International Journal of Applied Business and International Management
Vol 10, No 2 (2025): August 2025

Entrepreneurial Leadership and Business Performance of MSMEs: The Mediating Role of Government Support

Bangguiyac, Gretchen Dawaton (Unknown)
CastaƱeda, Marc Oliver (Unknown)



Article Info

Publish Date
20 Aug 2025

Abstract

Micro, small, and medium enterprises (MSMEs) play a vital role in promoting economic growth, especially in rural areas with limited access to employment and livelihood opportunities. This study examined the relationship between entrepreneurial leadership and the business performance of MSMEs in Kalinga, Philippines, with government support as a mediating variable. Using an explanatory correlational design, data were collected from 336 MSME owners through a validated questionnaire. Structural Equation Modeling (SEM) was employed to analyze the relationships among the variables. Findings reveal that among entrepreneurial leadership dimensions, absorbing uncertainty (? = 0.254, p = 0.004) and creative collective self-efficacy (? = 0.220, p = 0.001) significantly and positively impact MSME business performance, while defining gravity shows a significant negative effect (? = -0.102, p = 0.015). Other entrepreneurial leadership dimensions show no significant effect. Government support positively influences performance (? = 0.063, p = 0.0058) but only partially mediates the effect of creative collective self-efficacy (? = 0.017, p = 0.019), contributing 7% mediation. These findings underscore the need for aligning government support to enhancing entrepreneurial leadership strengths to improve the business performance of MSMEs.

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Journal Info

Abbrev

IJABIM

Publisher

Subject

Humanities Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Education Social Sciences

Description

The International Journal of Applied Business and International Management (IJABIM) is a peer-reviewed journal that provides a platform for scholars, professionals, and policymakers to share pioneering research in international business, management, and economics. Published quarterly, the journal ...