The effect of entrepreneurial attitude orientation and non-financial assistance towards micro business performance / Deewasnari Muddat

This study examines the impact of entrepreneurial attitude orientation (EAO) dimensions on micro-business performance in Sabah, Malaysia, and the moderating effect of the government non-financial assistance. The EAO dimensions assessed in this study consist of innovation, personal control, self-esteem, achievement, entrepreneurial risk willingness, and opportunity recognition. The questionnaires were distributed to micro-business owners or directors under TEKUN Nasional in Sabah using the purposive sampling method. The respondents were selected because TEKUN Nasional is the most prominent government micro-credit financing agency, assisting Bumiputera entrepreneurs in their entrepreneurial development. Through the 5th thrust of the National Entrepreneurship Policy 2030 strategies, TEKUN Nasional expects to improve the capacity and performance of Bumiputera micro-businesses in Malaysia, including Sabah. A survey using structured questionnaires based on a 7-point Likert scale scoring was distributed to six hundred (600) respondents. However, of the 525 questionnaires returned, only 435 questionnaires were usable for further analysis. Data collected were analysed using the PLS-SEM technique through the SmartPLS version 3.3.2 software. The results revealed that self-esteem, opportunity recognition, and non-financial assistance positively affect micro-business performance. Meanwhile, government non-financial assistance positively moderates the relationship between opportunity recognition (EAO) and micro-business performance. This study's findings add to the body of knowledge and provide insights into how micro business owners should enhance their self-esteem and opportunity recognition to perform better. Evidence suggests that government non-financial assistance is among the most critical factors determining how micro-business performance would contribute significantly to achieving the National Entrepreneurship Policy2030 vision and mission. Future studies are suggested to apply mixed methods to explore their research problems. This study contribution assists business players, such as entrepreneurs, micro-business owners, government agencies, policymakers, and stakeholders, in understanding the critical role of individual self-esteem in recognising business opportunities. Government non-financial assistance is also critical in boosting Malaysia’s micro-businesses performance. This study, which involved TEKUN Nasional, was the first of its kind in Sabah; hence, revitalising and driving the growth of micro and small businesses. The findings would also sharpen the TEKUN Nasional's policy and strategy formulation for reinforcing Malaysia's existing micro-enterprise business sector that serves as the country's economic growth engine. Future research should also consider working with other micro-business establishments, such as AIM, YUS, MARA, TERAJU, and other micro-credit providers, to revamp the Malaysian micro-business landscape, particularly in Sabah.