through four packages.

Pengaruh E-commerce, Pengetahuan Akuntansi dan Sistem Informasi Akuntansi Terhadap Kinerja UMKM

MSMEs are of paramount importance in the economic landscape of a nation. The performance of Micro, Small, and Medium Enterprises (MSMEs) pertains to the extent to which these firms successfully accomplish their economic and business goals. The objective of this study is to determine and examine the impact of e-commerce, accounting expertise, and accounting information systems on the performance of MSMEs. The study used a quantitative research methodology, with a sample size of 135 participants selected using the Slovin formula. The technique of purposive sampling is employed for participant selection. Data collection entails the dissemination of questionnaires employing Likert scales, followed by analysis using SPSS Version 26. Based on the results, it can be concluded that the performance of MSMEs is significantly influenced by the e-commerce factor, as supported by a T-test significance value of 0.004, which falls below the predetermined threshold of 0.05. However, the significance value of 0.548 from the T-test indicates that the variable of accounting expertise does not significantly affect the performance of MSMEs. This value exceeds the predetermined threshold of 0.05. In addition, the significance value of 0.000 for the T-test on accounting information systems means that this variable has a substantial effect on the performance of MSMEs; this value is less than the critical value of 0.05. Hence, it can be deduced that the performance of micro, small, and medium enterprises (MSMEs) is significantly impacted by the variables of e-commerce and accounting information systems. Nonetheless, there is no discernible effect of accounting expertise on the performance of MSMEs.

Linking entrepreneurial leadership to quality performance of micro and small-scale enterprises in service sector: the mediating role of service innovation

Linking entrepreneurial leadership to quality performance of micro and small-scale enterprises in service sector: the mediating role of service innovation

The Influence of Supply Chain Integration, Agility, and Innovation on Company Performance

This research aims to determine and investigate the role of supply chain integration, agility, and innovation in the performance of Micro, Small, and Medium Enterprises (MSMEs) operating in the food and beverage sector. By optimizing these factors, companies can enhance the value and profitability generated across the supply chain, encompassing value addition from suppliers to manufacturers, manufacturers to distributors, and ultimately to consumers. This value is created from the service value and price of a finished product, with the total costs borne by the entire supply chain system. The study focuses on MSMEs in the Yogyakarta region, employing random sampling techniques to gather data from various stakeholders, including owners, managers, and operational staff. Questionnaire-based data collection is followed by Structural Equation Model (SEM) analysis using AMOS software. The results of this research indicate that integration, agility, and innovation have a positive effect on company performance, both in terms of financial performance and operational performance. This study contributes to the supply chain literature, specifically in the food and beverage industry, by expanding the understanding of supply chain dynamics. To enhance supply chain integration, managers can implement broader strategies and utilize information technology for better collaboration. To improve supply chain agility, the focus should be on developing flexibility and partnering with agile businesses. Supply chain innovation can be promoted through investments in technology and prioritizing innovation in products, processes, and business models.

Determinants of Micro, Small and Medium Enterprises (SMEs) Performance

This study aims to analyze the influence of capital, human resources and technology on the performance of micro, small and medium enterprises (SMEs) in Gorontalo City. The analysis method uses multiple linear regression with a crossection approach. The data used in this study was primary data sourced from 30 respondents. The results of this study show that: 1) capital has a negative insignificant effect on the performance of SMEs; 2) human resources have a positive insignificant effect on MSME performance and 3) technology has a significant positive effect on SMEs performance. This study provides practical implications for the government as a policy maker in an effort to improve the performance and empowerment of SMEs, especially in Gorontalo City.

