Women Micro-entrepreneurs Research Articles

Key Success Factors in Entrepreneurial Development among Women Micro-Entrepreneurs in Malaysia

This study explores factors influencing entrepreneurial development among women microentrepreneurs in Malaysia. Using self-administered questionnaires distributed to 50 participants, the research examined four key factors: family support, business prospects, sociocultural factors, and government support, with entrepreneurial development as the dependent variable and perception of success as a mediator. The data was analyzed using SmartPLS software. Results indicated that most variables had reliable Cronbach Alpha values, though issues with discriminant validity were found. The structural model showed substantial explanatory power, and most path coefficients indicated positive relationships, except for the link between government support and entrepreneurial development. However, only one hypothesis was accepted, revealing that socio-cultural factors significantly influence entrepreneurial development through the perception of success. The study suggests that future research should focus on specific sectors within microenterprises and include a larger sample size for a broader understanding of women’s economic contributions. This research provides valuable insights for policymakers aiming to enhance support for women microentrepreneurs in Malaysia.

Why formalize? Examining the context of Peruvian women microentrepreneurs

Purpose In Latin America, the growing participation of women microentrepreneurs who continue to operate in the informal sector stands out. The purpose of this study is to analyse if the context where the business is developed influences the gender perspective in the decision of the microentrepreneur to remain in the informal sector, mainly in Peru, which registers high rates of informality in businesses led by women. Design/methodology/approach The National Household Survey for the period 2014–2021 is used with a sample of 63,020 micro and small Peruvian companies that have been in operation for more than three years. The data is analysed with the logistic regression technique. Findings The results show that microenterprises run by women are less likely to be formal. However, this situation would change if these businesses were larger. In addition, women microentrepreneurs face limitations in accessing resources, and their businesses frequently run from their homes, allowing them to hide their activities from regulatory bodies. Originality/value The context of Peruvian women microentrepreneurs who have been in operation for over three years and who persist in informality is analysed. It is essential to know the characteristics of this sector to formulate policies that encourage the formalization of companies, particularly in Latin America, incorporating gender differences.

Rural women microentrepreneurs, consumer acquisition, and value delivery: Evidence from a quasi-experiment in rural India

Rural women microentrepreneurs, consumer acquisition, and value delivery: Evidence from a quasi-experiment in rural India

The effect of financial literacy on Indonesian women micro entrepreneurs through financial intermediation

Financial literacy and financial intermediation are vital tools for all businesses, particularly women micro-entrepreneurs. Even with modest means, they have been shown to considerably contribute to economic independence at the family, national, and international levels. Since Indonesian women microentrepreneurs still have trouble getting bank loans (being unbanked), the majority of them join cooperatives. Cooperatives are without doubt the financial intermediation institutions of choice for micro-communities; nonetheless, research on the subject is still scarce, particularly in developing nations. In order to bridge this gap, this study looks at the role of cooperatives as financial intermediation organizations. Examining the impact of financial literacy through cooperative financial intermediation on the financial performance of Indonesian women microentrepreneurs is the main goal of the study. The cross-sectional data were identified using purposive approaches and processed with the use of Smart PLS as part of an explanatory research approach. The direct influence test results demonstrate that enhancing financial performance and financial intermediation are directly impacted by financial literacy. Additionally, financial intermediation (cooperatives) was successful in influencing the impact of financial literacy on the financial performance of micro-entrepreneurs in Indonesia, according to the findings of the mediation effect test.

SHARIA MICROFINANCE MODELS: A GRAMEEN BANK APPROACH FOR SUSTAINABLE CONSTRUCTION AND WELFARE ENHANCEMENT

This research aims to build a model for strengthening Sharia microfinance through an adapted Grameen Bank replica based on the pillars of leadership, collaboration, spirituality, and women's freedom. This research used a quantitative method to analyze a Grameen Bank replica or build a model for strengthening Sharia microfinance. It provides an early description of the model's independent and dependent variables using Path Investigation and Structural Equation Modeling (SEM). Data were gathered through participatory observation methods, interview techniques, and the distribution of SEM questionnaires to MFI managers and beneficiary customers. The findings indicate a link between the influence of the Grameen Bank-based Islamic Microfinance Institution system on partners in terms of leadership, cooperation, economy, community, and spirituality, as well as alternative strategies for strengthening Grameen Bank-based MFIs in improving the welfare of women's microbusiness groups. This research encourages more attention and implementation of Islamic microfinance models in an effort to improve social and economic welfare, especially among vulnerable groups such as women micro-entrepreneurs.

