Measuring dimensions of perceived business success among Malaysian and Bangladeshi SME owners

Abstract

Purpose The purpose of this study is to examine the perceptions of Malaysian and Bangladeshi retail small- and medium-sized enterprise (SME) business owners on the key elements of business growth. Design/methodology/approach The construct measurements have all been taken from previous researches. The data were gathered from retail SMEs in Malaysia and Bangladesh in order to evaluate entrepreneurs' perception towards the essential elements of a business performance. Structural equation modeling (SEM) with PLS-technique, specifically Smart-PLS Version 3.2.4, was used to accomplish the study's objectives and analyze the measurements, as well as the structural model. Findings According to the findings, Malaysian and Bangladeshi SMEs have different perspectives toward the dimensions of their business performance. For example, Malaysian retail SME owners consider business growth and financial results to be the most important aspects of their success. Retailers consider financial performance to be less critical than non-financial performance when it comes to their business's success. Owners of Bangladeshi retail SMEs, on the other hand, see efficiency relative to competition, and that non-financial performance is the key component to achieving business success. In the sense of Bangladeshi SMEs, market development and financial results are seen as less significant in attaining success. Research limitations/implications Since this research was only conducted in Malaysia and Bangladesh, it did not cover a large number of countries. The sample size was limited; therefore, the findings of this study cannot be applied to the entire population of Malaysian and Bangladeshi retail SMEs due to the non-probability sampling technique. Practical implications The findings of this study show that entrepreneurs or business owners in the retail sector in Malaysian and Bangladeshi SMEs view the attributes of their business performance differently. Originality/value This study adds to the rising context of entrepreneurship by examining SME owners' perception of main business performance dimensions in the scope of Asian retail SMEs.