Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Hossain, Md. Mosharref; Ibrahim, Yusnidah; Uddin, Mohan

doi:10.1080/08276331.2020.1793097

Cited by 31 publications

(14 citation statements)

References 87 publications

(96 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…PsyCap was found to positively drive BS for which it explains about 23% of the variance. Thus, this research concurs with most of the previous studies [26,31,81,96] that reported a positive effect of PsyCap on business performance across countries and sectors. An improvement of PsyCap by 25% corresponds to about 12% more chance of BS by the youth.…”

Section: Discussionsupporting

confidence: 92%

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

et al. 2021

View full text Add to dashboard Cite

The proponents of the entrepreneurial motivation dichotomy have argued that opportunity-driven entrepreneurs are more likely to succeed and sustain in entrepreneurship, unlike people who start-up businesses out of necessity. However, disagreement still exists on why and under which conditions the former might outperform the latter. This research contributes to this debate by examining the mediation role of psychological capital in the relationship between entrepreneurial motivation and business success among youths. This study relied on a random sample of 295 young entrepreneurs surveyed from Bukavu in the Democratic Republic of the Congo (DRC). We applied partial least squares to analyze the hypothesized relationships. Evidence for the positive effect of opportunity-led motivation on psychological capital was found, but the findings did not support any direct effect of entrepreneurial motivation on business success. Instead, psychological capital positively and significantly mediated the relationship between entrepreneurial motivation and business success. This paper makes a distinctive new contribution to the understanding of the intriguing and controversial entrepreneurial motivation dichotomy—a business success relationship. To this end, we have found out that opportunity entrepreneurs have 3% more chance of succeeding in businesses compared to necessity entrepreneurs, because the former outperform the latter by 4% in the dimensions of psychological capital. This paper has new policy implications, as it reveals the great importance of psychological capital in promoting business success, thus reducing unemployment among youths, and offers tips from which psychological capital can be built or improved.

show abstract

Section: Discussionsupporting

confidence: 92%

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

et al. 2021

View full text Add to dashboard Cite

show abstract

“…Egbo et al (2020) found that women entrepreneurs in Nigeria do not apply for loan from formal institutes mainly because of lack of financial literacy. Hossain et al (2020) mentioned that due to irregularities of government support distributions, even financially literate entrepreneurs are unable to avail adequate finance and thus hinder their financial growth.…”

Section: Financial Literacy and Financial Access Of Msmesmentioning

confidence: 99%

Financial literacy of entrepreneurs: a systematic review

Anshika

Singla

2022

View full text Add to dashboard Cite

Purpose This paper aims to study the level of financial literacy of entrepreneurs across the globe and its role in financial access and performance of micro, small and medium enterprises (MSMEs) based on a systematic review. The present study identifies the measures to enhance the level of financial literacy for increasing financial access and performance of enterprises.Design/methodology/approach Systematic literature review has been undertaken by identifying 358 studies from various sources. After removing the 237 studies based on selection criteria, 67 studies have been found relevant for the present study.Findings The level of financial literacy of entrepreneurs around the world is generally low. It has been found that financial literacy improves performance of an enterprise, particularly when the funds are readily available as insufficient funds disrupt the operating efficiency of the firm, thereby hindering its growth and survival. The other most important factors i.e. access to formal finance, lending policies of financial institutions, ease of doing business and training programmes have a substantial influence on the survival of the firms. The literature also revealed that there is no standardised methodology to measure the financial literacy of entrepreneurs.Research limitations/implications The study conceptualises a research model which can be used by the policymakers to develop training modules for entrepreneurs. These training modules will contribute to the nation’s economic growth by virtue of enhanced performance and superior financial access.Originality/value This study proposes a hypothesised research model which is one of its kinds to demonstrate the influence of financial literacy on financial access and performance of MSMEs.

show abstract

“…The TTU district government must partner with credible Financial Institutions or several Cooperative Institutions. This partnership could eventually take the form of mentoring, training, and education so that MSME players understand financial management following applicable accounting requirements (Hossain, 2020). The People's Business Credit (KUR) assistance program, a banking institution program, is not exclusive but precisely targeted at small-scale MSME community groups.…”

Section: Discussionmentioning

confidence: 99%

Determinants of performance improvement of Micro, Small, and Medium Enterprises (MSME) in the border market of North Timor Central District â€“ Timor Leste

Pangastuti

Nalle

Rado

et al. 2023

JES

View full text Add to dashboard Cite

This study examines the impact of financial literacy, technological innovation, government support, and subjective norms on the performance of Micro, Small, and Medium Enterprises (MSMEs) in the North Central Timor District (TTU)-Timor Leste Border Market. Furthermore, it seeks to identify appropriate strategies for enhancing MSME performance in this region. Both multiple linear regression analysis and descriptive analysis were employed as research methods. The study population included all MSMEs in the TTU District, totaling 693 entities. The researchers employed a purposive sampling technique based on the Slovin formula, selecting 80 respondents as research samples. The findings indicated that technological innovation, government support, and subjective norms significantly affect MSME performance in the TTU-Timor Leste Border Market. To improve the performance of MSMEs, various strategies can be implemented. These encompass the enhancement of financial literacy through training and mentoring programs, adopting e-commerce within the digital economy, and improving human resource quality and product standards. Other strategies include fostering partnerships among institutions, cultivating an investment-friendly bureaucracy, implementing product labeling, establishing legal business associations, and promoting motivation and self-confidence.

show abstract

Finance, financial literacy and small firm financial growth in Bangladesh: the effectiveness of government support

Cited by 31 publications

References 87 publications

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

Entrepreneurial Motivation, Psychological Capital, and Business Success of Young Entrepreneurs in the DRC

Financial literacy of entrepreneurs: a systematic review

Determinants of performance improvement of Micro, Small, and Medium Enterprises (MSME) in the border market of North Timor Central District â€“ Timor Leste

Contact Info

Product

Resources

About