The Influence of Business Actors’ Human Resource Capacity and Business Networks on Ease of Access to Financing through MSME Financial Competence in West Sumatra

Abstract

This study examines the influence of human resource capacity and business networking on ease of access to financing through MSME financial competence among culinary MSMEs in West Sumatra. The research was motivated by the limited access of MSMEs to formal financing despite their significant contribution to regional economic growth. Many MSME owners still experience difficulties in fulfilling financing requirements due to limited financial management capability, weak business networks, and inadequate human resource quality. Therefore, this study aims to analyze the direct and indirect relationships among business networking, human resource capacity, financial competence, and ease of access to financing. This study employed a quantitative approach using Structural Equation Modeling–Partial Least Square (SEM-PLS) with SmartPLS 3. Data were collected through questionnaires distributed to 125 culinary MSME owners in West Sumatra. The findings reveal that business networking and human resource capacity significantly influence MSME financial competence and ease of access to financing. Furthermore, MSME financial competence was proven to mediate the relationship between business networking, human resource capacity, and financing accessibility. These findings highlight the importance of strengthening internal capabilities and external business relationships.