Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: Human Capital and Entrepreneurial Competencies towards Performance of Informal Microenterprises in Kelantan, Malaysia
Issue: Vol. 11, No 4, 2018
Published date: 12-2018 (print) / 12-2018 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Noor Raihani Zainol
Universiti Malaysia Kelantan

Abdullah Al Mamun
Universiti Malaysia Kelantan

Ghazali Bin Ahmad
Universiti Malaysia Kelantan

Derweanna Bah Simpong
Universiti Malaysia Kelantan
Keywords: informal microenterprise, human capital, entrepreneurial competencies, performance, women entrepreneurship
DOI: 10.14254/2071-789X.2018/11-4/2
Index PUBMS: 3d143fa6-18de-11e9-82eb-fa163e6feac6
Language: English
Pages: 31-50 (20)
JEL classification: J24, O17
This research was funded by the Ministry of Higher Education, Malaysia under the grant entitled “Research Acculturation Grant Scheme – RAGS” (Grant Code: RAGS/1/2014/SS05 /UMK//4), Topic: Entrepreneurial Competency among Women Informal Traders: A Study in Peninsular Malaysia).

Microenterprise is essential for strengthening the economies in developing countries through job creation, skills’ development, self-esteem, and knowledge. This study intended to measure the effect of human capital on entrepreneurial competencies and the effect of entrepreneurial competencies on the performance of informal microenterprises owned and managed by women-microentrepreneurs in Kelantan, Malaysia. This study has employed a cross-sectional design and collected quantitative data from 384 informal women-entrepreneurs in Kelantan, Malaysia. The result indicated that human capital and entrepreneurial competencies had a significant positive effect on women microenterprises’ performance. Despite the increase in the number of research in this subsector, little attention has been given to the effect of human capital and entrepreneurial competencies on business performance in Malaysia. Therefore, this study aims to examine human capital, entrepreneurial competencies, and business performance among informal microenterprises owned and managed by women in Kelantan, Malaysia. Given that investments in human capital and entrepreneurial competencies improve the performance of informal microenterprises, the government and development organizations should, therefore, focus on entrepreneurship development programs, so that to improve the entrepreneurial competencies among women microentrepreneurs in Kelantan, Malaysia.


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