The Impact of Financial Resources on Business Survival: The Mediating Role of Government Support in Malaysia

Abstract

Businesses worldwide have been severely impacted by the global crisis, plunging them into dire economic circumstances and threatening their financial stability, potentially leading to business collapse. This study aims to examine how franchisees' utilization of financial resources through government support influences their potential for survival. A survey study was conducted among 280 franchisee owners in Malaysia who successfully navigated the challenges of the pandemic. Out of these, 246 valid questionnaires were analyzed using IBM SPSS 26 and Smart PLS 4.0. The findings indicate that financial resources accessed through government support play a crucial role in enhancing franchisee survival. These results provide valuable insights for policymakers, industry stakeholders, and the franchise sector in developing strategic interventions to bolster business resilience during economic crises. Furthermore, this study contributes to franchise management literature by highlighting the significance of financial support mechanisms in sustaining homegrown franchises amid economic uncertainties.