WOMEN ENTREPRENEURS’ PERFORMANCE: MICROFINANCE FACTORS WITH MEDIATING EFFECT OF OPPORTUNITY AND MODERATING EFFECT OF ATTITUDE By ISIDORE EKPE Thesis Submitted to the Othman Yeop Abdullah Graduate School of Business, Universiti Utara Malaysia, in Fulfillment of the Requirements for the Degree of Doctor of Philosophy
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WOMEN ENTREPRENEURS’ PERFORMANCE: MICROFINANCE
FACTORS WITH MEDIATING EFFECT OF OPPORTUNITY AND
MODERATING EFFECT OF ATTITUDE
By
ISIDORE EKPE
Thesis Submitted to the Othman Yeop Abdullah
Graduate School of Business, Universiti Utara
Malaysia,
in Fulfillment of the Requirements for the Degree of Doctor of Philosophy
ii
CERTIFICATION OF THESIS WORK
A PEACH (PINK) COLOR FORM
iii
PERMISSION TO USE
In presenting this thesis, in fulfillment of the requirements for a postgraduate degree
from the Universiti Utara Malaysia, I agree that the University Library make it freely
available for inspection. I further agree that permission for copying this thesis in any
manner, in whole or in part, for scholarly purpose may be granted by my supervisors or,
in their absence, by the Dean of Othman Yeop Abdullah Graduate School of Business. It
is understood that any copying or publication or use of this thesis or parts thereof for
financial gain shall not be given to me and to the Universiti Utara Malaysia for any
scholarly use which may be made of any material from my thesis.
Request for permission to copy or make other use of materials in this thesis, in whole or
in part, should be address to:
Dean of Othman Yeop Abdullah
Graduate School of Business
Universiti Utara Malaysia,
06010 UUM Sintok,
Kedah Darul Aman,
Malaysia.
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ABSTRACT
The purpose of this study was to investigate the relationship between micro-finance
related factors (credit, savings, training and social capital) offered by micro-finance
institutions and women entrepreneurs’ business performance with mediating influence of
opportunity for entrepreneurial activity and the moderating influence of attitude towards
micro-finance. However, the hypotheses were restated to reflect the component factors
that resulted from the Exploratory Factor Analysis. For example, loan access represented
credit, skill acquisition represented traininig, bonding represented social capital,
opportunity for business improvement represented opportunity for entrepreneurial
activity, ability to expand business and self-confidence in doing business represented
attitude towards micro-finance, and women entrepreneurs’ sales performance
represented women entrepreneurs’ business performance. A total of 280 women
entrepreneurs participated in the survey through mail questionnaire; out of which 172
questionnaires were usable. However, after data cleaning, only data for 161 respondents
were finally used for the data analysis. Descriptive statistics, multiple, linear and
hierarchical regression analyses were used for data analysis and hypotheses testing. The
study found that there were significant positive relationships between: loan access, skill
acquisition and bonding; and women entrepreneurs’ sales performance which met
Research Objective 1; skill acquisition and women entrepreneurs’ sales performance
which met Research Objective 2; loan access and opportunity for business improvement
of women entrepreneurs, skill acquisition and opportunity for business improvement of
women entrepreneurs which met Research Objective 3; opportunity for business
improvement and women entrepreneurs’ sales performance which met Research
Objective 4; opportunity for business improvement of women entrepreneurs partially
mediated the relationship between loan access, skill acquisition and bonding; and
women entrepreneurs’ sales performance since only skill acquisition was significant
which met Research Objective 5; ability to expand business partially moderated the
relationship between loan access, skill acquisition, bonding and opportunity; and women
entrepreneurs’ sales performance which met Research Objective 6. The study concludes
that micro-finance factors are positively related to women entrepreneurs’ business
performance as the models were, collectively, significant.
Keywords: Microfinance, women entrepreneurs’ business performance.
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ABSTRAK
Tujuan kajian ini adalah untuk mengkaji hubungan antara faktor-faktor yang berkaitan
dengan kewangan mikro (kredit, simpanan, latihan dan modal sosial) yang ditawarkan
oleh institusi mikro kewangan dan prestasi perniagaan usahawan wanita dengan
pengaruh pengantara peluang untuk aktiviti keusahawanan dan pengaruh penyederhana
iaitu sikap terhadap faktor-faktor mikro kewangan. Walau bagaimanapun, hipotesis telah
dinyatakan semula untuk menggambarkan faktor komponen yang berlaku akibat
daripada Analisis Faktor Tinjauan. Sebagai contoh, akses kepada pinjaman mewakili
kredit, pemerolehan kemahiran mewakili latihan, ikatan mewakili modal social, peluang
untuk peningkatan perniagaan mewakili peluang untuk aktiviti keusahawanan,
keupayaan untuk mengembangkan perniagaan dan keyakinan diri dalam menjalankan
perniagaan mewakili sikap terhadap faktor-faktor mikro kewangan, dan prestasi jualan
usahawan wanita mewakili prestasi perniagaan usahawan wanita. Seramai 280 usahawan
wanita mengambil bahagian dalam kaji selidik melalui soal selidik mel. Daripada jumlah
ini, hanya 172 soal selidik yang boleh digunakan.Walau bagaimanapun, selepas
pembersihan data, hanya 161 responden yang akhirnya digunakan untuk analisis data
seterusnya. Statistik deskriptif, analisis regresi berganda, linear dan hierarki digunakan
untuk analisis data dan pengujian hipotesis. Kajian mendapati bahawa terdapat
hubungan positif yang signifikan antara: akses pinjaman, pemerolehan kemahiran dan
ikatan; dan prestasi perniagaan memenuhi Objektif Penyelidikan 1; pemerolehan
kemahiran dan prestasi perniagaan usahawan wanita memenuhi Objektif Penyelidikan 2;
akses kepada pinjaman dan peluang untuk peningkatan perniagaan usahawan wanita,
pemerolehan kemahiran dan peluang untuk peningkatan perniagaan usahawan wanita
memenuhi Objektif Penyelidikan 3; peluang untuk peningkatan perniagaan dan prestasi
jualan usahawan wanita memenuhi Objektif Penyelidikan 4; peluang untuk peningkatan
perniagaan usahawan wanita bertindak sebagai pembolehubah pengantara sebahagian
(partial mediator) dalam perhubungan di antara akses kepada pinjaman, pemerolehan
kemahiran dan ikatan; dan prestasi jualan usahawan wanita dan memenuhi Objektif
Penyelidikan 5; keupayaan untuk mengembangkan perniagaan bertindak sebagai
pembolehubah penyederhana sebahagian dalam hubungan antara akses pinjaman,
pemerolehan kemahiran, ikatan dan peluang; dan prestasi jualan usahawan wanita dan
memenuhi Objektif Penyelidikan 6. Kajian telah menunjukkan bahawa faktor-faktor
kewangan mikro adalah secara positif berkaitan dengan prestasi perniagaan usahawan
wanita dimana model secara kolektif adalah signifikan.
