The document discusses a study that examined the impact of human capital and financial capital on the performance of women entrepreneurs in micro and small enterprises in Perak, Malaysia. The study found that human capital, such as education level and experience, has a significant impact on business performance. Financial capital, which includes startup capital and monthly revenue, also significantly impacts profitability. Specifically, higher levels of education, experience, startup capital, and monthly revenue were shown to improve business performance measures like profits and revenue. The study utilized questionnaires and statistical analysis to reach these conclusions.

1. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
GJMB
The Influence of Human and Financial Capital on the
Performance of Woman Entrepreneurs in Micro and Small
Entreprises in State of Perak, Malaysia
*Amrina Md Saad1, Mass Hareeza Ali2, Garba Mohammed Guza3
1,2
Department of Management and Marketing, Faculty of Economics and Management, University Putra Malaysia
3
Mai Idriss Alooma Polytechnic, Geidam, Nigeria
Woman entrepreneurs have a vital role in a country’s economic growth and development. This
paper examined the impact of human capital and financial capital on the performance of woman
entrepreneurs in Micro and Small Enterprises (MSEs). The paper employed quantitative method
with usable questionnaires among women entrepreneurs. Pearson Correlation and Multiple
Regression model were used to analyze data by using SPSS software and the results indicate
that human capital has an impact on the business performance and the relationship is
significant. On the other hand, financial capital has a significant impact on the profitability among
women entrepreneurs with significant positive value.
Keywords: Human capital, woman entrepreneurs, financial capital, micro and small enterprises
INTRODUCTION
Women represent more than half of the total population in
Malaysia, as they not only contribute to their family (Ming-
Yen, & Siong-Choy, 2007), but also significant to the
economic development of the country, both in job creation,
and revenue generation (Mahajar & Jumaat, 2012).
Women participation in entrepreneurship showed an
improvement in business and economic development
(Adema et al, 2014). The study by Adema et al. (2014) has
given several contributions on different stakeholders such
as women entrepreneurs, governments, private
organizations and relevant social institutions that can
facilitate and enhance the desire achievement in economic
development. Previous study found out that women are
often more prepared to deal with customers with a
relatively more patient and careful approach to managing
thebusiness (Jasra et al, 2012). Women are in business
for the more reason, to pursue intrinsic goals: flexibility to
run a business and domestic lives, and their independence
(Namusonge, 2006).
Women entrepreneurs are increasing their share of the
business population and business receipts rapidly, but a
sizeable gap remains between men and women business
owners (Aldrich et al; 1989). However, the number of
women’s participation is relatively small as compared to
businesses owned by men (Hemalatha et al, 2013), and
they are concentrated in a limited array of industries;
mostly in retails and services. The issue of unemployment
was becoming more complex and serious social crisis that
impact negatively on nation’s economic growth (Levine,
2012). Consequently, the situation encourages women to
become aggressively involved in becoming entrepreneurs
by creating job opportunities in various business
cycles.The capability of the women in business should be
developed to encourage them to perform better, while the
government and other institutions have to take up the
responsibility of empowering them to achieve their set
targets successfully (Singh & Raina, 2013).This research
is prepared to investigate impact of human capital and
financial capital on the performance of woman
entrepreneurs in businesses. There were several
objectives to be achieved; the research is conducted to
identify the influence of human and financial capital on the
performance of woman entrepreneurs in micro and small
entreprises in state of perak, malaysia.
*Corresponding author: Amrina Md Saad, Department of
Management and Marketing, Faculty of Economics and
Management, University Putra Malaysia. E-mail:
amrinams@yahoo.com
Global Journal of Management and Business
Vol. 5(1), pp. 065-070, May, 2018. © www.premierpublishers.org, ISSN: 8018-0934
Research Article

2. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
Saad et al. 066
Concept of woman entrepreneurs and business
performance
Women are becoming crucial to the growing economic
cluster, which ensures a rapid achievement in the
economic development. The entrepreneur is the one who
has the ability to organize, manage and assume risk in the
course of starting a business (Stenross, 2007). Women
entrepreneurs in SMEs provide an effective tool for
economic growth, contribute significantly to the world
economy, and their number has grown over time
(Niethammer, (2013). Women entrepreneurs contribute to
the modernization of the developing countries and
facilitate enterprise development in transition economies
(Lerner et al., 1997). A previous study defined women
entrepreneurs as a group of women who initiate, organize
and operate a business enterprise (Vinesh, 2014). The
number of women entrepreneurs in Malaysia increased in
the last three decades due to the emphasis on
industrialization, and a growing interest in privatization,
self-employment and business-oriented employment
(Ismail, 1996).
