Te e, Felix; Chikoko, Lau ine; Mu endo, Con ad
A icle
Fac o s in luencing he esilience o u al ag icul u al and
e ail Mic o, Small and Medium En e p ises in Midlands
P o ince o Zimbabwe
Cogen Business & Managemen
P o ided in Coope a ion wi h:
Taylo & F ancis G oup
Sugges ed Ci a ion: Te e, Felix; Chikoko, Lau ine; Mu endo, Con ad (2024) : Fac o s in luencing he
esilience o u al ag icul u al and e ail Mic o, Small and Medium En e p ises in Midlands P o ince
o Zimbabwe, Cogen Business & Managemen , ISSN 2331-1975, Taylo & F ancis, Abingdon, Vol. 11,
Iss. 1, pp. 1-13,
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Fac o s influencing he esilience o u al
ag icul u al and e ail Mic o, Small and Medium
En e p ises in Midlands P o ince o Zimbabwe
Felix Te e, Lau ine Chikoko & Con ad Mu endo
To ci e his a icle: Felix Te e, Lau ine Chikoko & Con ad Mu endo (2024) Fac o s influencing
he esilience o u al ag icul u al and e ail Mic o, Small and Medium En e p ises in
Midlands P o ince o Zimbabwe, Cogen Business & Managemen , 11:1, 2404476, DOI:
10.1080/23311975.2024.2404476
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Cogen Business & ManageMen
2024, VoL. 11, no. 1, 2404476
Fac o s in luencing he esilience o u al ag icul u al and e ail
Mic o, Small and Medium En e p ises in Midlands P o ince o
Zimbabwe
Felix e ea, lau ine chikokoa and con ad Mu endob
aFacul y o Business sciences, Depa men o Managemen sciences, Midlands s a e uni e si y, gwe u, Zimbabwe; bResea ch,
Moni o ing and e alua ion Depa men , sa e he Child en in e na ional, Kabul, a ghanis an
ABSTRACT
Fac o s in luencing he esilience o u al ag icul u al and e ail Mic o, small and Medium
En e p ises (MsME) in Zimbabwe ha e ecei ed less esea ch ocus. o add esses his
gap in he li e a u e, his a icle analyzes ac o s in luencing he esilience o u al
ag icul u al and e ail MsMEs. Da a used in his a icle is d awn om a su ey o 492
MsME owne s/manage s om chi umanzu, Gwe u, shu ugwi and Mbe engwa dis ic s
o Midlands p o ince, Zimbabwe. p incipal componen analysis was used o compu e
he esilience index and mul i a ia e linea eg ession was used o s a is ical da a
analysis. he eg ession esul s show ha MsME in e nal esou ces p oxied by asse
alue inc eased MsME esilience by 0.22 index poin s. a conduci e en i onmen
imp o ed he MsME esilience by 1.88 index poin s. En ep eneu ial o ien a ion
mani es ed h ough MsME suppo inc eased MsME esilience by 0.81 index poin s.
obus ness es s using Finscope da a also show ha MsME in e nal esou ces, deno ed
by access o c edi and inancial capi al, inc eased MsME esilience. isk- aking and
con lic esolu ion, which measu e en ep eneu ial, inc eased MsME esilience.
policymake s and business owne s need o p omo e ini ia i es ha imp o e access o
MsME inance o inc ease hei esilience. he public sec o should nu u e a conduci e
business en i onmen wi h sound and p edic able mac oeconomic policies ha os e
business s abili y. MsME owne s mus cons an ly scan hei business en i onmen o
iden i y oppo uni ies o enhance hei esilience capabili ies. he go e nmen and
p i a e sec o s should o e en ep eneu ship aining o MsMEs o build hei esilience.
In oduc ion
Mic o, small and Medium En e p ises (MsMEs) a e globally ecognized as he key cog o he economic
and social de elopmen o many coun ies (Dlamini & schu e, 2020; Fa oki, 2018; Wo ld Bank, 2023).
