Combination of Microcredit and Micro-Training with Mediating Role of Formal Education: A Micro-Enterprise Success Formula

  • Waseem Ul Hameed PhD Scholar, School of Economics, Finance & Banking, Universiti Utara Malaysia
  • Tanveer Hussin PhD Scholar, School of Economics, Finance & Banking, Universiti Utara Malaysia
  • Muhammad Azeem PhD scholar, School of Business Management, Universiti Utara Malaysia
  • Muhammad Arif MPhil scholar, National College of Business Administration & Economics (NCBA&E), Bahawalpur, Pakistan
  • Muhammad Farhan Basheer PhD Scholar, School of Economics, Finance & Banking, Universiti Utara Malaysia
Keywords: Micro Enterprises, Microcredit, microfinance, education, micro training


Purpose: The purpose of this study is to develop a distinctive formula (framework) for micro-enterprise success. As the success of micro-enterprise is under debate from many decades, however, the researchers and entrepreneurs are unable to find the unique factor to develop a comprehensive framework.

Design/Methodology/Approach: The current study is based on conceptual framework. Prior studies are used to develop the framework and hypothesis. Moreover, conclusion is based on literature review.

Findings: It is investigated that, microfinance factors (i.e., micro-credit and micro-training) has a positive relationship with micro-enterprise success. However, among all other microfinance factors (i.e., micro-saving, micro-insurance, social capital), micro-credit and micro-training have relatively higher effect on microenterprise performance followed by a level of education. Moreover, it is found that education mediates the relation between microfinance factors and micro-enterprise success.

Implications/Originality/Value: This study contributed to the body of knowledge by developing a micro-enterprise success formula for researchers and entrepreneurs, which ultimately improve the performance of micro-enterprises. Hence, the current study is beneficial for microfinance institutions and other practitioners to enhance micro-enterprise success.


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How to Cite
Hameed, W. U., Hussin, T., Azeem, M., Arif, M., & Basheer, M. F. (2017). Combination of Microcredit and Micro-Training with Mediating Role of Formal Education: A Micro-Enterprise Success Formula. Journal of Business and Social Review in Emerging Economies, 3(2), 285-291.