The performance of woman entrepreneurs has become an
important agenda in recent policy and academic debates,
especially in Malaysia. Business performance is evaluated
based on different concepts (Srinivasan & Cooper, 1994).
Business performance is measured based on the profit,
revenue, the number of employees and personal income
of the women entrepreneurs (Lerner et al, 1997).
Performance also defined as a complex phenomenon of
different dimensions that are difficult to control without
using a combination of objective and subjective measures
(Dharmaratne, 2013).Previous study hadinvestigated the
factor of the level of education, previous occupational
experience, and prior business expertise and
management skills toward the success of women
entrepreneurs(Huarng et al, 2012). However, the recent
study conducted deeply on the importance of human
capital and financial capital towards improving the
performance of women entrepreneurs in business.
Human Capital
Human capital is an important asset with a vital role in the
economic growth and development, it also a good
investment for promoting a better nation (Son, 2010).
There is a positive correlation and significant between
human capital and performance in SMEs (Fatoki, 2011),
also an important factor to exploit the potential business
opportunities and an ability expressed in the
transformation of work experience to knowledge and skills
[Unger et al.(2011); Olabisi & Akinola, (2012)]. Consistent
with the findings of Nordin et al. (2011), previous
entrepreneurial experience and previous business
experience positively affected the potential of businesses.
Brush & Hisrich (1991) highlighted that formal education is
the best component of human capital and good investment
that may aid the growth of specific knowledge and
beneficial skills to entrepreneurs (Reynolds et al.,2005).
Training is an appropriate approach and significant
towards acquiring the relevant education that would
enhance an improvement in the business skills, knowledge
and communication among women entrepreneurs (Nordin
et al., 2011). It shows there is a positive relationship
between training and profitability to encourage business
performance in developing economies (Birley &
Westhead, 1990).
Financial Capital
Capital is a necessary crucial factor which costs as other
factors particularly financial capital. Bosma et al., (2004)
defined financial capital as one foundation of business
establishment and has been an important factor affecting
performance. There is a significant relationship or
association between individual initiative and financial
capital as general assets, which is expected to ensure
positive growth in business (Pening et al., 1998). Financial
capital is critical factors that affect profitability and
encourage women entrepreneurs to expand the business
as well as generating more profit and ensuring business
growth (Nordin et al, 2011).This is similar to the findings of
Gatewood et al., (2004), which indicated that there is a
positive relationship between financial capital and
profitability.
RESEARCH METHODOLOGY
The study employed quantitative techniques in order to
generate the beneficial outcomes by using survey method.
This method ever been applied earlier by several
researchers [Farr-Wharton & Brunetto (2007); Mahajar &
Yunus (2012); Rashid et al (2015)]. Primary sources were
accurately used as an appropriate medium to get the best
material which gained directly from the participants without
any modification. It has been practically adopted by
several researchers [Nordin et al. (2011); Wube (2010);
Zhouqiaoqin & Xie (2013)], who have successfully gained
the information directly from the roots. Secondary data
was used to support the previous and future data for
understanding more clearly about the research such as
reference books, journals, and encyclopedia. Simple
Random Sampling of 373 respondence employed to select
the group of population among woman entrepreneurs in
Perak to answer the objective of this study. It is a basic
sampling technique in selecting the sample of the study to
generate some degree of generalization of the population
during data collections [Onugu (2005); Jibrilla, (2013)].A
self-design questionnaire was used to gather the data
(Rashid et al, 2015; Mahajar & Jumaat, 2012;
Chittithaworn, 2011; Lerner at al, 1997). Questionnaires
have been validated before real survey begins to distribute
the questionnaires to respondents (Fatoki, 2011). The
data were analyzed by using Statistical Package software

3. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
Global J. Manag. Bus. 067
for Social Science (SPSS) and the method of Pearson
Correlation and Multiple Regression Analysis was used to
test the hypothesis and find out the results for the research
paper
RESULTS
Descriptive Analysis
The results show that most women between the ages of
31 and 40 were actively involved in business with an
estimated 39.7 per cent, 38.3 per cent of women found to
be of intermediate groups between 41 and 50 years, 14.5
per cent for those aged 51 years old and above classified
as the senior in business that has more experiences to
explore the business and improve the performance.