MsMEs cons i u e mos o he p i a e sec o globally, ep esen ing abou 90% o businesses and con ib-
u ing in excess han 50% employmen (Wo ld Bank, 2023). hey play a c i ical ole in a coun y’s eco-
nomic g ow h, as hey ac as cen e s o en ep eneu ship and inno a ion (Wo ld Bank, 2023). in
Zimbabwe, MsMEs play a pi o al ole in p opelling economic g ow h and se e as he p ima y d i e o
he economy. hey accoun o o e 70% o all economic ac i i ies, c ea e mo e han 60% o employ-
men oppo uni ies, and con ibu e o o e 50% o he coun y’s G oss Domes ic p oduc (Dlamini &
schu e, 2020). his sugges s ha MsMEs play a c ucial ole in socie y by deli e ing essen ial public
goods and se ices, os e ing employmen oppo uni ies, and mi iga ing po e y and inequali y (Wo ld
Bank, 2023).
MsMEs a e key in esusci a ing he economy o Zimbabwe, which has been declining o he pas wo
decades (chundu, 2020; Dlamini & schu e, 2020). hey c ea e employmen and ac as a cushion o
hose who lose employmen h ough e enchmen and downsizing (Makanyeza e al., 2023). Following
massi e disin es men in Zimbabwe and he signi ican in o maliza ion o he economy, MsMEs ha e
© 2024 he au ho (s). Published by in o ma uK Limi ed, ading as aylo & F ancis g oup
CONTACT Felix e e km e [email protected] Midlands s a e uni e si y, gwe u, Zimbabwe
h ps://doi.o g/10.1080/23311975.2024.2404476
his is an open access a icle dis ibu ed unde he e ms o he C ea i e Commons a ibu ion License (h p://c ea i ecommons.o g/licenses/by/4.0/), which
pe mi s un es ic ed use, dis ibu ion, and ep oduc ion in any medium, p o ided he o iginal wo k is p ope ly ci ed. he e ms on which his a icle has been
published allow he pos ing o he accep ed Manusc ip in a eposi o y by he au ho (s) o wi h hei consen .
ARTICLE HISTORY
ecei ed 23 July 2024
e ised 9 sep embe
2024
accep ed 10 sep embe
2024
KEYWORDS
in luencing; esilience and
pe o mance; u al;
ag icul u al; e ail; mic o;
small and medium;
en e p ises; Zimbabwe
SUBJECTS
Economics; Business,
Managemen and
accoun ing; Finance;
De elopmen s udies
2F. E E E al.
become a majo sou ce o li elihood o 80% o he Zimbabwean popula ion. hey a e sa e y ne s whe e
Zimbabweans who los hei jobs in he o mal sec o can ind a sou ce o li elihood (chundu, 2020),
and hey alle ia e po e y and p o ide oppo uni ies o women and you hs o pa icipa e in he econ-
omy (Bomani, 2017).
in Zimbabwe, while he con ibu ion o MsMEs o he na ional economy is well acknowledged, hey ha e
no been spa ed om he economic and clima ic challenges cu en ly acing he na ion (chundu e al.,
2020), including a lack o inancial esou ces, en ep eneu ship, an unconduci e ope a ing en i onmen , and
ecu en d ough s (pelleg ino & abe, 2022). he challenges con on ing MsMEs in Zimbabwe call o he
adop ion o esilience s a egies o hei su i al and g ow h. Mic o small- and medium-sized businesses
(MsMEs) ha e been a gued o lack esilience and a e disp opo iona ely a ec ed by a a ie y o ex e nal
shocks (B anicki e al., 2018). u al MsMEs a e he wo s a ec ed, as inancial ins i u ions and majo busi-
nesses a e op ing ou o hese a eas because o communica ion challenges. hese u al a eas a e now hugely
ma ginalized, and ope a ing a business unde aking in such an en i onmen is an uphill ask. his calls o
MsMEs o os e s a egies o building esilience o enable hem o su i e a ious shocks and s esses.
