Evaluating Women Entrepreneurs in the Informal Sector: The Effect of Entrepreneurial Competencies on Women Entrepreneurs' Sustainable Performance
DOI:
https://doi.org/10.24191/aej.v11i2.14224Keywords:
Entrepreneurial Competencies, Sustainable Business Performance, Women Entrepreneurs, Informal Economy, Structural ModellingAbstract
Entrepreneurship is a thought-provoking career field. Many women have submitted to entrepreneurship, but not all are successful. Entrepreneurial competencies are a significant component that women entrepreneurs need to own because more capable and effective entrepreneurs can compete more successfully. Hence, this study examines the influence of entrepreneurial competencies (i.e., conceptual and relationship competencies, business and management competencies, entrepreneurial competencies, and human relations competencies) on women entrepreneurs' sustainable performance (i.e., social, economic, and environmental) in the informal economy. This study adopts a survey method using a questionnaire as a research instrument. The sample consists of 384 women entrepreneurs selected using a purposive sampling technique. The data analysis method is structural equation modelling (SEM) to test the effect of entrepreneurial competencies dimensions on business performance. The structured model shows that conceptual and relationship, business and management, entrepreneurial, and human relations competencies significantly predict economic performance. Then, conceptual and relationship, business and management, entrepreneurial, and human relations competencies significantly predict environmental performance. Next, only entrepreneurial and human relations competencies significantly predict social performance. This study is expected to create entrepreneurial ideas, programs, and activities to upsurge entrepreneurial competencies among women entrepreneurs.
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