DRIVING BUSINESS SUCCESS AMONG INFORMAL WOMEN ENTREPRENEURS: THE POWER OF COMPETENCIES, RISK-TAKING, AND PROACTIVENESS
DOI:
https://doi.org/10.35631/IJEMP.935011Keywords:
Entrepreneurial Competencies, Proactiveness, Risk Taking, Sustainable Business Performance, Women's PerformanceAbstract
The informal economy is characterized by economic activities conducted without formal registration with government agencies, thereby evading taxes, labour, and social regulations. The causes of the informal economy are diverse, including a lack of formal employment opportunities, low professional qualifications, limited access to credit, and excessive bureaucracy in formalizing businesses. To manage informal business, understanding the internal factors is the key to success. Accurate analysis can reveal hidden strengths and weaknesses, paving the way to an effective and sustainable strategy. Thus, the purpose of this study is to examine the influence of entrepreneurial competencies on the sustainable business performance of informal women entrepreneurs and to assess the mediating effects of risk-taking and proactiveness on this performance. The method used in this study was a cross-sectional survey of 300 informal women entrepreneurs in Selangor and Kuala Lumpur. A total of 276 respondents were included, and the data were analyzed using multivariate Structural Equation Modeling (SEM). The study findings showed that competencies, risk-taking, and proactiveness had a significant direct influence on the sustainable business performance. Risk-taking and proactiveness were also found to be significant as mediating factors. Business performance is greatly influenced by internal factors that entrepreneurs can control and optimize. By understanding and improving these aspects, entrepreneurs can increase their chances of success.
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