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Despite the noticeable consequences of disruptive financial innovations, access to finance remains a major factor inhibiting the sustainable-growth potentials of young micro-entrepreneurs in informal settings. This study examines the determinants of financing options among micro-entrepreneurs in informal settings. Specifically, the study seeks to establish whether credit history, income, asset, gender, awareness and network capability have effects on formal and informal financing options among micro-entrepreneurs in informal settings.

This article uses the survey research design and administers a structured questionnaire among 300 purposively selected micro-entrepreneurs within the University of Lagos, Nigeria. Only 291 completed questionnaires are retrieved. This article also uses the multiple regression analysis to estimate the empirical model and test the research hypotheses respectively.

This article establishes that: (1) credit history and assets-based financing are significant determinants of formal financing options among young micro-entrepreneurs in informal settings, (2) gender and network capability are significant determinants of informal financing options among young micro-entrepreneurs in informal settings and (3) awareness is significant of both formal and informal financing options among young micro-entrepreneurs in informal settings.

This article examines the determinants of financing option among young micro-entrepreneurs in informal settings. Specifically, the study seeks to establish whether credit history income asset gender awareness and network capability have effects on formal and informal financing options among micro-entrepreneurs in informal settings.

Economic Society 5.0 is the answer to the challenges of the Industrial Revolution 4.0 through the creation of new value from the development of advanced technology that aims to reduce the gap between human and economic problems. Excellent human resources and adequate digital infrastructure are requirements in an Economic Society 5.0. Cooperatives as community economic organizations are players in the Industrial Revolution 4.0. Because of low competitiveness, cooperatives cannot create new and sustainable income streams, particularly digitalization capabilities. This study aims to encourage the competitiveness of cooperatives in the West Java region, Indonesia, in an Economic Society 5.0 by identifying the correlation between digital capabilities, digital orientation, employee resistance, government support, digital innovation and competitiveness.

This study uses a quantitative method through surveys as data collection techniques by distributing questionnaires to 386 leaders of cooperatives in West Java. Hypothesis testing uses analysis technique of structural equation modeling with partial least squares tool.

There are five hypotheses that are supported in the proposed model in this study. Digital orientation and government support have a positif and significant effect on digital innovation, in contrary; digital capability and employee resistance do not show any effect. Digital orientation, government support and digital capability also have a positive and significant effect on competitiveness. Meanwhile, employee resistance and digital innovation have no significant effect on competitiveness. Digital innovation was also found not to mediate the relationship between digital orientation, government support, digital capability and employee resistance with competitiveness.

This study provides new insights into the study of cooperatives as community’s economic institutions. This study adds empirical evidence of the factors that influence the competitiveness of cooperative institutions in Indonesia as a driver of the community’s economy. This study also provides practical implications for the development of cooperative competitiveness in developing countries, particularly in Indonesia.