Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia
Abstract
:1. Introduction
2. Literature Review and Hypothesis Development
2.1. Entrepreneur Competence and SMEs Performance
2.2. Access to Infrastructure and SME Performance
2.3. The Effect of Entrepreneur Training and SME’s Performance
2.4. Access to Micro Finance and SMEs Performance
2.5. The Mediation Role of Government Support and SME’s Performance
2.6. Conceptual Model of the Study
3. Research Methodology
3.1. Research Design
3.2. Sample and Data Collection
3.3. Model Specification
3.4. Measurements of Variables
4. Results and Interpretations
4.1. Demographic Data Analysis
4.2. Reliability and Validity Statistics Analysis
4.3. Analysis of Multiple Regressions
4.4. Structural Equation Model Estimate
4.5. Results of the Structural Model Goodness-of-Fit and Path Modeling Analysis
4.6. The Mediator Variable’s Direct, Indirect, and Total Effects
4.7. Mediating Effects of Government Support
4.8. Test of Hypothesis Results Analysis
5. Conclusions and Recommendations
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Acknowledgments
Conflicts of Interest
References
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List of Variables | Indicator Items | References |
---|---|---|
Enterprise Performance (EP) | Employment growth SMEs sales growth SMEs capital growth Profit growth Managerial performance growth Competitive capability | [54,94,101,102,103,104,105,106] |
Entrepreneur Competence (EC) | Personal relationship competency Business and management skill competency Entrepreneurial and human relations competency Market competitive competency Financial skill competency Innovative and entrepreneur competency | [35,51,52] |
Access Infrastructure (IF) | Access to market facility technology Access and fulfill related to infrastructure facilities Access training workshop facility Access land for working and selling place Access road Access water | [34,39,63] |
Entrepreneur Training (ET) | Entrepreneur training consistency Entrepreneur training effectiveness Entrepreneur training quality Entrepreneur Training redundancy Entrepreneur Training competency | [54,64,107] |
Access Finance (MF) | Time duration of the loan (long term loan Loan Adequacy for entrepreneur Microfinance loan cost and Influence of interest rate Lease machine accessibility | [54,94] |
Government Support (GS) | Facilitating to access electricity Facilitating working and selling place Facilitating ICT infrastructure Issued supportive policy Facilitating financial support Facilitating training | [35,86,87] |
EP | EC | MF | IF | ET | GS | ||
---|---|---|---|---|---|---|---|
EP | Pearson Correlation | 0.954 | |||||
Sig. (2-tailed) | |||||||
N | 384 | ||||||
EC | Pearson Correlation | 0.656 ** | 0.889 | ||||
Sig. (2-tailed) | 0.000 | ||||||
N | 384 | 384 | |||||
MF | Pearson Correlation | 0.844 ** | 0.837 ** | 0.880 | |||
Sig. (2-tailed) | 0.000 | 0.000 | |||||
N | 384 | 384 | 384 | ||||
IF | Pearson Correlation | 0.635 ** | 0.845 ** | 0.785 ** | 0.964 | ||
Sig. (2-tailed) | 0.000 | 0.000 | 0.000 | ||||
N | 384 | 384 | 384 | 384 | |||