esea che s, policymake s, and de elopmen pa ne s a e ocusing on MsMEs esilience as a d i e o
socioeconomic de elopmen (aga wal e al., 2022; Baghel, 2023). MsME esilience is de ined as he abili y
o esis , abso b, accommoda e, adap o, ans o m and eco e om e ec s o a haza d o shock in a
imely and e icien way (iye - aniga & ahan a i, 2021; Mo su e al., 2022). acco ding o heo y o
in e nal and ex e nal enable s o MsME esilience by Ghu an e al. (2022), he in e nal ac o s include
(e.g. o ganisa ional beha iou , manage ial cha ac e is ics, quali y), ex e nal (globalisa ion) and enabling
(e.g. use o echnology, gene a ion o capi al, loca ion and ma ke ing, supply chain in eg a ion (albe i
e al., 2018; Ghu an e al., 2022). al hough, inc eased a en ion has been paid o he unde s anding o
esilience o MsMEs’ in o he coun ies (aga wal e al., 2022; saad e al., 2021; Zighan e al., 2022), li le
is known on he de e minan s o MsME esilience in Zimbabwe. Few s udies, conduc ed in o he coun-
ies ha e shown ha in e nal esou ces, conduci e ex e nal en i onmen s, and en ep eneu ship in lu-
ence he esilience o MsME (albe i e al., 2018; ozanne e al., 2022; saad e al., 2021). in addi ion,
esilience was ound o posi i ely and signi ican ly in luence MsME pe o mance (ozanne e al., 2022;
saad e al., 2021; Zighan e al., 2022).
he majo i y o s udies on MsMEs in Zimbabwe ocus on examining he pe o mance o MsMEs
(Musabayana e al., 2022), inno a i eness (Mabenge e al., 2022; Makanyeza & Dz uke, 2015; Makanyeza
e al., 2023), and o maliza ion (Muko e a, 2019) o MsMEs, and li le is known on ac o s in luencing he
esilience o MsMEs. he e o e, he p ima y objec i e o his s udy is o in es iga e ac o s in luencing
he esilience o u al ag icul u al and e ail MsMEs in he Midlands p o ince o Zimbabwe. he esea ch
s udy is guided by he hypo hesis ha in e nal esou ces, a conduci e ex e nal en i onmen , and en e-
p eneu ship in luence he esilience o MsMEs (Ghu an e al., 2022; saad e al., 2021; Zighan e al., 2022).
he indings o his s udy, he e o e, po en ially in o m e o s by policymake s and o he s akeholde s
in ol ed in suppo ing u al MsMEs o de elop sui able policies and s a egies o s eng hen hei esil-
ience. he s udy, aside om he abo e, mo e impo an ly ex ends he body o knowledge on ac o s
in luencing he esilience o MsMEs in a de eloping coun y con ex . in doing so, he esea ch empi i-
cally ex ends he heo e ical ounda ions o in e nal and ex e nal enable s o MsME esilience.
Me hodology
S udy con ex
Zimbabwe has a o al o 2.7 million MsMEs, o which only 14% a e egis e ed (FinMa k us , 2022). in
e ms o na ional dis ibu ion, Midland p o ince cons i u es 16% o he MsMEs, which ansla es o
432,000 egis e ed and un egis e ed MsMEs in he Midlands p o ince. he majo i y o MsME in Zimbabwe
a e ope a ing in he ag icul u e (39.2%) and e ail sec o s (37.5%) (FinMa k us , 2022). hese businesses
employ 3 million adul s and con ibu es app oxima ely usD 8.6billion o he coun y G oss Domes ic
p oduc (FinMa k us , 2022). hence, his sec o is impo an o c ea ing employmen and economic
g ow h in he coun y. his s udy examines he ac o s in luencing esilience o mic o, small, and medium
en e p ise (MsMEs) in Midlands p o ince o Zimbabwe.
coGEn BusinEss & ManaGEMEn 3
Resea ch design
he s udy employed a quan i a i e esea ch design ha en ailed collec ing da a om u al ag icul u al
and e ail MsME owne s and managemen s a . he su ey used closed- and open-ended ques ions.
Quan i a i e esea ch is ancho ed on posi i ism and objec i e in o ma ion collec ed (B yman, 2012;
cecez-Kecmano ic & Kennan, 2018) om MsME o assess hei esilience.
