The Role of Government Financial Support Programmes, Risk-Taking Propensity, and Self-Confidence on Propensity in Business Ventures

Mohd Nor Hakimin Bin Yusoff, Fakhrul Anwar Zainol, Mohammad Ismail, Razman Hafifi Redzuan, Rooshihan Merican Abdul Rahim Merican, Muhammad Ashlyzan Razik and Asyraf Afthanorhan
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Mohd Nor Hakimin Bin Yusoff: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan 16100, Malaysia
Fakhrul Anwar Zainol: Faculty of Business and Management, Universiti Sultan Zainal Abidin (UniSZA), Terengganu 21300, Malaysia
Mohammad Ismail: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan 16100, Malaysia
Razman Hafifi Redzuan: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan 16100, Malaysia
Rooshihan Merican Abdul Rahim Merican: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan 16100, Malaysia
Muhammad Ashlyzan Razik: Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan, Kelantan 16100, Malaysia

Sustainability, 2021, vol. 13, issue 1, 1-16

Abstract: This study identifies the effect of government financial support services (GFSS) on the relationship between two dimensions of psychological factors in business ventures. As such, the study uses small and medium enterprises (SMEs) of various Malaysian sectors as samples, with two constructs used to represent the dimensions of psychological factors, namely, risk-taking (RT) propensity and self-confidence (SC). The study results revealed that both constructs had a significant influence on the propensity to venture into business (PVB). However, GFSS had an insignificant moderating effect on the relationship between the two dimensions and provided input for policy makers to enhance GFSS efficiency in order to positively affect the growth rate of new businesses in Malaysia. Hence, this study bridged the research gap by identifying the influence of GFSS on PVB. As GFSS are an important tool for stimulating growth of the new business venture, the findings of this study have implications for policy makers to improve the quality and effectiveness, especially the delivery of GFSS to the targeted group.

Keywords: government financial support services; risk-taking; self-confidence; SMEs; new venture (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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