Strengthening the Performance of Micro, Small, and Medium Enterprises (MSMEs) Through Social Media Adoption with Human Resource Competency as Moderation and Implementation of The Penta Helix Model in Facing New Normal Challenges in Jember Regency

Strengthening the Performance of Micro, Small, and Medium Enterprises (MSMEs) Through Social Media Adoption with Human Resource Competency as Moderation and Implementation of The Penta Helix Model in Facing New Normal Challenges in Jember Regency

The Influence of the Use Financial Technology, Owner Financial Literacy, and Risk Tolerance on the Performance of MSMEs in Indonesia

This study investigates the influence of financial technology adoption, owner financial literacy, and risk tolerance on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Amidst the diverse landscape of Indonesian MSMEs, characterized by challenges in accessing formal financial services, the study examines the role of FinTech in overcoming these barriers and fostering business growth. Additionally, it explores the significance of owner financial literacy in facilitating informed decision-making and the strategic importance of risk tolerance in driving business innovation. Through a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, the study offers insights into the nuanced relationships between these factors and MSME performance. The findings provide actionable insights for policymakers, financial institutions, and MSME owners, aiming to promote sustainable MSME development and economic prosperity in Indonesia.

The Effect of Payment Gateway Mediation on The Influence of Human Capital on Financial Performance Micro, Small and Medium Enterprises

Purpose: The purpose of this research is to empirically examine the relationship between human capital and the financial performance of Micro, Small, and Medium Enterprises (MSMEs), with payment gateways serving as a potential mediator. Given the significant contribution of MSMEs to economic growth and the challenges they face in financial management, this study aims to explore the role of human capital and payment gateways in enhancing the financial performance of MSMEs, thereby providing insights into strategies for improving the economic viability of this sector. Methods: The research employs a descriptive quantitative approach utilizing primary data. Hypothesis testing is conducted using WarpPLS 7.0 software. The study population consists of all MSMEs in the city of Surabaya, with a total of 100 respondents selected through random sampling. Data are collected to analyze the influence of human capital on financial performance, the impact of payment gateways on financial performance, and the potential mediating role of payment gateways in the relationship between human capital and financial performance. Results and Discussion: The test results indicate that human capital has a positive and significant effect on both the financial performance of MSMEs and the utilization of payment gateways. Additionally, payment gateways demonstrate a positive and significant impact on the financial performance of MSMEs. Furthermore, the findings suggest that payment gateways mediate the relationship between human capital and financial performance, indicating that the adoption of payment gateways enhances the link between human capital and financial outcomes in MSMEs. Implications of the Research: The research findings hold several implications for policymakers, MSMEs, and stakeholders involved in economic development. By highlighting the importance of human capital and payment gateways in improving the financial performance of MSMEs, this study underscores the significance of investing in workforce development and adopting digital payment solutions. Encouraging the use of payment gateways among MSMEs can mitigate financial management risks and enhance financial performance, thereby contributing to the overall economic growth and sustainability of the MSME sector. Originality/Value: This research contributes to the literature by examining the interplay between human capital, payment gateways, and financial performance in the context of MSMEs. By empirically testing the mediating effect of payment gateways, this study offers new insights into the mechanisms through which digital payment technologies can facilitate financial management and improve the economic viability of MSMEs. The findings provide practical implications for policymakers and MSME stakeholders seeking to leverage human capital and digital innovation to foster sustainable economic development.

Entrepreneurial Specific Factors, Support Factors and Micro enterprises Performance: The Case of Malaysian Microcredit Program

The study's objective is to analyze the influence of several elements related to entrepreneurial-specific factors and support factors on the performance of micro-enterprises. The study sample consisted of a total of 756 micro-entrepreneurs who were involved in two main microcredit programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM) and The Venture Group Economic Fund (TEKUN). The study’s findings, obtained through multiple regression analysis, revealed that factors such as personal entrepreneurial competencies, management practice, microcredit programs and government support exert a significant influence on the performance of micro-enterprises. This finding is consistent with the Resource Base View (RBV) theory which links the importance of internal and external resources as a catalyst for competitive advantage and the performance of a business. The influence of family and commitment to religious principles is less significant. It was associated with the attitude factor of micro-entrepreneurs, who frequently disregard the fundamental principles of religion while making judgments. The impact of family influence on micro enterprises' performance was determined to be negligible. Family members make minimal contributions in terms of finances, energy, or moral support. The formulation of policies is crucial for these insights, which highlight the importance of providing entrepreneurship training and implementing excellent management practices. Additionally, financial support is necessary to promote the growth of micro-enterprises in Malaysia. The government plays a crucial role in facilitating the growth of micro companies by implementing various support programs. An efficient distribution system can minimize the leakage of programs and maximize benefits for the recipients who are intended.