However, 7.5 percent of respondentsunder 30 years old
start to involve in business. These percentages are
presented in Figure 1 below
Figure 1: Pie chart indicating the category of Age of
woman entrepreneurs
The finding also shows that 69.4 percent of married
couples, mostly involved in businesses. 10.2 percent of
them are still single, some of them are going to take risks
to start a business from doing part time until succeeded as
full-time business entrepreneurs. The remaining of 20.4
percent found to be divorced or widowed. The majority of
respondents in the study indicated other’s certification of
skills from Giatmara, Community College and several
other institutions. The results that about 59.2 per cent of
woman entrepreneurs have higher education at least Sijil
Pelajaran Malaysia (SPM) or Sijil Pelajaran Vokasional
Malaysia (SPVM). The pie chart in Figure 2 below
explained.
Figure 2: percentage of woman entrepreneurs that
single, married and widowed
The finding also shows that only 14.5 per cent of them
have a degree and very rare holds Master degree, about
0.5 per cent. 25.7 per cent only have Penilaian Menengah
Rendah (PMR) and the rest of them have a Certificate of
Higher Education Malaysia or Sijil Tinggi Pelajaran
Malaysia (STPM) and DIPLOMA the following bar chart
reported the level of education of the woman
entrepreneurs
Figure 3: Level of education of woman entrepreneurs
in percentage of Total sampled
Furthermore, Figure 4 explained that 54.7 per cent of
women entrepreneurs in Perak having monthly revenue
below RM5,000 and 33.5 per cent have monthly revenue
between RM5, 000 to RM10, 999. Meanwhile,10.2 per
cent of them can reach up until RM11, 000 to RM49, 999
and 1.6 per cent of them can get monthly revenue between
RM50, 000 and above even it is very rare to achieve but it
is not impossible to get with a strong effort.The survey in
figure 4.6 represents 57.1 per cent of the respondents
have a monthly profit less than RM3, 000, followed by 31.4
per cent of women entrepreneurs who have a profit from
between RM3, 000 to RM10,000. Among of them, only
11.5 per cent recorded monthly business profit RM10,000
and above.

4. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
Saad et al. 068
Figure 4: Category of income of woman entrepreneurs in Malaysian Currency
The research found that the number of employees does
not show gradually affect the performance of the business
as 83.6 per cent have less than 5 employees in Micro
enterprises. However, 13.7 percent have employee
between 6 and 10 persons and 2.7 percent have workers
between 11 and 20 persons.The survey also showed that
majority of women entrepreneurs starts their business with
a capital below RM10, 000 as shown in figure 8. 37.8 per
cent of the respondents having a start-up capital between
RM10,000 to RM49,999, followed by 7.2 per cent with
RM50,000 to RM100,000 and 5 per cent with capital more
than RM100,000.
Findings and discussion
The results for the analysis are mentioned below.
Table 1 : The correlation between human capital on
revenue and profitability
Revenue Profitability
Pearson
Correlation
Sign. N Pearson
Correlation
Sign. N
Human
Capital
-0.100 0.027** 373 -0.130 0.006** 373
Financial
Capital
0.164 0.003** 373 0.164 0.012** 373
Table 2 : The regression results of the impact of
human capital on revenue and profitability
Revenue Profitability
SE Β T Sign. SE Β T Sign.
Human
Capital
0.115 -
0.149
-
2.905
0.004** 0.108 -
0.175
-
3.412
0.001***
Financial
Capital
0.089 0.134 2.582 0.010** 0.083 0.114 2.189 0.029**
a. Dependent Variable: Monthly Revenue (RM)& Monthly Profit
(RM)
b. ***, ** and * denoteCorrelation is significant at the 0.01, 0.05
and 0.1 level (1-tailed).