Entrepreneurial Competencies, Business Coaching and Business Success among Women Micro-entrepreneurs

The critical contribution of women micro-entrepreneurs to the growth and development of micro-businesses worldwide, particularly in Malaysia, cannot be overstated. These women generate income and employment opportunities, critical to economic progress. However, to ensure their continued success, it is essential to identify the key factors that contribute to this achievement. Additionally, the role of women micro-entrepreneurs has evolved, and they now require additional competencies beyond their traditional skill set to meet the challenges of the business world. Therefore, business coaching is an indispensable tool for enhancing these competencies, directly influencing their business success. For this study, we employed quantitative research methods to test sixteen hypotheses related to entrepreneurial competencies and the perceived usefulness of business coaching in influencing the business success of women micro-entrepreneurs. The data was collected through a selfadministered questionnaire completed by 261 women micro-entrepreneurs who participated in business coaching sessions. We used a cluster sampling technique to select the samples. Our findings showed that women microentrepreneurs typically start businesses between the ages of thirty-one and forty to achieve work-life balance and support their families. Many have children aged five to twelve and limited education, making entrepreneurship more appealing than traditional employment. Over half of the women micro-entrepreneurs had launched a business before and faced challenges sustaining their ventures. Moreover, our study demonstrated that commitment, conceptual, opportunity, and relationship competencies significantly influenced the business success of women micro-entrepreneurs, making them critical predictors of their success. This study also found that the perceived usefulness of business coaching plays a moderating role in the relationships of strategic, commitment, conceptual, and relationship competencies toward the business success of women micro-entrepreneurs. Therefore, strategic, commitment, conceptual, opportunity, and relationship competencies, along with the perceived usefulness of business coaching, are critical to the business success of women micro-entrepreneurs in Malaysia.

The role of trust as an informal social mechanism for contract enforcement among young women microenterprises in financial markets in sub-Saharan Africa

PurposeThe main purpose of this paper is to establish whether trust plays a significant mediating role in the relationship between access to microcredit and survival of young women microenterprises in under-developed financial markets in sub-Saharan Africa. The main focus of this paper is to specifically test whether relational social capital built by young women from homogeneous and heterogeneous groups can be more effective in promoting economic exchange in under-developed financial markets since interpersonal trust has recently been found to harbor group collusion, especially among kins. Overall, the paper distinguishes trust among individuals based on their age, gender and ethnic diversity.Design/methodology/approachThis study used structural equation model to test whether trust significantly mediates the relationship between access to microcredit and survival of young women microenterprises using Analysis of Moments Structures (AMOS) based on recommendations by Hair et al. (2022) and Baron and Kenny (1986).FindingsThe findings from this study revealed that trust significantly and positively mediate the relationship between access to microcredit and survival of young women microenterprises in under-developed financial markets in sub-Saharan Africa. Trust developed from relational social capital among young women from homogeneous and heterogeneous groups create a stronger basis for economic exchange in under-developed financial markets.Research limitations/implicationsWhile this study generates a positive evidence on the impact of access to microcredit on survival of young women microenterprises, the results cannot be over emphasized and generalized because the data were collected from only a single developing country. Future research may extend the current study to include other developing countries to make a more justified comprehensive analysis.Practical implicationsThe findings from this study highlights the importance of using a blend of social policy guided by norms combined with formal regulations as an informal contract enforcement mechanism to achieve efficient economic exchange in under-developed financial markets. Relational social capital formed on the basis of informal norms among groups from diverse population can supplement formal laws to enforce contractual obligations in microcredit access, especially among youthful microentrepreneurs, who seems to have stronger relational behaviors than adults. Financial institutions such as banks should use informal contract enforcement system to increase the scope of financial inclusion of young microentrepreneurs, especially in unbanked rural communities in sub-Saharan Africa, Uganda inclusive where formal laws are weak and sometimes not functional. The findings also show that younger people have a stronger relationship behavior than adults. Therefore, policy should create structures that can promote social activities among youth. Governments in sub-Saharan Africa, Uganda inclusive through their respective Ministry of Gender, Labour and Youth Affairs should create youth clubs that can increase interaction and relational social capital among the younger population to derive economic empowerment. sub-Saharan African governments, Uganda inclusive should rely more on social policy based on relational social capital as a missing link to promote and achieve economic development.Originality/valueThis paper provides an evidence on the unique role of age, gender and ethnicity in information sharing and exchange based on social policy in the financial market to limit group collusion. The authors indicate that diversity in relational social capital among young women microentrepreneurs prohibit strategic defaults, which promotes access to microcredit for survival of women micro small and medium enterprises (MSMEs) through socialization. High level of interaction among younger women microentrepreneurs from homogeneous and heterogeneous groups allow them to close the information gap to timely meet borrowing contractual obligations to derive economic benefits. The paper shows that younger women have more trust than older women while searching for economic value through socialization. In fact, social policy can wholly supplement formal policy to promote growth and survival of young women microenterprises, especially in sub-Saharan Africa, Uganda inclusive.

