Effect of economic vulnerability on entrepreneurial competencies among Malaysian micro-entrepreneurs

Abstract

Purpose This study aims to investigate the impact of economic vulnerability upon entrepreneurial competencies (i.e. commitment competency, conceptual competency, opportunity recognition competency, organizing competency, relationship competency and strategic competency) among respondents from varied development initiatives established by the eKasih program (National Poverty Data Bank) in Peninsular Malaysia. Design/methodology/approach Upon adopting the cross-sectional design, data were randomly gathered from selected 300 micro-entrepreneurs from the list of development organizations available in the eKasih (National Poverty Data Bank), located at four states in Peninsular Malaysia. The quantitative data were gathered by performing structured interview sessions from September until November 2017. Findings The outcomes of the study displayed that economic vulnerability has a significantly negative effect upon commitment, opportunity recognition, organizing and strategic competency. On the other hand, the results showcased that economi c vulnerability has a significantly positive effect on competency, but insignificantly positive impact upon conceptual competency. Originality/value These study outcomes appear to extend the scope of the resource-based view, apart from enriching the existing entrepreneurial competency literature, particularly within the Malaysian context. Hence, it is recommended that the government of Malaysia and development organizations should focus on maximizing the level of competency among micro-entrepreneurs as a viable approach to decrease the effect of economic vulnerability.