Sustainable Entrepreneurship Practices as Predictor of Micro Enterprises Performance in Rural Context: A Structural Equation Modelling Approach

Abstract

Entrepreneurial sustainability practices (ESPs) remain under-discussed despite rising concern about the environment. Entrepreneurship is critical to economic and social endeavours, particularly for underprivileged communities. Nonetheless, it is argued that environmental preservation should be incorporated into entrepreneurial development, which is critical for achieving the Sustainable Development Goals (SDGs). Therefore, the objective of the study is to determine whether adopting ESPs increases the likelihood of superior business performance among micro-entrepreneurs (MEs) in rural settlements. The Jengka Triangle Village, which is in Pahang State, Malaysia was selected as the study population, and the findings were to be generalised using Smart PLS 3.3.9 to model the ESPs using Structural Equation Modelling (SEM) analysis. The study discovered that people skills, financial management, and marketing skills all contributed significantly to the MEs’ superior performance on seven ESP measures. The study also discovered that environmental aspects of ESPs, such as ecosystem management, production management, and stakeholder management, were unlikely to result in a performance advantage. Given the reduced importance placed on environmental concerns in current circumstances, this article discusses implications for policy and best practices in managing entrepreneurship sustainability objectives. © Penerbit UMT