Table 1 explained that human capital has a nagetive
relationship with significant value at 0.05 percent for the
revenue and profitability using pearson correlation at -0.1
and -0.13. At the other side, financial capital has a positive
relationship with the performance of women entrepreneurs
in business at the sign value of 0.05 percent using pearson
correlation value at 0.16 for each on revenue and
profitability. Based on the results as above value, it
showed that both the hypothesis are supported. It could
be considered that the performance of women
entrepreneurs had been impacted by financial capital and
human capital. Table 2 found that human capital has an
impact on the performance of women entrepreneurs in
business at sign. negative value at 0.05 for revenue and
0.01 for profitability (t=-2.905, and t=-3.412). Meanwhile,
financial capital also has significant impact on the
performance at sign.value of 0.05 (t=2.582) for revenue
and profitability (t=2.189).
The results found that there is a correlation between
human capital and the performance of woman
entrepreneurs in business, which is consisting previous
entrepreneurial experience, level of education as well as
skill and knowledge. Human capital contributes a lot when
it comes to performance. However, the findings did not
show there starting up is a strong relation between human
capital and the performance of women entrepreneurs in
business. Level of education did not affect too much on
performance as it is not a requirement to be an
entrepreneur, but only an advantage to increase the
individual capabilities and the potential to diversify the field
and knowledge. The important thing in business is the
knowledge of the products and the best marketing and
services you give to others. The majority respondent will
hold internal meeting commonly and build a good strategy
to plan and manage the company better to improve the
business performance. Zhouqiaoqin and Xie (2013) got
similar relationship.
Revenue below,
5000 55%
Revenue , 5000 –
10,999, 33.5%
Revenue , 11,000
– 49,999, 10.2%
Revenue , 50,000
and above 1.3%

5. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
Global J. Manag. Bus. 069
Financial capital plays a vital role in the economy and
consistently to be an important factor to encourage the
business development in women, whether in the business
and expanding it effectively. The finding indicates that
financial capital is very significant with the revenue and
profitability, also affect positively on the performance of
women entrepreneurs in business. The establishment of
the various financial assistance through a number of
stakeholders such as government agencies, the Malaysia
Government Link Company (GLC), commercial Banks,
and some others private sectors can provide funding to
help women entrepreneurs developing business in order
to achieve the mission of government to promote
economic growth. Mukulu (2013) has uncovered similar
relationship. Therefore, without enough financial capital, it
is hard for women to start up and expand the business in
order to achieve the objective successfully.
CONCLUSION
This research paper has made its contribution of the
impacts of human capital and financial capital on the
performance of women entrepreneurs in small and
medium enterprises, in Perak, Malaysia. The findings of
the study have gained in-depth understanding of the
explanations about the impact of human and financial
capital on the performance of women entrepreneurs in
business. The results indicated the evidence that there is
a significant relationship between human capital and
financial capital on the performance among women
entrepreneurs in business. Therefore, the explanation of
respondents can help researchers to know the needs of
women entrepreneurs and other institutions need to find
various programs and support to improve the performance
of women entrepreneurs. This paper is expected to give
useful insight and guidance on knowledge of
entrepreneurship and the priority factors on women
entrepreneurs in improving their business performance. It
will also be able to create a good culture and healthy
competition. In conclusion, this study contributes to the
theoretical and practical aspects of the factors that affect
the performance of women entrepreneurs. If we can
achieve a better understanding of the key factors that
affect the performance of woman entrepreneurs, this will
implicate women entrepreneurs and investors to grow their
business successfully in this global environment.
The paper studies the effects of human capital and
financial capital toward the performance of women
entrepreneurs which is a broad topic. This study is limited,
which covers the state of Perak only due to financial and
time constraint. From the research paper, it is
recommended that future research is going to conduct
research about several states in Malaysia and increase the
numbers of samples that will represent the women
entrepreneurs throughout the country.It’s recommended to
focus the improvement of women entrepreneurs on the
economic growth and development of the nation in the
future research. It is also interesting to investigate the
innovation in human capital that affect the performance of
women entrepreneurs using a comprehensive framework
that has been developed.