Sampling and sample size calcula ion
he da a o his s udy we e d awn om he quan i a i e su ey o u al ag icul u al and e ail MsME in
Midlands p o ince o Zimbabwe. a mul i-s age sampling echnique was used in his s udy. he i s s age
o sampling in ol ed pu posi e sampling o ou dis ic s in Midlands, which included chi umanzu,
Gwe u, shu ugwi and Mbe engwa, chosen andomly om each dis ic . MsME we e andomly selec ed
om each wa d, and lis s we e ob ained om each business cen e, ag icul u al ex ension o ice s, and
dis ic leade ship.
he popula ion size o MsME in he Midlands p o ince was es ima ed o be 432000, and his cons i-
u es ou popula ion size (FinMa k us , 2022). he sample size calcula ion o he quan i a i e su ey
was compu ed using he aoso o mula ( aoso , 2023). he simpli ied e sion o he o mula:
nZp p
e
=−
()
2
2
1**
whe e n = sample size; (Z) is con idence le el alue o 1.96, (p) = he es ima ed p opo ion o he pop-
ula ion (i unknown, 0.5 used o p o ide maximum sample size), and (e) is ma gin o e o 0.05 ( aoso ,
2023). his o mula yields a o al sample o 384 u al ag icul u al and e ail MsMEs, and he s udy
inc eased he sample size o app oxima ely 492 u al ag icul u al and e ail MsMEs o accoun o he
non- esponse a e.
Da a collec ion
he da a collec ion p ocedu e en ailed collec ing quan i a i e da a, complemen ed by documen analysis.
he main da a collec ion was conduc ed in May 2023. MsME quan i a i e da a we e collec ed h ough he
adminis a ion o su ey ques ionnai es. ained esea ch assis an s, led by he au ho , collec ed da a om
u al ag icul u al and e ail MsME business owne s and managemen s a using Kobo collec . he quan i-
a i e su ey collec ed in o ma ion on MsME owne s’ socioeconomic s a us, esilience, en e p ise pe o -
mance, economic ac i i ies, and co iD-19 s a us. he s udy was complemen ed and iangula ed by
quan i a i e da a analysis o Zimbabwe Finscope MsME 2022 su ey. he Finscope MsME 2022 clean su -
ey da ase was p o ided by FinMa k us , sou h a ica (FinMa k us , 2022) o he i s au ho upon
applica ion, signing o da a access o ms and associa ed app o al. he Zimbabwe Finscope MsME 2022
su ey was conduc ed by FinMa k us . he su ey in e iewed a sample o 3265 adul business owne s
selec ed a he enume a ion a ea le el ac oss he whole coun y (FinMa k us , 2022). sampling o he
su ey was done by Zimbabwe na ional s a is ics agency (ZiMs a ) and he inclusion cha ac e is ics we e
business owne s 18 yea s o olde , gene a ing an income h ough small business ac i i ies and employing
no mo e han 75 employees. he sampling was done o ensu e i s ep esen a i e a he na ional, p o incial
and u ban/ u al le el (FinMa k us , 2022). he su ey collec ed in o ma ion on he size and scope o
MsMEs in Zimbabwe, le els and landscape o access, usage and quali y o inancial p oduc s and se ices,
cons ain s o MsMEs, and d i e s and ba ie s o inancial access o MsMEs (FinMa k us , 2022).
E hics s a emen
he s udy was submi ed o Midlands s a e uni e si y E hics e iew commi ee and app o ed p io o
da a collec ion. he ollowing impo an e hical conside a ions we e aken. pe mission was ob ained om
he local au ho i ies. he su ey esponden s ga e e bal in o med consen and assen o pa icipa e in
he s udy. issues o p i acy, anonymi y, con iden iali y, and do no ha m we e all ensu ed.
4F. E E E al.
Measu emen o a iables
MSME esilience
he e is a agmen ed unde s anding o esilience and i s measu emen s. he s udy no ed ha he
main cha ac e is ics o esilience in he MsME con ex include adap abili y, esponsi eness, main ain-
ing posi i e pe o mance, compe i i eness, and he MsMEs’ abili y o minimize ulne abili ies and
eco e om shocks and s esses (B own e al., 2022; nan & pa k, 2022; ozanne e al., 2022; saad
e al., 2021). he e is a huge deba e on how o measu e esilience; o ins ance, some au ho s ha e
ocused on quali a i e (subjec i e), while o he s ha e used quan i a i e (objec i e) measu emen o
esilience (ozanne e al., 2022). Fo objec i e measu emen , some au ho s ha e used su i al a e,
e enchmen , and ime o eco e om a shock as indica o s o esilience. esilience is a mul idimen-
sional concep ha includes a ious manage ial a ibu es and pe o mance; howe e , (Fe ón‐ ílchez
& ley a‐de la hiz, 2023; ozanne e al., 2022; saad e al., 2021) no ed ha i s measu emen is no
s aigh o wa d. esilience was compu ed using he su ey a iables shown in able 1 (Fe ón‐ ílchez
& ley a‐de la hiz, 2023), and he esponses we e measu ed on a 7-poin like scale, om 1 = com-
ple ely disag ee, 2 = sligh ly disag ee, 3 = disag ee, 4 = neu al, 5 = sligh ly ag ee, 6 = ag ee, and 7 =
comple ely ag ee.
