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

Sudarnice Sudarnice, Nuri Herachwati, Udin Udin

Research output: Contribution to journalArticlepeer-review

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 languageEnglish
Pages (from-to)3243-3251
Number of pages9
JournalInternational Journal of Sustainable Development and Planning
Volume18
Issue number10
DOIs
Publication statusPublished - Oct 2023

Keywords

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

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