The Effect of Liquidity, Solvability and Assets on the Profitability of Women Entrepreneurs

Rita Indah Mustikowati, Hery Pratikto


In recent years, several researchers have criticized the diversity of gender in influencing the financial performance of companies. Despite providing high benefits and variety in the field of entrepreneurship, female entrepreneurs continue to be seen as an insignificant factor in entrepreneurship due to the dominance of male entrepreneurs. The purpose of this study was to analyze the financial performance of SMEs in Malang Regency. Data were collected from 100 female entrepreneurs and analyzed using multiple linear regression. Data was collected by using a simple random sampling technique. The results showed that liquidity and solvency had no significant effect on the profitability of women entrepreneurs in Malang Regency, while assets had a significant influence on the profitability of women entrepreneurs in Malang Regency. This finding seeks to allocate sources of funds in order to carry out investment activities, provide liquid assets so that they do not lose if at any time they are disbursed, provide guarantees of their own capital to pay off long-term debts, utilize all assets owned in order to increase income.


Liquidity, solvability, assets, profitability, SMEs, Women entrepreneurs

Full Text:



Abata, M. A. (2014). Asset Quality and Bank Performance: A Study of Commercial Banks in Nigeria. Research Journal of Finance and Accounting, 5(18), 39–44.

Abbasi, A., & Malik, Q. A. (2015). Firms’ size moderating financial performance in growing firms: An empirical evidence from Pakistan. International Journal of Economics and Financial Issues, 5(2), 334–339.

Al-Kwifi, O. S., Tien Khoa, T., Ongsakul, V., & Ahmed, Z. U. (2020). Determinants of female entrepreneurship success across Saudi Arabia. Journal of Transnational Management, 25(1), 3–29.

Al-Matari, E. M., Al-Swidi, A. K., & Fadzil, F. H. B. (2014). The Measurements of Firm Performance’s Dimensions. Asian Journal of Finance & Accounting, 6(1), 24–49.

Alvarez, T., Sensini, L., & Vazquez, M. (2021). Working Capital Management and Profitability: Evidence from an Emergent Economy. Nternational Journal of Advances in Management and Economics, 11(1), 1092–1105.

Ananda, A. F. (2018). Stuktur Modal, Kinerja Perusahaan, dan Altman Z-Score Pengaruhnya Terhadap Ekspektasi Investor. AFRE (Accounting and Financial Review), 1(1), 9–16.

Armuña, C., Ramos, S., Juan, J., Feijóo, C., & Arenal, A. (2020). From stand-up to start-up: exploring entrepreneurship competences and STEM women’s intention. International Entrepreneurship and Management Journal, 16(1), 69–92.

Bagis, A. A. (2021). Development of New Success Criteria for SMEs By Relying on Virtual Capital. Proceedings of the 18th International Symposium on Management (INSYMA 2021), 180(Insyma), 314–318.

Barakat, A. (2014). The Impact of Financial Structure, Financial Leverage and Profitability on Industrial Companies Shares Value (Applied Study on a Sample of Saudi Industrial Companies). Research Journal of Finance and Accounting, 5(1).

Bari, K. (2021). Relationship between Liquidity and Firm Performance : Evidence from the Pharmaceutical Industry of an Emerging Economy. Journal of Knowledge Globalization, 13(1), 75–108.

Boz, A., & Ergeneli, A. (2014). Women Entrepreneurs’ Personality Characteristics and Parents’ Parenting Style Profile in Turkey. Procedia - Social and Behavioral Sciences, 109, 92–97.

Bruin, A., Brush, C., & Welter, F. (2007). Advancing a framework for coherent research on women’s entrepreneurship. Entrepreneurship Theory and Practice, 31(3), 323-339.

Brush, C. G. (2017). Research on Women Business Owners: Past Trends, a New Perspective and Future Directions. Entrepreneurship Theory and Practice, 16(4), 5–30.

Chaganti, R. (1986). Management in Women-Owned Enterprises. Journal of Small Business Management, 24(4), 18–29.

Delen, D., Kuzey, C., & Uyar, A. (2013). Expert Systems with Applications Measuring firm performance using financial ratios : A decision tree approach. Expert Systems With Applications, 40(10), 3970–3983.

Eyigege, A. I. (2018). Influence of Firm Size on Financial Performance of Deposit Money Banks Quoted on the Nigeria Stock Exchange. International Journal of Economics and Financial Research ISSN, 4(9), 297–302.

Haryanto, S. (2016). Profitability Identification of National Banking Through Credit , Capital , Capital Structure , Efficiency , and Risk Kredit, Permodalan, Struktur Modal, Efisiensi Dan Tingkat. Jurnal Dinamika Manajemen, 7(57), 11–21.

Haryanto, S., Bachtiar, Y., & Khotami, W. (2020). Efficiency and profitability of Islamic banks in Indonesia. Inovator Jurnal Manajemen, 9(1), 41–48.

Heike Mensi-Klarbach. (2014). Gender in top management research: Towards a comprehensive research framework. Management Research Review, 37(6), 538–552.

Ireland, R. D., & Webb, J. W. (2007). A Cross-Disciplinary Exploration of Entrepreneurship Research. Journal of Management, 33.

Jennings, J. E., & Brush, C. G. (2013). Research on Women Entrepreneurs: Challenges to (and from) the Broader Entrepreneurship Literature? The Academy OfManagement Annals, 7(1), 663–715.

Jingga, F., & Limantara, N. (2015). The Development of Indonesia Small Medium Enterprise ( SME ) Rating and Review Portal. 10(3), 211–218.

Julizaerma, M. K., & Sori, Z. M. (2012). Gender Diversity in the Boardroom and Firm Performance of Malaysian Public Listed Companies. Procedia - Social and Behavioral Sciences, 65(ICIBSoS), 1077–1085.