Microfinance and Women Microentrepreneurs: Key Variables Influencing Socio-Economic and Financial Success

Microfinance and Women Microentrepreneurs: Key Variables Influencing Socio-Economic and Financial Success

Impact of Microcredit on Income and Social Status of Rural Women Microentrepreneurs in Southeast Nigeria

This study investigates the impact of microcredit on poverty reduction and social status enhancement among rural women microentrepreneurs in patriarchal Southeast Nigeria. The objective is to assess whether microcredit improves economic conditions and elevates social standing within a traditionally patriarchal society. Employing a quantitative approach, the study surveyed 340 rural women who have accessed microcredit across four states in Southeast Nigeria. Data were collected using a structured questionnaire, and statistical analyses were conducted to evaluate the effects of microcredit on income generation and social status. The findings reveal that while microcredit significantly boosts income generation, its impact on social status is less pronounced, constrained by persistent patriarchal norms and limited supportive measures. To address this limited impact, it is recommended that microcredit programs be complemented with comprehensive social support services. Such initiatives should focus on improving community relationships and addressing gender-specific barriers within the socio-cultural context. By integrating these support mechanisms, microcredit programs can more effectively enhance both the economic and social standing of women, fostering a more supportive environment for their empowerment.

Informality as a choice to do legitimate business: evidence from Peruvian women in times of COVID-19

PropósitoNos países em desenvolvimento, as mulheres microempreendedoras caracterizam-se por serem informais, criando um desafio para a sustentabilidade dos seus negócios. A presente investigação analisou diferentes negócios que adotam essa forma de operação com o argumento de que a formalidade não é necessária por serem negócios legítimos (razão institucional); além disso, foi incorporado o papel do gênero na gestão empresarial e se validou a consistência dos resultados num contexto de COVID-19.Desenho/metodologia/abordagemSe utilizaram dados da Pesquisa Nacional de Domicílios do Peru para desenvolver uma análise comparativa entre o período 2018–2019 (pré-COVID-19), composto por uma amostra de 14.077 observações, e o período 2020–2021 (COVID-19), com 7.922 observações. A unidade de análise é a microempresa informal com mais de três anos de operação e os dados são analisados através de um modelo logístico.DescobertasResulta maior a probabilidade de adoção da informalidade por motivos institucionais no caso das proprietárias em contraste com os proprietários, quando se trata de um negócio pertencente ao setor do comércio e que funciona numa casa com serviços básicos, enquanto esta probabilidade diminui se o negócio não tem local fixo. Estes resultados são consistentes em tempos pré-COVID-19 e COVID-19.Originalidade/valorA pesquisa tem como objetivo contribuir no fechamento de brechas na geração de evidências que ajude a compreender o comportamento dos microempreendedores informais nos países em desenvolvimento, permitindo uma melhor abordagem desta problemática para o desenho e implementação de políticas públicas adequadas. Tudo isto contribuirá para o cumprimento dos Objetivos de Desenvolvimento Sustentável.

Effect of Behavioural Biases on the Financial Decisions of Rural Women Micro-entrepreneurs: A Scale Development Approach

The basic purpose of this article is to understand the impact of behavioural biases on the financial decisions of the rural women micro-entrepreneurs. The indicators were selected based on the literature review and exploratory interview, and in consultation with the experts of the funding agencies (mainly banks) to cover behavioural biases of the rural women micro-entrepreneurs. In order to design the scale, SEM AMOS 26 software along with SPSS 26 was used for data analysis. Reliability score and exploratory factor analysis were conducted with the help of SPSS 26 software. Overconfidence of the rural women micro-entrepreneurs negatively influenced their financial decisions. Rural women micro-entrepreneurs were found to be better financial decision-makers as past loss from their financial decisions did not deter them from taking risk. The loss aversion bias did not influence the financial decisions of the rural women micro-entrepreneur. However, the regret aversion bias and the anchoring bias positively influence their financial decisions, depicting the impact of behavioural biases on their financial decisions. The present study can be further extended to identify the impact of moderating and mediation variables. The impact of other emotional and cognitive behavioural biases on the financial decisions of the rural women micro-entrepreneurs can also be considered. The understanding of impact and the effect of behavioural biases on financial decisions of rural women micro-entrepreneurs will help to identify the rationale behind financial decision-making of the rural women micro-entrepreneurs. Most of rural women micro-entrepreneur has to deal with decisions related to finance. The confidence with which they handle their money is a reflection on how confidently they can handle their business. The present study attempts to design and validate a comprehensive behavioural bias scale influencing financial decisions of the rural women micro-entrepreneurs. To the best of the knowledge of the author, almost no studies have focused adequately to explore the influence of behavioural biases on the financial decisions of women micro-entrepreneurs. Thus, the aim of this research is to understand the influence of behavioural biases on the financial decisions of rural women micro-entrepreneurs and design a robust and comprehensive scale.