ET | Pearson Correlation | 0.859 ** | 0.689 ** | 0.801 ** | 0.687 ** | 0.884 | |
Sig. (2-tailed) | 0.000 | 0.000 | 0.000 | 0.000 | |||
N | 384 | 384 | 384 | 384 | 384 | ||
GS | Pearson Correlation | 0.835 ** | 0.766 ** | 0.826 ** | 0.855 ** | 0.883 ** | 0.961 |
Sig. (2-tailed) | 0.033 | 0.000 | 0.000 | 0.000 | 0.000 | ||
Pearson Correlation | 384 | 384 | 384 | 384 | 384 | 384 |
Measuring Items | Path | Estimation (β) | Standard Error | Composite Reliability | Sig | |
---|---|---|---|---|---|---|
EP | ← | EC | 0.950 | 0.065 | 4.564 | 0.000 |
EP | ← | MF | 0.961 | 0.056 | 2.526 | 0.000 |
EP | ← | IF | 0.701 | 0.057 | 2.944 | 0.000 |
EP | ← | ET | 0.711 | 0.051 | 2.588 | 0.000 |
EP | ← | GS | 0.971 | 0.063 | 3.508 | 0.033 |
GS | ← | EC | 0.960 | 0.057 | 2.734 | 0.000 |
GS | ← | MF | 0.841 | 0.048 | 3.054 | 0.000 |
Model Fit Indices | Criteria | Standard Measured Model |
---|---|---|
Chi-square (χ2) | Low | 319.83 |
Degree of freedom | >0.0 | 183 |
χ2/df | <3.0 | 1.780 |
Goodness-of-fit index (GFI) | ≥0.90 | 0.952 |
Adjusted Goodness of Fit (AGFI) | ≥0.90 | 0.937 |
Normed fit index (NFI) | >0.90 | 0.926 |
Incremental fit index (IFI) | >0.90 | 0.972 |
Tuker-Lewis Index (TLI) | ≥0.90 | 0.928 |
Comparative Fit Index (CFI) | ≥0.90 | 0.982 |
Root Mean Square Error of Approximation (RMSEA) | <0.08 | 0.043 |
Path | Micro Finance (MF) | Enterprise Performance (EP) | Effects of Mediation | |||
---|---|---|---|---|---|---|
Direct Effects | Indirect Effects | Total Effects | Direct Effects | Indirect Effects | ||
EC | 0.858 | 0.000 | 0.858 | 0.144 | 0.688 | 0.832 |
MF | 0.950 | 0.000 | 0.950 | 0.042 | 0.880 | 0.921 |
IF | 0.859 | 0.000 | 0.859 | 0.145 | 0.684 | 0.834 |
ET | 0.834 | 0.000 | 0.834 | 0.168 | 0.909 | 0.977 |
GS | 0.000 | 0.000 | 0.000 | 0.970 | 0.000 | 0.970 |
Mediator (Path) | Coefficient | Standard Error | Sobel Test z-Value | LL95%CI | UL95%CI |
---|---|---|---|---|---|
EC → GS → EP | 0.960 0.971 | 0.055 0.083 | 9.71791357 | 0.348 | 0.544 |
MF → GS → EP | 0.841 0.971 | 0.068 0.083 | 8.49891857 | 0.272 | 0.392 |
IF → GS → EP | 0.861 0.971 | 0.059 0.083 | 9.12783006 | 0.195 | 0.225 |
ET → GS → EP | 0.831 0.971 | 0.079 0.083 | 7.82200163 | 0.214 | 0.357 |
Hypothesis | Direction and Structural Path | Path Coefficient | p-Value | Inference |
---|---|---|---|---|
H1 | EC → EP | 0.950 ** | 0.000 | Supported |
H2 | IF → EP | 0.701 ** | 0.000 | Supported |
H3 | ET → EP | 0.711 ** | 0.000 | Supported |
H4 | MF → EP | 0.961 ** | 0.000 | Supported |
H5 | GS → EP | 0.971 ** | 0.033 | Supported |
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Zhang, Y.; Ayele, E.Y. Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia. Sustainability 2022, 14, 6846. https://doi.org/10.3390/su14116846
Zhang Y, Ayele EY. Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia. Sustainability. 2022; 14(11):6846. https://doi.org/10.3390/su14116846
Chicago/Turabian StyleZhang, Youtang, and Eshetu Yesuf Ayele. 2022. "Factors Affecting Small and Micro Enterprise Performance with the Mediating Effect of Government Support: Evidence from the Amhara Region Ethiopia" Sustainability 14, no. 11: 6846. https://doi.org/10.3390/su14116846