REFERENCES
Adema, W., Ali, N., Frey, V., Kim, H., Lunati, M., Piacentini,
M., & Queisser, M. (2014). Enhancing Women’s
Economic Empowerment through Entrepreneurship
and Business Leadership in OECD Countries.
Alam, S. S., Jani, M. F. M., & Omar, N. A. (2011). An
empirical study of success factors of women
entrepreneurs in southern region in Malaysia.
International Journal of Economics and Finance,
3(2), 166.
Aldrich, H., Reese, P. R., & Dubini, P. (1989). Women on
the verge of a breakthrough: Networking among
entrepreneurs in the United States and
Italy. Entrepreneurship & Regional Development, 1(4),
339-356.
Birley S. & Westhead, P. (1990). Growth and performance
contrasts between “types” of small firms. Strategic
Management Journal, 11(7): 535–557
Bontis, N., Keow, W. C. C., & Richardson, S. (2000).
Intellectual Capital And Business Performance In
Malaysian Industries. Journal of Intellectual Capital,
1(1), 85-100.
Bosma, N., Van Praag, M., Thurik, R., & De Wit, G. (2004).
The value of human and social capital investments for
the business performance of startups. Small Business
Economics, 23(3), 227-236.
Brush, C. G., & Hisrich, R. D. (1991). Antecedent
influences on womenowned businesses. Journal of
Managerial Psychology, 6(2), 9-16.
Chittithaworn, C., Islam, M. A., Keawchana, T., & Muhd
Yusuf, D. H. (2011). Factors Affecting Business
Success of Small & Medium Enterprises (SMEs) in
Thailand. Asian Social Science, 7(5), 180–190.
Dharmaratne, K. L. B. G. (2013). Impact of individual
factors on the business performance of women
entrepreneurs in Sri Lanka. Sabaragamuwa University
Journal, 11(1).
entrepreneurship monitor: Data collection design and
implementation 1998–2003.Small business economics,
24(3), 205-231.
Farr-Wharton, R., & Brunetto, Y. (2007). Women
entrepreneurs, opportunity recognition and
government-sponsored business networks: A social
capital perspective. Women in Management Review,
22(3), 187-207.
Fatoki. O (2011). The Impact of Human Capital, Social and
Financial Capital on the performance of Small and
Medium Sized Enterprises (SMEs) in South Africa.
Journal of Social Science. 29(3).193-204
Gatewood, E. J., Brush, C. G., Carter, N. M., Greene, P.
G., & Hart, M. M. (2004). Women entrepreneurs,
growth, and implications for the classroom. Coleman

6. The Influence of Human and Financial Capital on the Performance of Woman Entrepreneurs in Micro and Small Entreprises in State of Perak, Malaysia
Saad et al. 070
Foundation White Paper Series for the United States
Association for Small Business and Entrepreneurship
on 2004.
Hemalatha, M., Mohan, V. C., & Jasim, K. M. (2013). The
antecedents of marketing success of women
entrepreneurs. International Journal of Business
Innovation and Research, 7(6), 637- 662.
Huarng, K. H., Mas-Tur, A., & Yu, T. H. K. (2012). Factors
affecting the success of women entrepreneurs.
International Entrepreneurship and Management
Journal, 8(4), 487-497.
iness success of small and medium enterprises.
Ismail, M. (1996). Gender needs analysis of women
entrepreneurs. Pertanika Journal of Social Sciences &
Humanities, 4(1), 1-9.
Jasra, J. M., Hunjra, A. I., Rehman, A. U., Azam, R. I., &
Khan, M. A. (2012). Determinants of bus
Jibrilla, A. A. (2013). Impact of government interventions
on small scale entreprises in Mubi North local
government area, Adamawa state, Nigeria. Journal of
Economics and Sustainable Development, 4(17), 121.
Kuratko, D. F.& Hodgetts, R. M(2004), Entreprenuership –
Theory,Process, Practice, 7th ed, Thomsoson. 729.
Lerner, M., Brush, C., & Hisrich, R. (1997). Israeli women
entrepreneurs: An examination of factors affecting
performance. Journal of Business Venturing, 12(4),
315–339.
