THE MODEL FOR IMPROVING BUSINESS PERFORMANCE USING MICROFINANCIAL INSTITUTIONS AND ENTREPRENEURSHIP COMPETENCIES

Erna Herlinawati; Riyandi Nur Sumawidjaja; Yoyo Sudaryo; Rama Chandra Jaya; Gurawan Dayona Ismail

doi:10.24198/sosiohumaniora.v25i1.44707

THE MODEL FOR IMPROVING BUSINESS PERFORMANCE USING MICROFINANCIAL INSTITUTIONS AND ENTREPRENEURSHIP COMPETENCIES

Erna Herlinawati, Riyandi Nur Sumawidjaja, Yoyo Sudaryo, Rama Chandra Jaya, Gurawan Dayona Ismail

Abstract

This paper will assess & present empirical evidence on the issue in order to better understand how Microfinance Institutions (MFIs) mediate entrepreneurial talents. The role of MFIs is evaluated based on their functions as a source of finance, facilitators for financial management, managerial management, and marketing management. Sales growth, profit growth, asset growth, employee growth, and market share growth are all ways to gauge a company’s performance. While entrepreneurial ability is assessed using technical, marketing, financial, and interpersonal abilities. The research approach is explanatory, with data collected through questionnaires and interviews. A sample of 150 SMEs sampled the population of 34,816 SMEs in West Java’s Greater Bandung region, Indonesia, using a proportionate random sampling approach. Structural Equation Modeling and a 5-point Likert scale were used to analyze the data collected (SEM). According to the findings, microfinance institutions can help businesses succeed by a small but significant amount. Business performance is positively and significantly impacted by entrepreneurial talents. The MFIS’s significance in influencing entrepreneurial skills expands in relation to corporate performance.

Keywords

Business Performance; Microfinance Institutions; Entrepreneurial Competencies

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DOI: https://doi.org/10.24198/sosiohumaniora.v25i1.44707