Abstract

In Malaysia, women dominate many sectors particularly those related to small business sectors. It is crucial to realize that participation of women entrepreneurs through the informal economy can support the development of their family. The development of women entrepreneurship is crucial for creating a vibrant and dynamic economy in Malaysia. The objective of this study is to determine the moderating effect of a supportive environment toward the relationship of entrepreneurial competencies and the performance of informal enterprises owned and managed by women micro-entrepreneurs in Kelantan, Malaysia. This study adopted a cross-sectional design and a purposive random sampling method using quantitative data from 384 informal women micro-entrepreneurs in Kelantan, Malaysia. The sampling frame was based on an informal sector’s workforce survey report, Malaysia-2013. Based on the report, the total number of population of informal women micro-entrepreneurs in Kelantan is 534 000. The informal women entrepreneurs were drawn from six districts in Kelantan, Malaysia, which are Kota Bharu, Tanah Merah, Pasir Puteh, Tumpat, Machang, and Ketereh. Findings of this study revealed that opportunity recognition competencies, relationship competencies, and commitment competencies have a positive and significant effect on the performance of informal microenterprises owned and managed by women entrepreneurs in Kelantan, Malaysia. Findings also reported a significant moderating effect of a supportive environment on the commitment competency and the performance of informal microenterprises. To improve the socio-economic condition of the low-income informal women micro-entrepreneurs and their households, development programs and policies should therefore focus on improving informal entrepreneurs’ capacity to recognize and take advantage of new income generating opportunities. As for the informal women micro-entrepreneurs, it is crucial to recognize their significant positive role, and therefore accumulate relational and commitment competencies to improve the performance of their informal microenterprises.

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