The Challenges Faced by Women Micro-entrepreneurs: Evidence from Urban India

The primary purpose of the research is to identify the challenges faced by Indian urban women micro-entrepreneurs in their entrepreneurial journey. The challenges presented by the external environment as well as the deficiencies inherent in their skill sets are analysed to ascertain the most important barriers that continue to impede their growth. Findings indicate that limited funding and balancing responsibilities are the two major challenges faced by women entrepreneurs (WEs); the former being most important for micro-entrepreneurs engaged in manufacturing, while the latter poses the biggest challenge for those engaged in the services sector. Regarding skills, findings indicate that WEs appear to be least skilled in performing finance and information technology-related roles. To the extent that perceived skill gaps and challenges faced are closely related, the findings of this research present an alternative interpretation of the primacy of funding constraints faced by WEs.

Women Micro-Enterprises Performance, Role of Social Capital, Locus of Control and Institutional Support on Entrepreneurial Orientation Nexus. A Conceptual Perspective

This research proposed a framework on the interactive effect of Social Capital, Locus of Control and Institutional Support on the nexus of entrepreneurial orientation (EO) and micro-enterprises performance. As the level of empirical research is lacking on the elements identified in a single study. This study used the uni-dimension of EO encompassing the proactiveness, innovativeness, and the risk-taking proclivity of women micro-enterprises in developing novel jobs towards narrowing the economic disparities of people. The incorporated variables like Social Capital, entrepreneur’s internal locus of control and Institutional Support relate to entrepreneurship as per extant literature. A quantitative research method will be utilised and with the help of the G-Power to establish the acceptable minimum sample size suitable for the study. Data will be obtained via purposive sampling technique and analysis done with the use of the Smart PLS-SEM software. The findings would provide vital value on the significance of the antecedent variables on the perceived financial and non-financial performance indicators of women micro-entrepreneurs. The study will be anchored on the model of strategic entrepreneurship, organisational learning and learning organisation theories stressing how their adoption by women micro-entrepreneurs could enhance optimal sustainable performance. The implications of this findings would be of great significance on women micro-entrepreneurs’ performance, enabling them to compete well in this competitive business environment, evolve to SMEs and large business that will find their presence in the international market. Further, findings would provide direction for educators, policymakers and future research to enhance the optimal sustainable performance of women micro-entrepreneurs and in Malaysia.

Microfinance, an Alternative for Financing Entrepreneurship: Implications and Trends-Bibliometric Analysis

Microfinance has become one of the most important financing alternatives for business start-ups, especially for vulnerable groups in poor regions. Microfinance provides access to financial products, especially to people who have been excluded from the traditional financial system. However, the mainstream literature on microfinance shows its impact on poverty alleviation, but it is not yet well developed to understand its dynamizing role in the entrepreneurial sector. There is still a large gap in the literature on analyzing microfinance as a financing alternative, so this paper seeks to find this relationship in the literature. A bibliometric analysis is applied, both of the performance of the publications and a word co-occurrence analysis during the period 2017–2022. The articles indexed in the Web of Science have been considered and systematized through the SCIMAT software v1.1.04, developed by the Soft Computing and Intelligent Information Systems Research Group, University of Granada, Granada, Spain. Microfinance institutions, education, entrepreneurship, organizational performance, business microcredits, and women microentrepreneurs have been identified as driving themes to be considered in future analyses. At the end of the document, the proposed future lines of research are presented. In addition, the results show the growing interest of the academic community in the topic, with 2022 being the year with the highest number of articles published on the topic.

