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Entrepreneurial index for low-income households in Malaysia

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  • Al Mamun, Abdullah
  • Thurasamy, Ramayah
  • Fazal, Syed Ali

Abstract

Even though development organizations provide access to working capital and enterprise development training, they often fail to improve the socio-economic condition of low-income households. One of the factors contributing to the failure of development programs is their lack of capacity to measure the entrepreneurial potentials among the low-income participants. This study focused on the development of an entrepreneurial index that measures the entrepreneurial potentials among low-income households. Adopting a cross-sectional design, a total of 403 micro-entrepreneurs were approached from the list provided by ‘Majlis Amanah Rakyat’ and ‘Majlis Agama Islam Dan Adat Istiadat’, Kelantan. This study used formative hierarchial model to determine the local and global weights for all the items used to develop the index. Further, the nomological validity revealed a positive effect of entrepreneurial index on entrepreneurial competency, enterprise performance, and enterprise sustainability.

Suggested Citation

  • Al Mamun, Abdullah & Thurasamy, Ramayah & Fazal, Syed Ali, 2021. "Entrepreneurial index for low-income households in Malaysia," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    • Handle: RePEc:eee:soceps:v:77:y:2021:i:c:s0038012121000057
    DOI: 10.1016/j.seps.2021.101013
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