Financial and social capital as enablers of sustainable performance among B40 women entrepreneurs in Malaysia

Abstract

Despite numerous government initiatives aimed at improving small business performance, the outcomes of B40 women-owned enterprises in Malaysia remain unsatisfactory. This study examines the influence of financial and social capital on three dimensions of business performance; social, economic, and environmental among B40 women entrepreneurs in Selangor and Kuala Lumpur. A quantitative approach was adopted using a structured questionnaire distributed to 400 respondents, and the data were analysed using Structural Equation Modelling (SEM) via the AMOS software. The results show that financial capital significantly influences economic performance, while social capital exerts a significant effect on social, economic, and environmental performance. These findings underscore that, alongside financial capital, social capital enables small businesses to achieve their objectives through collaboration, trust, and network-based resource sharing. The study offers insights into how strengthening both financial and social capital can foster sustainable performance among B40 women entrepreneurs in Malaysia.