Each o he 12 a iables was con e ed in o a dicho omous a iable, whe e he esponses sligh ly
ag ee, ag ee, and comple ely ag ee we e coded as one and ze o o he wise. p incipal componen analysis
was used o compu e he esilience index om 12 dicho omous a iables. acco ding o Field (2013), he
i s p incipal componen wi h an eigen alue g ea e han one was used as he cons uc o MsME esil-
ience index. he Kaise -Meye -olkin (KMo) measu e o sampling adequacy was used o assess he app o-
p ia eness o pca (Field, 2013). he KMo alue abo e 0.9 indica es ha i is e y sui able o ac o
analysis (0.8–0.9) is sui able; (0.7–0.8) is ai ; (0.6–0.7) is accep able; (0.5–0.6) is no sui able while less
han 0.5 is e y unsui able (Field, 2013).
En ep eneu ship cha ac e is ics
hese a e g ouped in o owne backg ound, human capi al, social capi al, and en ep eneu ial o ien a ion
(saad e al., 2021; Zighan e al., 2022). En e p ises’ owne backg ounds included age, sex, and ma i al
s a us. human capi al (hc) was measu ed by he owne ’s educa ion and business eco ds. En ep eneu ial
o ien a ion (Eo) was measu ed using he en ep eneu ship index compu ed using p incipal componen
analysis using se en a iables: (a) sough accele a ion se ices (e.g., men o ing, coaching, loans), (b) o -
malized ope a ions h ough egis a ion, (c) inc eased p oduc i e asse s (e.g. equipmen and machine y),
(d) sough and ecei ed suppo om he Go e nmen , non-Go e nmen al o ganiza ion (nGos), and
o he o ganiza ions on skills aining; (e) engaged wi h alue chain playe s in pu chasing and selling
ac i i ies; ( ) unde gone business de elopmen aining (e.g., oppo uni y iden i ica ion, business plan-
ning, ma ke ing, inancial li e acy), and (g) es ablished iable ma ke linkages. Zighan e al. (2022) no ed
ha en ep eneu ship o ien a ion is impo an in building esilience.
Table 1. Va iables used o compu e le el o esilience om own su ey da a.
i em/Va iable
1. his MsMe is able o adap o changes due o a ious shocks
2. his MsMe is able o cope wi h un a ou able si ua ions including a ious shocks
3.My MsMe ies o ake he p oblems ela ed o shocks wi h a good disposi ion and see i s posi i e side
4.Dealing wi h he s ess gene a ed by shocks is making my o ganiza ion s onge .
5.a e a se ious di icul y o se back, such as he CoViD-19 o o he shocks, my o ganiza ion is able o eco e
6. he MsMe has capaci y o achie e i s objec i es despi e he cu en obs acles.
7. his MsMe is able o unc ion despi e p essu e due o shocks
8. his MsMe does no easily succumb o p oblems o ailu es.
9. his MsMe is s ong in he ace o di icul ies ela ed o shocks
10. his MsMe may ace se backs and uns able o unpleasan si ua ions, such as CoViD-19 o o he shocks.
11. his MsMe is able o eco e om signi ican damage, such as ha caused by CoViD-19 o o he shocks, and be success ul
12. his MsMe is capable o being success ul agains all odds, as is he case du ing o CoViD- 19 o o he shocks
sou ce. Modi ied and adap ed om Fe ón‐Vílchez and Ley a‐de la Hiz (2023).
coGEn BusinEss & ManaGEMEn 5
MSME in e nal esou ces
MsME in e nal esou ces we e cap u ed by MsME inancial capi al (asse alue), MsME age, ype, and
whe he MsME is licenced.
