Bank Financing, Government Support, and SME Performance: The Mediating Role of Entrepreneur Competence

Sudarnice Sudarnice; Nuri Herachwati; Udin Udin

doi:10.18280/ijsdp.181024

Bank Financing, Government Support, and SME Performance: The Mediating Role of Entrepreneur Competence

Sudarnice Sudarnice, Nuri Herachwati, Udin Udin

Research output: Contribution to journal › Article › peer-review

2 Citations (Scopus)

Abstract

Small and medium-sized enterprises (SMEs) must improve their performance to remain competitive in an unstable market, especially during the digital era and the COVID-19 pandemic crisis. This study investigates the influence of bank financing and government support on SME performance, with entrepreneur competence as a mediator. Data were collected from a sample of SMEs through questionnaires distributed to 115 owners and interviews with SME stakeholders. The data were analyzed using factor analysis and principal component analysis, followed by structural equation modeling (SEM) and the Partial Least Square (PLS) program. The results show that bank financing and government support do not directly affect SME performance, but entrepreneur competence mediates the relationship.

Original language	English
Pages (from-to)	3243-3251
Number of pages	9
Journal	International Journal of Sustainable Development and Planning
Volume	18
Issue number	10
DOIs	https://doi.org/10.18280/ijsdp.181024
Publication status	Published - Oct 2023

Keywords

Partial Least Square (PLS)
SME performance
bank financing
entrepreneur competence
government support
structural equation modeling (SEM)

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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AU - Herachwati, Nuri

AU - Udin, Udin

PY - 2023/10

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AB - Small and medium-sized enterprises (SMEs) must improve their performance to remain competitive in an unstable market, especially during the digital era and the COVID-19 pandemic crisis. This study investigates the influence of bank financing and government support on SME performance, with entrepreneur competence as a mediator. Data were collected from a sample of SMEs through questionnaires distributed to 115 owners and interviews with SME stakeholders. The data were analyzed using factor analysis and principal component analysis, followed by structural equation modeling (SEM) and the Partial Least Square (PLS) program. The results show that bank financing and government support do not directly affect SME performance, but entrepreneur competence mediates the relationship.

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KW - SME performance

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KW - entrepreneur competence

KW - government support

KW - structural equation modeling (SEM)

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Bank Financing, Government Support, and SME Performance: The Mediating Role of Entrepreneur Competence

Abstract

Keywords

UN SDGs

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