Levine, L (2012). Economic growth and the unemployment
rate. Washington, DC: Congressional Research
Service.
Mahajar, A. J. B., & Yunus, J. B. M. (2012). Factors that
encourage women involvement in SMEs in Pahang,
Malaysia. The Journal of Human Resource and Adult
earning, 8(2), 33.
Ming-Yen, T. W., & Siong-Choy, C. (2007). Theorising a
framework of factors influencing performance of women
entrepreneurs in Malaysia. Journal of Asia
Entrepreneurship and Sustainability, 3(2), 1.
Namusonge, G.S. (2006), Entrepreneurial Finance and
Micro, Small and Medium Enterprises (MSME)
Innovation in Kenya. Technological and
Industrialization Conference, JKUAT Nairobi.
Niethammer, C. (2013). Women, entrepreneurship and the
opportunity to promote development and business.
Brookings Blum Roundtable Policy Brief, 37.
Nordin, N. A. M., Hamid, A. H. A., & Woon, C. C. (2011).
Factors affecting profitability of women entrepreneurs
business in Malaysia. Annual Summit on Business and
Entrepreneurial Studies (ASBES 2011), 972-985.
Olabisi, S. Y., & Akinola, O. A. (2012). Human Capital and
Women Entrepreneurs in Tye and Dye Micro-
Business in Ogun State, Nigeria. Global Journal of
Human-Social Science Research, 12(5).
Onugu, B. A. N. (2005). Small and medium enterprises
(SMEs) in Nigeria: Problems and prospects. St.
Clements University, Nigeria (Unpublished Dissertation
for a Doctor of Philosophy in Management Award).
Pennings, L., K. Lee & A. Witteloostuijn (1998). Human
Capital, Social Capital, and Firm Dissolution. Academy
of Management Journal, 425–440.
Rashid, K. M., Ngah, H. C., Mohamed, Z., & Mansor, N.
(2015). Success Factors Among Women Entrepreneur
In Malaysia. International Academic Research Journal
of Business and Technology, 1(2), 28–36.
Reynolds, P., Bosma, N., Autio, E., Hunt, S., De Bono, N.,
Servais, I., ... & Chin, N. (2005). Global
role in the Java Sea timber trade (Doctoral dissertation,
Murdoch University).
Singh, A., & Raina, M. (2013). Women entrepreneurs in
micro, small and medium enterprises. Internafional
Journal of Management and Social Sciences Research
(IJMSSR), 2(8).
Son, H. H. (2010). Human capital development. ADB
Economics Working Paper Series Asian Development
Bank. No. 225.
Srinivasan, R., Woo, C., & Cooper, A. (1994).
Performance determinants for male and female
entrepreneurs. Krannert Graduate School of
Management, Institute for Research in the Behavioral,
Economic, and Management Sciences.
Stenross, K. (2007). The seafarers and maritime
entrepreneurs of Madura: history, culture, and their
Unger, J. M., Rauch, A., Frese, M., & Rosenbusch, N.
(2011). Human capital and entrepreneurial success:
A meta-analytical review. Journal of Business
Venturing, 26(3), 341-358.
Vinesh, L. (2014). Role of women entrepreneurs in India.
Global Journal of Finance and Management, 6(5), 473-
480.
Wube, M. C. (2010). Factors Affecting The Performance of
Women Enterpreneurs in Micro and Small Enterprises
(The Case of Dessie Town). International Journal of
Business and Management Invention.Vol 3(4). Pp. 67-
69
Zhouqiaoqin, Y., & Xie, Y. (2013). Factors that influence
the success of women entrepreneurs in China: A
survey of women entrepreneurs in Beijing. Journal of
Humanities and Social Science, 18(3), 83-91.
Accepted 4 May 2018
Citation: Saad AM, Ali MH, Guza GM (2018). The
Influence of Human and Financial Capital on the
Performance of Woman Entrepreneurs in Micro and Small
Entreprises in State of Perak, Malaysia. Global Journal of
Management and Business, 5(1): 065-070.
Copyright: © 2018 Saad et al. This is an open-access
article distributed under the terms of the Creative
Commons Attribution License, which permits unrestricted
use, distribution, and reproduction in any medium,
provided the original author and source are cited.