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Impact of microfinance on business income of SMEs in Malaysia


Mohd Ashhari, Zariyawati and Faizal, Diana Rose and Md Nassir, Annuar and Mokhtar, Suraya Hanim (2015) Impact of microfinance on business income of SMEs in Malaysia. In: International Conference on Entrepreneurship, Business and Social Sciences (ICEBSS), 13-14 Aug. 2015, Yogyakarta, Indonesia. (pp. 1-16).


Microfinance facilities in Malaysia began in 1987 with the establishment of Amanah Ikhtiar Malaysia (AIM). Due to the importance of Small Medium Enterprises (SME) in the country’s economic growth, Malaysia government has encouraged the involvement of more financial institutions in providing microcredit products to the public. Further, in 2006 the National SME Development Council (NSDC) approved a complete microfinance institutional framework proposed by Bank Negara Malaysia, comprising banking institutions, development financial institutions (DFIs) and credit cooperatives to generate a sustainable microfinance industry. Today, microfinance facilities are expected to bring vast impacts on development of SMEs in Malaysia. Therefore, the purpose of this study is to investigate the impact of microfinance facilities on business income of SMEs in Malaysia. Results show that microfinance brings essential effect toward business’ income of SMEs in Malaysia. SMEs has utilized the capital that they obtain from microfinance to improve their business.

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Additional Metadata

Item Type: Conference or Workshop Item (Paper)
Divisions: Faculty of Agriculture and Food Sciences
Faculty of Economics and Management
Keywords: Microfinance; Small medium enterprises (SMEs); Microfinance institutions (MFI)
Depositing User: Nabilah Mustapa
Date Deposited: 12 Nov 2019 02:46
Last Modified: 12 Nov 2019 02:46
URI: http://psasir.upm.edu.my/id/eprint/75665
Statistic Details: View Download Statistic

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