Financial Literacy, Digital Adoption, Social Persuasion and Entrepreneurial Business Performance Towards Achieving Sustainable Development Goals of Decent Works & Economic Growth: Self-Efficacy as a Mediator

Objective: The objective of this study is to investigate the effects of digital adoption, financial literacy, and social persuasion on micro-entrepreneurs' self-efficacy and business performance in Malaysia, with a focus on their contributions to achieving Sustainable Development Goals (SDG), particularly SDG 8 (Decent Work and Economic Growth). The mediating role of entrepreneurial self-efficacy in these relationships is also explored. Theoretical Framework: In this study, the main concepts and theories that underpin the research are presented. The Self-Efficacy Theory, which suggests that self-efficacy is developed through mastery experiences, vicarious experiences, and social persuasion, stands out, providing a solid basis for understanding the context of the investigation. Method: The methodology adopted for this research comprises quantitative analysis utilizing structured questionnaires. Data collection was carried out through questionnaires distributed to 200 micro-entrepreneurs across various sectors in Malaysia, analyzed using SPSS and PLS-SEM. Results and Discussion: The results obtained revealed that digital adoption, financial literacy, and social persuasion positively affect micro-entrepreneurs' self-efficacy, which in turn positively influences their business performance. These results are contextualized within the Self-Efficacy Theory, emphasizing the critical role of self-efficacy in enhancing business outcomes. Possible discrepancies and limitations related to the sample and methodology are also discussed. Research Implications: The practical and theoretical implications of this research are discussed, offering insights into how the findings can influence practices in the field of entrepreneurship. These implications include the development of strategies and support systems that enhance digital skills, financial literacy, and social networks among micro-entrepreneurs. Originality/Value: This study contributes to the literature by empirically testing the mediating role of entrepreneurial self-efficacy in the relationship between digital adoption, financial literacy, social persuasion, and business performance. The relevance and value of this research are evidenced by its potential to inform policy and program development aimed at improving the sustainability and performance of micro-enterprises.