Access to microfinance as potential mediator on the relationship between microfinance awareness and entrepreneurial self-efficacy on SME performance in Nigeria: An empirical study

• Main Authors: Shamudeen, Kabir, Ooi, Yeng Keat, Hassan, Hazlinda
• Format: Conference or Workshop Item
• Language: English
• Published: 2015
• Subjects: HB Economic Theory
• Online Access: http://repo.uum.edu.my/17087/1/ent7.pdf; http://repo.uum.edu.my/17087/

The purpose of the study is to examine the mediating effect of access to microfinance on the relationship between microfinance awareness, entrepreneurial self-efficacy and SMEs performance in North-Western Nigeria. Several factors have been suggested in previous studies that have been influencing the SMEs performance such as entrepreneurial orientation, dynamic capabilities, market orientation, total quality management, organizational learning, and others.Despite these studies, only few have attempted to consider the influence of microfinance awareness and entrepreneurial self-efficacy on SMEs performance. Even if any, the mechanisms that explain why there is existent relationship has not been sufficiently addressed in the extant literature.Based on the theoretical consideration, access to microfinance as mediating variable has been suggested. A quantitative survey method was used which data were collected from the owner/managers of SMEs in Sokoto State of North-Western Nigeria. From the total of 100 questionnaires distributed, 74 usable questionnaires were returned. Partial Least Squares (PLS) was used for the data analysis. Based on the statistical findings, microfinance awareness and entrepreneurial self-efficacy were significantly related to SMEs performance.Access to microfinance was found to mediate the relationship between microfinance awareness and SMEs performance and also between entrepreneurial self-efficacy and SMEs performance.Future research also suggested in this study.