Business ope a ing en i onmen
he business ope a ing en i onmen ypically includes ins i u ions, in as uc u e, loca ion, and mac o-
economic condi ions. Mac o-economic condi ions include legal and bu eauc a ic es ic ions, a ou able
ax sys ems, ules, egula ions, and poli ical s abili y. he business en i onmen can be de ined as he se
o condi ions ou side a i m’s con ol, which ha e a signi ican in luence on how businesses beha e
h oughou hei li e cycle. esponden s we e asked o cha ac e ize hei business ope a ing en i on-
men . a highly conduci e business ope a ing en i onmen wi h limi ed challenges was coded as one and
ze o o he wise.
COVID-19
he p edominan shock a ec ing MsME in he pas wo yea s was co iD-19. his s udy included a
dummy a iable o measu e whe he co iD-19 had a nega i e e ec on MsME pe o mance. shock
exposu e was measu ed using he esponden s’ own epo s o he e ec o co iD-19 on MsME. ozanne
e al. (2022) also used his shock a iable and ound ha co iD-19 had a nega i e impac on MsME
pe o mance.
Econome ic analysis o ac o s in luencing esilience
he econome ic analysis ocused on ac o s in luencing he esilience o u al ag icul u al and e ail
MsMEs in Midlands p o ince. Desc ip i e and econome ic da a analyses we e pe o med using s a a
e sion 18 and spss 25. Fo desc ip i e analysis, quan i a i e da a we e p esen ed as means and s an-
da d de ia ion, and s uden ’s - es was used o compa isons o quan i a i e da a be ween esilien and
less esilien MsME. s a is ical signi icance was se a p < 0.05 was conside ed s a is ically signi ican . in
his sec ion, we ou line he econome ic da a analysis o esilience. he ac o s in luencing he esilience
o u al ag icul u al and e ail MsMEs we e es ima ed using he ollowing linea eg ession model.
RC h h h hh
h
=+ + + ++
αεββ δδ θθ γ γ
EO FIR NV X
h (1)
whe e c is esilience o u al ag icul u al and e ail MsME
h
; Eo is a ec o o en ep eneu ial ac o s o
hese MsMEs
h
(age, gende and ma i al s a us, educa ion o he owne , business eco ds, isk aking,
aking cha ge o decisions, esol es and implemen s decisions, business p emises licenced o app o ed,
whe he hese MsME ecei es suppo om Go e nmen , nGos, and o he o ganiza ions); Fi is a ec o
o in e nal esou ces o u al ag icul u al and e ail MsME
h:
( inancial capi al, size, MsME age, and ype);
n is a ec o o he ex e nal en i onmen o MsME
h
: (ins i u ions, in as uc u e, loca ion, mac o-economic
condi ions, shocks);
X
is a ec o o o he a iables included in he equa ion;
ε
is he e o e m and
α
h
a e MsME ixed e ec s. linea eg ession was used o es ima e Equa ion (1), gi en ha c is a con inu-
ous a iable (Woold idge, 2010).
Reliabili y and alidi y analysis
his s udy checked he eliabili y and alidi y o he compu ed en ep eneu ship and esilience indices
o u al ag icul u al and e ail MsME. eliabili y analysis assessed he in e nal consis ency o he esilience
indices, ha is, whe he di e en i ems could measu e he same con en o concep independen ly (shan
& ian, 2022). c onbach’s alpha coe icien was used o in es iga e he in e nal consis ency o he en e-
p eneu ship and esilience indices. c onbach’s alpha coe icien is be ween 0 and 1, and i he coe icien
does no exceed 0.6, he in e nal eliabili y is conside ed inadequa e (shan & ian, 2022). c onbach’s
alpha coe icien o 0.6 and 0.9 we e ob ained, deno ing he in e nal consis ency and eliabili y o he
en ep eneu ship and esilience a iables, espec i ely.
