Determinants of Business Resilience Framework for Small Businesses:Moderating Effects of Financial Literacy

Lestari, Elissa Dwi (2023) Determinants of Business Resilience Framework for Small Businesses:Moderating Effects of Financial Literacy. Review of Economics and Finance,. (Submitted)

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Abstract

Covid-19 has significantly disrupted and devastated the world's economy. Data from Malaysia shows that more than 30,000 companies have closed their operations since the movement control order (MCO) implementation due to Covid-19 that began in March 2020. However, the effects on small businesses are especially severe, mainly due to the higher vulnerability levels and lower resilience related to their size. This study provides an empirical anal- ysis of the key drivers leading to the business resilience of small businesses in Malaysia that have survived the Covid-19 pandemic. Data from 215 small businesses were collected physically and online across Malaysia from May 2021 to December 2021. Structural Equation Modeling (SEM) using Smart PLS 3.2.4 was used to analyse the data, whereby nine hypotheses were tested in the current study. The results showed that technology acceptance, gov- ernment support, and financial literacy significantly influence business resilience among small businesses in Malay- sia. The results also indicated that financial literacy moderates the relationship between compliance cost and gov- ernment support with business resilience. Thus, the findings revealed three important determinants of small busi- nesses’ resilience framework, namely technology acceptance, government support, and financial literacy. The study recommends a dynamic, resilient framework to adopt in the "new normal" situation for the successful navigation of small businesses in the future. Moreover, the study provides insight into the key drivers for business resilience fac- tors that small businesses must be concerned with, as the framework can be used to deal with not only the global pandemic but also uncertain conditions.

Item Type:	Others
Keywords:	Business resilience, financial literacy, government support, small businesses, Covid-19.
Subjects:	300 Social Sciences > 330 Economics
Divisions:	Faculty of Business > Management
Depositing User:	Administrator UMN Library
Date Deposited:	21 Jan 2025 02:45
Last Modified:	21 Jan 2025 02:45
URI:	https://kc.umn.ac.id/id/eprint/35733

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