Kata kunci: Mikro-kewangan, prestasi perniagaan usahawan wanita.
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ACKNOWLEDGEMENT
I wish to express my profound gratitude to God for his wisdom, guidance and other help
that I received in this thesis work. My special thanks go to my supervisors: Dr. Norsiah
Bt Mat and Professor Madya Razli Bn Che Razak for their expertise, cooperation and
patience in guiding me to complete this thesis, without which I would not have been able
to complete it on time. I also thank my wife: Mrs. Margaret Isidore Ekpe, for her
supports, sacrifices and care for the family during the period of this study.
My appreciation also goes to the Dean of the College of Business: Professor Noor Azizi
Ismail for his moral supports, and to all the academic and non academic staff members
of the College of Business, especially Professor Yusnidah Ibrahim, Dr. Faridahwati
Mohd Shamsudin and Dr. Chandrakantan Subramaniam for their moral supports and
expert contributions to my work especially during official presentations.
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TABLE OF CONTENTS Pages
PERMISSION TO USE iii
ABSTRACT iv
ABSTRAK v
ACKNOWLEDGEMENT vi
TABLE OF CONTENT vii
LIST OF TABLES xi
LIST OF FIGURES xiii
LIST OF ABBREVIATIONS xiv
CHAPTER 1: INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 7
1.3 Research Questions 13
1.4 Research Objectives 15
1.5 Significance of the Study 16
1.6 Scope of the Study 19
1.6.1 Assumptions of the Study 21
1.6.2 Definition of Terms 21
1.7 Organization of the Thesis 22
CHAPTER 2: ENTREPRENEURSHIP DEVELOPMENT PROGRAMS
IN NIGERIA 23
2.0 Overview of the Chapter 23
2.1 Nigeria’s Previous Programs on Entrepreneurship Development 23
2.2 A Critique of Nigeria’s Previous Entrepreneurship Development
Programs 25
2.3 The National Directorate of Employment (NDE) and Entrepreneurship
Development in Nigeria 27
2.4 The National Poverty Eradication Program (NAPEP) and
Entrepreneurship Development in Nigeria 29
2.5 Current Micro-finance Policy of Nigeria 30
2.5.1 Policy Objectives 31
2.5.2 Policy Targets 31
2.5.3 Policy Strategies 32
2.5.4 Policy Measures for establishing Micro-finance Banks 33
2.6 Chapter Summary 34
CHAPTER 3: LITERATURE REVIEW 35
3.0 Overview of the Chapter 35
3.1 Definition of Micro-finance, Entrepreneur and
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Entrepreneurs’ business Performance 35
3.2 Explanations on Micro-finance factors, Women Entrepreneurs and their
relationships with Women Entrepreneurs’ Business Performance 37
3.3 Private Micro-finance Institutions in Nigeria 40
3.4 Characteristics of Women Entrepreneurs that affect Performance 43
3.5 Studies on Micro-finance Factors and Women Entrepreneurs’
Business Performance 45
3.5.1 Credit and Women Entrepreneurs’ Business Performance 46
3.5.2 Savings and Women Entrepreneurs’ Business Performance 47
3.5.3 Training and Women Entrepreneurs’ Business Performance 48
3.5.4 Social Capital and Women Entrepreneurs’ Business Performance 51
3.5.5 Controlled Variables 53
3.6 Studies on Opportunity for entrepreneurial activity and Women
Entrepreneurs’ Business Performance: The Mediated Variable 55
3.7 Studies on Attitude towards Micro-finance: The Moderated Variable 58
3.8 Studies on Women Entrepreneurs’ Business Performance 62
3.9 Previous studies on Women Entrepreneurs in other Countries 63
3.10 Previous studies on Women Entrepreneurs in Nigeria 71
3.11 Related Researchers’ Models (Specific Review) 78
3.12 Research Gap 84
3.13 Underpinning Theory 86
3.13.1 Shane (2003)’ Model of Entrepreneurial Process 86
3.13.2 The Entrepreneurship Theory (SchumPeter, 1942) 90
3.13.3 The Theory of Planned Behavior (Ajzen, 1991) 92
3.14 Research (Conceptual) Framework 92
3.15 Hypotheses Development 93
3.16 Chapter Summary 99
CHAPTER 4: METHODOLOGY 101
4.0 Overview of the Chapter 101
4.1 Research Design 101
4.2 Operational Definitions of Constructs /Variables 102
4.2.1 Procedure for Testing the Mediated and Moderated Variables 105
4.3 Measurement of Variables (Instrumentation) 108