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Improving SMEs financing for stronger financial and non-financial performance

Ng , Kim Soon and Ahmad, Abd Rahman and Yau, Chau Poh (2017) Improving SMEs financing for stronger financial and non-financial performance. Advanced Science Letters, 23 (4). pp. 3025-3028. ISSN 19366612

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SMEs play a vital role in the economy of Malaysia. Microfinance provides small loans to the SMEs to enhance their businesses. With the SMEs representing 97.3% (645,136 establishments) of the total business establishments in Malaysia, it is crucial to have a continual investigation on the effects of microfinance have on these enterprises performance. This can expose viable areas of improvement needed for micro-financing activities. This research is aimed to investigate the relationship of microfinance with SMEs performance. The respondents are the SMEs from a district located in the state of Johor, Malaysia. Data were collected using the structured convenient sampling and analyzed with SPSS software. It was found that there is a strong positive relationship between microfinance with both the financial and non-financial SMEs performance (p<0.001). The higher loan amount is significantly related to SMEs performance. It implies that regulators and policymakers should increase the loan amount limit of microfinance to finance the SMEs and in response, these microfinance institutions should increase their loan amount to further enhance SMEs performance.

Item Type: Article
Uncontrolled Keywords: Microfinance; performance; SMEs
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Technology Management and Business > Department of Technology Management
Depositing User: Mr. Mohammad Shaifulrip Ithnin
Date Deposited: 13 Aug 2018 03:14
Last Modified: 13 Aug 2018 03:14
URI: http://eprints.uthm.edu.my/id/eprint/9451
Statistic Details: View Download Statistic

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