Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia
Post-crisis, micro-entrepreneurs struggle to revive their businesses impacted by the global economic downturn. As businesses shut down, many have also chosen to dive into informal sectors to replace their lost sources of income. This study examined the influence of social trust, social networks, and...
Saved in:
| Main Authors: | , , , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2025-12-01
|
| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2025.2460614 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| _version_ | 1850109155827777536 |
|---|---|
| author | Nisful Laila Shafinar Ismail Putri Aliah Mohd Hidzir Ririn Tri Ratnasari Nurul Ezaili Alias |
| author_facet | Nisful Laila Shafinar Ismail Putri Aliah Mohd Hidzir Ririn Tri Ratnasari Nurul Ezaili Alias |
| author_sort | Nisful Laila |
| collection | DOAJ |
| description | Post-crisis, micro-entrepreneurs struggle to revive their businesses impacted by the global economic downturn. As businesses shut down, many have also chosen to dive into informal sectors to replace their lost sources of income. This study examined the influence of social trust, social networks, and financial knowledge on the financial well-being of micro-entrepreneurs in Malaysia and Indonesia. This study’s framework is underpinned by social capital theory. Questionnaires were distributed in both countries through purposive sampling, and 330 valid respondents were included in the analysis using Partial Least Square Structural Equation Modelling (PLS-SEM). The results revealed that all variables significantly impacted the financial well-being of micro-entrepreneurs, with financial knowledge being the strongest predictor. This study contributes to the literature by incorporating elements of social capital towards assess financial well-being through a multigroup analysis of neighbouring countries. The results may also help policymakers and financial institutions construct better offerings and services for underserved communities, especially for micro-entrepreneurs. |
| format | Article |
| id | doaj-art-7e23efafb7e7448f9002bc87bcc91e4e |
| institution | OA Journals |
| issn | 2331-1975 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj-art-7e23efafb7e7448f9002bc87bcc91e4e2025-08-20T02:38:10ZengTaylor & Francis GroupCogent Business & Management2331-19752025-12-0112110.1080/23311975.2025.2460614Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and IndonesiaNisful Laila0Shafinar Ismail1Putri Aliah Mohd Hidzir2Ririn Tri Ratnasari3Nurul Ezaili Alias4Faculty of Economic and Business, Universitas Airlangga, Surabaya, IndonesiaFaculty of Business and Management, Universiti Teknologi MARA, Malacca, MalaysiaFaculty of Business and Management, Universiti Teknologi MARA, Malacca, MalaysiaFaculty of Economic and Business, Universitas Airlangga, Surabaya, IndonesiaFaculty of Business and Management, Universiti Teknologi MARA, Malacca, MalaysiaPost-crisis, micro-entrepreneurs struggle to revive their businesses impacted by the global economic downturn. As businesses shut down, many have also chosen to dive into informal sectors to replace their lost sources of income. This study examined the influence of social trust, social networks, and financial knowledge on the financial well-being of micro-entrepreneurs in Malaysia and Indonesia. This study’s framework is underpinned by social capital theory. Questionnaires were distributed in both countries through purposive sampling, and 330 valid respondents were included in the analysis using Partial Least Square Structural Equation Modelling (PLS-SEM). The results revealed that all variables significantly impacted the financial well-being of micro-entrepreneurs, with financial knowledge being the strongest predictor. This study contributes to the literature by incorporating elements of social capital towards assess financial well-being through a multigroup analysis of neighbouring countries. The results may also help policymakers and financial institutions construct better offerings and services for underserved communities, especially for micro-entrepreneurs.https://www.tandfonline.com/doi/10.1080/23311975.2025.2460614Financial knowledgefinancial well-beingmicro-entrepreneursocial networksocial trustEntrepreneurship and Small Business Management |
| spellingShingle | Nisful Laila Shafinar Ismail Putri Aliah Mohd Hidzir Ririn Tri Ratnasari Nurul Ezaili Alias Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia Cogent Business & Management Financial knowledge financial well-being micro-entrepreneur social network social trust Entrepreneurship and Small Business Management |
| title | Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia |
| title_full | Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia |
| title_fullStr | Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia |
| title_full_unstemmed | Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia |
| title_short | Impact of social trust, social networks, and financial knowledge on financial well-being of micro-entrepreneurs in Malaysia and Indonesia |
| title_sort | impact of social trust social networks and financial knowledge on financial well being of micro entrepreneurs in malaysia and indonesia |
| topic | Financial knowledge financial well-being micro-entrepreneur social network social trust Entrepreneurship and Small Business Management |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2025.2460614 |
| work_keys_str_mv | AT nisfullaila impactofsocialtrustsocialnetworksandfinancialknowledgeonfinancialwellbeingofmicroentrepreneursinmalaysiaandindonesia AT shafinarismail impactofsocialtrustsocialnetworksandfinancialknowledgeonfinancialwellbeingofmicroentrepreneursinmalaysiaandindonesia AT putrialiahmohdhidzir impactofsocialtrustsocialnetworksandfinancialknowledgeonfinancialwellbeingofmicroentrepreneursinmalaysiaandindonesia AT ririntriratnasari impactofsocialtrustsocialnetworksandfinancialknowledgeonfinancialwellbeingofmicroentrepreneursinmalaysiaandindonesia AT nurulezailialias impactofsocialtrustsocialnetworksandfinancialknowledgeonfinancialwellbeingofmicroentrepreneursinmalaysiaandindonesia |