Microcredit assistance, financial literacy, & women entrepreneurs' microbusiness performance: Empirical evidence from Malaysia
DOI:
https://doi.org/10.55573/JISED.118785Keywords:
Microcredit, Financial Literacy, Microbusiness, Women EntrepreneursAbstract
For many small business owners, access to capital can be a catalyst for change, no matter how small. It allows them to expand operations, stabilize cash flow, or seize new opportunities. As a key tool in economic empowerment, microcredit has great potential to bridge the financial access gap and support Malaysia’s rapidly growing SME ecosystem. Therefore, this study was conducted to identify the influence of microcredit assistance that drives the success of microcredit entrepreneurs in the Klang Valley. Second is to assess the moderating effect of financial literacy (i.e., savings, debts, investment, and insurance literacy). The study sample was selected using stratified random sampling, involving 244 micro women entrepreneurs. The instrument used was a questionnaire, and the data were analyzed using descriptive statistics and a Structural Equation Model (SEM). The study found that microcredit assistance was significantly associated with the performance of women entrepreneurs' micro businesses. Second, the findings reveal that savings and debt literacy significantly moderate the relationships between microcredit assistance and business performance. On the other hand, investment and insurance literacies do not moderate the proposed relationships. Thus, the government and relevant agencies need to improve literacy programs and workshops for entrepreneurs to enhance their existing quality and skills further.
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