Sustainable Funding Model for the Bottom 40 Startups: Item Validation

Abstract

There appears to be an insufficient collaboration between the government and social enterprises in developing sustainable funding models, particularly for those from the Bottom 40 households. The goal of this chapter is to develop a dependable instrument for assessing the quality of a sustainable funding model of this type. Items were created to be reliable and valid. To create a valid and reliable item, this chapter highlights the involvement of selected social enterprises in Malaysia’s east coast region to assess their social cause mission, entrepreneurial intention, and sustainable funding initiatives. Expert validation was conducted with practicing social entrepreneurs and academic social entrepreneurship experts. Around 30 young social entrepreneurs took part, and 10 expert panels validated the items. 46 items were measured using Smart PLS 3.0 in these three constructs in the early stages of item development. Due to the panel of experts’ responses, the item was reduced to 35 measurements of all the constructs. The scale validity index overall was 0.90. The presence of good-for-fit indices in the final measurement model was discovered.