6F. E E E al.
alidi y is conce ned wi h he accu acy o he su ey me hod, da a ob ained, and esul s (shan & ian,
2022). he main alidi y es s include con en and cons uc alidi y. o enhance con en alidi y, he
comple ed d a ques ionnai e was pee - e iewed and e ised by a supe iso and classma es o ensu e
ha he ques ions de e mined he subjec unde s udy. Be o e he su ey, he ques ionnai e was p e-
es ed wi h a sample o i e u al ag icul u al and e ail MsME, and epe i i e and ambiguous ques ions
we e e ised and modi ied o achie e good con en alidi y. p incipal componen analysis was used o
compu e and measu e he alidi y o he en ep eneu ship and esilience indices. Fo en ep eneu ship,
he i s p incipal componen wi h an Eigen alue o 1.4 was assumed o be he en ep eneu ship index
and he KMo measu e o sampling adequacy o 0.6, indica ing ha p incipal componen analysis was
app op ia e (Field, 2013). Wi h ega d o esilience, he i s p incipal componen wi h an Eigen alue o
5.6 was aken as he cons uc o esilience index, and he KMo measu e o sampling adequacy was 0.9,
demons a ing ha p incipal componen analysis was app op ia e (Field, 2013).
Mul icollinea i y
Mul icollinea i y occu s when wo o mo e explana o y a iables a e highly co ela ed in a mul iple
eg ession analysis. i mul icollinea i y is high, he eg ession model es ima es o he coe icien s can be
uns able, and he s anda d e o s o he coe icien s can be in la ed signi ican ly. he a iance in la ion
ac o ( iF) was es ima ed o de ec mul icollinea i y. as a ule o humb, a a iable whose iF alue is
g ea e han 10 o whose ole ance alue, de ined as 1/ iF, is lowe han 0.1 should be u he in es i-
ga ed. ole ance, de ined as he 1/ iF, has been used by many esea che s o de e mine he deg ee o
collinea i y. he a iance in la ion ac o s we e less han 10 and he ole ance alues (1/ iF) we e g ea e
han 0.1 o own su ey and Finscope da a showing ha mul icollinea i y does no seem o a ec
he model.
He e oscedas ici y es
o ensu e e icien es ima es, one o he assump ions in he eg ession analysis is he homogenei y o
a iance, known as homoscedas ici y. homoscedas ici y desc ibes he si ua ion in which he e o e ms
a e cons an and shows ha he esiduals and i ed alues o his model a e unco ela ed.
he e oscedas ici y (he e ogenei y o a iance) is a majo challenge in eg ession analysis, because i
esul s in ine icien es ima es (Manning, 1998). he e oscedas ici y was es ed using he B eusch-pagan/
cook-Weisbe g es wi h he es a he es unc ion in s a a. a common app oach o add ess he e osce-
das ici y is o ans o m he a iables using log, Box-cox, and o he ans o ma ion echniques (Manning,
1998). he chi-squa e es yielded a alue o 364***, p = 0.000 o own su ey da a and 1278***, p = 0.000
o Finscope da a. he p- alues o 0.000 a e less han he chosen signi icance alue o 0.05, indica ing a
s a is ically signi ican chi-squa e es . his esul indica es he p esence o he e oskedas ici y in he
dependen a iable o annual income o bo h su ey da ase s.
a common app oach o add essing he e oscedas ici y is o ans o m he a iables using log, Box-cox,
and o he ans o ma ion echniques (Manning, 1998). in his s udy, annual income was log ans o med.
he B eusch-pagan/cook-Weisbe g he e oskedas ici y es o he log annual income eg ession e u ned
a p- alues o 0.27 and 0.73. his es is no longe signi ican as he p- alue is g ea e han he 0.05
cu -o . his sugges s ha he log ans o ma ion o he dependen a iable annual income has success-
ully elimina ed p oblems o he e oscedas ici y o own su ey and Finscope da a, espec i ely.
