Effect of Microfinance Services on Entrepreneurial Success: Mediating Influence of EntrepreneurialInclination

Abstract

The studies in the context of microfinance on entrepreneurial success are very few in under-developed countries. Therefore, to mitigate the contemporary research gap in the literature, the objective of the current research study measure the hierarchal relationship amid micro finance services, entrepreneurial inclination and business success and the impact of micro-finance services on entrepreneurial inclination and success in Pakistan. Result originated that micro-credit, micro-savings, micro-insurance and micro-leasing is considerable and affirmative conjecture of the firm’s revenue, market share and profit. Moreover, the entrepreneurial-innovation, risk taking, proactiveness and autonomous is considerable and affirmative conjecture of the firm’s revenue, market share and profit. In addition, the micro-credit is considerable and affirmative conjecture of entrepreneurial innovativeness, risk taking, proactiveness and autonomy. The study concluded that the micro finance services should be channeled to rural and urban entrepreneurs in order to give them a proper orientation on micro-finance activities and how they can help them develop their sector. The recommendations and limitations are incorporated in study.