Khalid, A. C. (2012). The impact of Asset Quality on Profitability of Private Banks in India: A Case Study of JK, ICICI, HDFC & YES Banks. Journal of African Macroeconomic Review, 2(1).

Koziello, W. (2020). A Study of Key Success Factors for Enterprises . Analysis of selected companies. IOSR Journal of Business and Management (IOSR-JBM), 22(3), 55–59.

Mumtaz, R., Rauf, S., & Noreen, B. (2013). Capital Structure and Financial Performance: Evidence from Pakistan (Kse 100 Index). J. Basic. Appl. Sci. Res., 3(14), 113–119.

Mustapha, M., & Subramaniam, P. (2016). Challenges and success factors of female entrepreneurs: evidence from a developing country. International Review of Management and Marketing, 6(4), 224–231.

Naimah, Z., & Hamidah, H. (2017). The Role of Corporate Governance in Firm Performance. SHS Web of Conferences 34, 13003, 391–403.

Niresh, J. A. (2012). Trade -off Between Liquidity & Profitability: A Study of Selected Manufatured Firms in Sri Langka. International Refereed Research Journal, 3(4).

Pooran Wynarczyk. (2007). Addressing the ‘“gender gap”’ in the managerial labour market The case of scientific small and medium-sized. Management Research News, 30(12), 942–954.

Popa, A.-E., & Ciobanu, R. (2014). The Financial Factors that Influence the Profitability of SMEs. International Journal of Academic Research in Economics and Management Sciences, 3(4), 177–185.

Putri, M. O. D., & Wiksuana, I. G. B. (2021). The effect of liquidity and profitability on firm value mediated by dividend policy. American Journal of Humanities and Social Sciences Research, 5(1), 204–212.

Ramadani, V., Hisrich, R. D., & Gerguri, S. (2015). Female entrepreneurs in transition economies: insights from Albania. World Review of Entrepreneurship, Management and Sustainable Development, 11(4), . 391-413.

Rose, C. (2007). Does Female Board Representation Influence Firm Performance? The Danish Evidence. Corporate Governance: An International Review, 15(2), 404–413.

Rudhumbu, N., Plessis, E. (Elize) du, & Maphosa, C. (2020). Challenges and opportunities for women entrepreneurs in Botswana: revisiting the role of entrepreneurship education. Journal of International Education in Business, 13(2), 183–201.

Saba, I., Kibriya, R., & Kouser, R. (2015). Antecedents of Financial Performance of Banking Sector: Panel Analysis of Islamic, Conventional and Mix Banks in Pakistan. Journal of Accounting and Finance in Emerging Economies, 1(1), 9–30.

Saldanli, A. (2012). The Relationship Between Liquidity and Profitability - An Empirical Study on the ISE100 Manufacturing Sector. Journal of Süleyman Demirel University Institute of Social Sciences, 2(16), 167–176.

Seelanatha, L. (2011). Determinants of firms’ performance: Some Chinese evidence. Investment Management and Financial Innovations, 8(3), 28–38.

Sowmya, D. V., Majumdar, S., & Gallant, M. (2010). Relevance of education for potential entrepreneurs: an international investigation. Journal of Small Business and Enterprise Development, 17(4), 626–640.

Sundas, S., & Butt, M. (2021). Impact of Liquidity on Profitability and Performance . a Case of Textile Sector of Pakistan. International Journal of Commerce and Finance, 7(1), 122–129.

Tambunan, T. (2008). Development of SME in ASEAN with Reference to Indonesia and Thailand. 20(1).

Tarigan, J., Hervindra, C., & Hatane, S. E. (2018). Does Board Diversity Influence Financial Performance? International Research Journal of Business Studies, 11(3), 195–215.

Vătavu, S. (2015). The Impact of Capital Structure on Financial Performance in Romanian Listed Companies. Procedia Economics and Finance, 32(15), 1314–1322.

Vintilă, G., & Nenu, E. A. (2015). An analysis of determinants of corporate financial performance: Evidence from the bucharest stock exchange listed companies. International Journal of Economics and Financial Issues, 5(3), 732–739.

Vintilă, G., & Nenu, E. A. (2016). Liquidity and Profitability Analysis on the Romanian Listed Companies. Journal of Eastern Europe Research in Business and Economics, 1–8.

Vu, Nguyen, Ho, & Vuong. (2019). Determinants of Vietnamese Listed Firm Performance: Competition, Wage, CEO, Firm Size, Age, and International Trade. Journal of Risk and Financial Management, 12(2), 62.

Widya, R. W., & Nugrahani, C. (2018). Asset Scale and Capital Structure on The Performance of Sharia Banks. AFRE (Accounting and Financial Review), 1(2), 93–100.

Yalo, M. I., Saliu, H. T., & Enimola, D. J. (2019). Descriptive Analysis of Entrepreneurial Skill and Opportunities Utilization for Sustainable Development in Nigeria. Asian Journal of Economics, Business and Accounting, 9(4), 1–10.

Zulkifli, R. M., & Rosli, M. M. (2013). Entrepreneurial Orientation and Business Success of Malay Entrepreneurs : Religiosity as Moderator. International Journal of Humanities and Social Science, 3(10), 264–275.



  • There are currently no refbacks.

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

AFRE (Accounting and Financial Review)

Postgraduate - University of Merdeka Malang

Postgraduate  Building, Terusan Dieng Street 62-64
Malang City, East Java, Indonesia, 65146.

View My Stats      Web

Other Link

Follow Us

Site Home Journal
Unmer Malang
(0341) 567617
 Fax(0341) 567617

AFRE (Accounting and Financial Review)  Creative Commons License This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.