Loan Default Prediction in Microfinance Group Lending with Machine Learning

Microfinance fintech enables the unbanked and underbanked communities to access credit by offering small, no collateral loans. Microfinance institutions (MFI) usually use credit scoring to filter out risky borrowers. Credit scoring method for individual loans has been widely studied. However, none are for group lending where members are women micro-entrepreneurs in a developing country, and jointly responsible for loan repayment. This research try to build a credit default prediction model for microfinance group lending using machine learning techniques. We examine six different machine learning methods, including XGBoost, logistic regression, linear discriminant analysis (LDA), decision trees, k-nearest neighbour (KNN) and random forest. The XGBoost model performs the best during the first modeling phase. With an accuracy of 0.97 and an AUC score of 0.85, it performs better than other models. Decision tree and random forest give comparable outcomes, with AUCs of 0.81 and 0.80 and accuracies of 0.81, 0.95, and 0.97. In an effort to increase performance, class balancing is performed. The XGBoost model's performance was successfully enhanced, resulting in an increase in AUC from 0.85 to 0.89. Its accuracy stays the same as 0.97. False positive and false negative rates for this model are both low (2.05% and 1.38%, respectively). Consequently, the model has been effectively developed and is capable of differentiating between bad and good loans.

University Partnership Sebagai Akselerator Transformasi Digital Usaha Mikro Perempuan

The partnership built by the university is one of the drivers of efforts to accelerate the digital transformation of women's micro-enterprises. The resources owned by the university can function as social capital to help micro-enterprises owned by women who experience gaps in access to opportunities for transformation, one of which will be the focus of this research is inequality in gaining entry to digital literacy. In this context, research on the role of university partnerships is compelling as an accelerator for inclusively advancing digital literacy for women micro-entrepreneurs in Indonesia, especially in the Tasikmalaya area. We used a qualitative approach conducting In-Depth Interviews with six informants who split up into 4 (four) clusters, specifically 1) University Cluster, 2) The Expert Cluster, 3) Micro-Entrepreneur Cluster, and 4) The Business Incubator Cluster. Our contribution shows that adopting an integrated learning initiative can accelerate the mastery and use of digital skills among female micro-entrepreneurs. This study contributes to understanding how the university partnership model is implemented according to the capacity and business model of women's microenterprises.

Drivers of critical thinking among women micro-entrepreneurs in Ghana

Drivers of critical thinking among women micro-entrepreneurs in Ghana

Drivers of critical thinking among women micro-entrepreneurs in Ghana

Drivers of critical thinking among women micro-entrepreneurs in Ghana

THE EFFECTS OF ISLAMIC MICROFINANCING, HUMAN CAPITAL AND ICT USAGE ON WOMEN MICRO-ENTREPRENEURS’ PERFORMANCE IN MALAYSIA

This study examines the influences of Islamic microfinancing, human capital development, and information and communication technology (ICT) usage on the performance of Malaysian women micro-entrepreneurs funded by an Islamic microfinance institution (IMFI). It considers Amanah Ikhtiar Malaysia (AIM) as the study setting and adopts a quantitative approach involving 120 women micro-entrepreneurs. The questionnaire was distributed to women micro-entrepreneurs in Selangor state employing a convenience sampling method. The model was analysed utilising the partial least squares structural equation model (PLS-SEM). The findings indicate that Islamic microfinancing, human capital, and ICT usage positively influence the performance of women micro-entrepreneurs. The empirical findings enhance the literature by extending the resource-based view (RBV), a soft theory in the organisational theory literature, by incorporating Islamic microfinancing in the context. It is hoped the study will assist IMFIs and governments in strengthening infrastructures, developing comprehensive business strategies, and educating women micro-entrepreneurs about the possibilities of the digital economy for long-term business sustainability and development.

Collective Entrepreneurship for Rural Women Microentrepreneurs: A Capability Approach Perspective

Collective Entrepreneurship models holds paramount importance for economic development, social upliftment, and empowerment of rural women. Operating within socio-economically constraint environment, women microentrepreneurs can promote their interest through collective enterprises. While entrepreneurial literature has prominently focused on the economic output of entrepreneurship, our study aim extends the discussion regarding the role played by collective entrepreneurship in human capabilities development specifically within the context of rural women entrepreneurs. Relying on Sen’s Capability Approach and the Human Development paradigm we have studied a sample of 94 rural women microentrepreneurs involved in cooperative dairy farming sector in India to illustrate the role played by the collective enterprise in facilitating the development of human development imperatives at all three levels namely: individual, family and community. The three indices considered for the human development imperatives are- education and skill development; access to resources and standard of living; and health and well-being.