Noor Raihani Zainol,

Universiti Malaysia Kelantan, Kota Bharu, Malaysia

E-mail: raihani@umk.edu.my

Human Capital and Entrepreneurial Competencies towards Performance of Informal Microenterprises in Kelantan, Malaysia

Abdullah Al Mamun,

Universiti Malaysia Kelantan, Kota Bharu, Malaysia

Email: abdullah.a@umk.edu.my

Ghazali Bin Ahmad,

Universiti Malaysia Kelantan, Kota Bharu, Malaysia

Email: ghazali@umk.edu.my

Derweanna Bah Simpong,

Universiti Malaysia Kelantan, Kota Bharu, Malaysia

Email: derweanna@umk.edu.my 

Abstract. Microenterprise is essential for strengthening the economies in developing countries through job creation, skills’ development, self-esteem, and knowledge. This study intended to measure the effect of human capital on entrepreneurial competencies and the effect of entrepreneurial competencies on the performance of informal microenterprises owned and managed by women-microentrepreneurs in Kelantan, Malaysia. This study has employed a cross-sectional design and collected quantitative data from 384 informal women-entrepreneurs in Kelantan, Malaysia. The result indicated that human capital and entrepreneurial competencies had a significant positive effect on women microenterprises’ performance. Despite the increase in the number of research in this subsector, little attention has been given to the effect of human capital and entrepreneurial competencies on business performance in Malaysia. Therefore, this study aims to examine human capital, entrepreneurial competencies, and business performance among informal microenterprises owned and managed by women in Kelantan, Malaysia. Given that investments in human capital and entrepreneurial competencies improve the performance of informal microenterprises, the government and development organizations should, therefore, focus on entrepreneurship development programs, so that to improve the entrepreneurial competencies among women microentrepreneurs in Kelantan, Malaysia.

Received: May, 2018

1st Revision: July, 2018

Accepted: September, 2018

DOI: 10.14254/2071-789X.2018/11-4/2

JEL Classification: J24, O17

Keywords: informal microenterprise, human capital, entrepreneurial competencies, performance, women entrepreneurship