Do Business Model Practices Predict Microenterprise Performance?

Abstract

Microenterprises (MEs) are considered the backbone of the economy and a vital source of job creation, poverty alleviation through business development. In academic research, studies on MEs are relatively less recognized than large, medium, and small-scale enterprises. Indeed, research on MEs is a relatively novel field of study. Low ME performance in Malaysia is due incompatibility of business model practices. The data is collected via survey questionnaires from microenterprises. The 348 microenterprises were targeted. However, only 199 questionnaires were received. Finally, the clean data of 175 were analyzed using the structural equation modeling technique via smart PLS 3.3.3. The findings revealed that business model practices, i.e., product value, customer interface, infrastructure management, and financial aspects, positively impact microenterprise performance. This research provides a comprehensive insight into Malaysian microenterprise owners, and other relevant government regulatory agencies on the role of BMP, business coaching, and microenterprise performance.