Resul s
Desc ip i e esul s
able 2 shows he desc ip i e s a is ics o u al ag icul u al and e ail MsME based on su ey da a. on
a e age, he MsME ealized an annual income o us$3658 wi h a maximum o us$64800. abou 77% o
he su eyed MsME subjec i ely a ed hei en e p ises as success ul and pe o med well in he ace o
shocks. Fi y-eigh pe cen o he MsME acknowledged ha he business ope a ing en i onmen was
conduci e o success. abou 75%, 50%, and 53% o he MsME we e solely owned, ocused on ag icul-
u e, and licensed, espec i ely.
coGEn BusinEss & ManaGEMEn 7
MSME cha ac e is ics by esilience s a us om su ey da a
an indi idual MsME in he sample wi h a posi i e esilience sco e was conside ed o ha e high esilience
capaci y and was assigned a sco e o 1; o he wise, a sco e o 0 was assigned. app oxima ely 55% o he
MsME had highe esilience. able 3 compa es MsME pe o mance, asse alue, i m cha ac e is ics, and
en ep eneu ship cha ac e is ics di e en ia ed by esilience s a us, p esen ing he di e ences in means
and - es esul s. he e we e some no able di e ences be ween he wo g oups. he esul s showed ha
esilien MsMEs had a ela i ely highe income han hei coun e pa s and indica ed ha hey we e
likely o be success ul. a highe p opo ion o esilien MsMEs highligh ed ha hey expe ienced a con-
duci e ope a ional en i onmen and we e mo e educa ed han less esilien ones. on a e age, esilien
MsMEs ha e mo e employees and a e mo e en ep eneu ial han less esilien ones.
Desc ip i e esul s o FinScope da a
able 4 shows he desc ip i e s a is ics o he MsME based on he Finscope da a. on a e age, he MsMsE
ealized an annual u no e o us$18,384 wi h minimum o us$20 and a maximum o us$24000. a e age
annual expenses we e us$3784. abou 26% o he su eyed MsME subjec i ely a ed hei en e p ises as
success ul and pe o med well in he ace o shocks. se en y- ou pe cen o he MsME acknowledged
ha co iD-19 had a nega i e e ec on hei businesses. o measu e en ep eneu ship, we conside ed
whe he owne s we e isk ake s and p oblem sol e s and de e mined. abou 81%, 94%, and 92% o he
owne s we e isk ake s, p oblem sol e s, and de e mined and as such we e conside ed en ep eneu ial.
Econome ic esul s
Fac o s in luencing esilience o MSME
in his subsec ion, we es ima e he ac o s in luencing he esilience o u al ag icul u al and e ail MsME
( able 5) based on he su ey da a. We used owne backg ound, en ep eneu ial, MsME in e nal esou ces,
and ex e nal en i onmen al ac o s as a iables in luencing esilience in he eg ession analysis. MSME
in e nal esou ces measu ed by asse alue had a posi i e in luence on he esilience o u al ag icul u al
and e ail MsME. Fo example, asse alue is associa ed wi h an inc ease in he esilience o u al ag i-
cul u al and e ail MsME by 0.22 index poin s. he ex e nal en i onmen was cap u ed by he a iable o
Table 2. Desc ip i e s a is ics based on su ey da a.
Va iable Desc ip ion Mean s d. De Min Max
annual income annual income (us$) 3658 5549 36 64800
Log annual income Log annual income (us$) 7.67 1.01 3.58 11.08
success Business success ul (1 = yes,
0 = no)
77 42 0 100
Resilience Resilience index 0.0 2.36 −4.6 2.47
Conduci e Business en i onmen
conduci e (1 = yes, 0 = no)
58 49 0 100
asse alue asse alue (us$) 1881 5938 0 60000
Log asse alue Log asse alue (us$) 6.0 1.8 1.1 11
age age o owne (yea s) 41.3 12.2 18 96
gende Business emale owned
(1 = yes, 0 = no)
72 45 0 100
educa ion owne has seconda y
educa ion and abo e
(1 = yes, 0 = no)
61 49 0 100
Ma ied owne ma ied (1 = yes,
0 = no)
72 45 0 100
en e p ise ag icul u al en e p ise
(1 = yes, 0 = no)
50 50 0 100
owne sole owne ship (1 = yes,
0 = no)
75 43 0 100
employees numbe o employees 1.6 3.5 0 29
License Business licenced (1 = yes,
0 = no)
53 50 0 100
Business age Yea ’s business ope a ing 5.8 7.7 0.1 100
en ep eneu en ep eneu index 0.0 1.2 −1.7 3.66
numbe o obse a ions 493
no e. all dummy a iables a e in pe cen .
