Microloan approval and its impact on SMEs performance in Malaysia
There is no doubt that small and medium-sized enterprises (SMEs) are important to countries worldwide. SMEs’ contributions in recent years have dramatically and continuously increased various nations’ gross domestic products. Therefore, the growth of SMEs is forecast to continue to grow yearly. With...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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American Scientific Publishers
2018
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| Online Access: | http://psasir.upm.edu.my/id/eprint/74973/1/Microloan%20approval%20and%20its%20impact%20on%20SMEs%20performance%20in%20Malaysia.pdf |
| _version_ | 1796979784680472576 |
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| author | Wen, Tan Pei Mohd Ashhari, Zariyawati Faizal, Diana Rose Mokhtar, Suraya Hanim |
| author_facet | Wen, Tan Pei Mohd Ashhari, Zariyawati Faizal, Diana Rose Mokhtar, Suraya Hanim |
| author_sort | Wen, Tan Pei |
| collection | UPM |
| description | There is no doubt that small and medium-sized enterprises (SMEs) are important to countries worldwide. SMEs’ contributions in recent years have dramatically and continuously increased various nations’ gross domestic products. Therefore, the growth of SMEs is forecast to continue to grow yearly. With sufficient finance, the development of SMEs is believed to grow considerably, and consequently boost Malaysia’s economy. In addition to acquiring funds from relatives, SMEs have the opportunity to obtain microloans from microfinance institutions to establish or increase their capital, which further helps them to expand their business. Therefore, the aim of this study is to examine whether SMEs’ characteristics influence microloan approval and the impact that microloan has on business performance of SMEs. Results from primary data show that microloan approval is influenced by SMEs characteristics and microloans do have an impact on SMEs’ performance. We suggest that loan approval to SMEs can improve business performance, especially together with the existence of business support such as technical training and management training. |
| first_indexed | 2024-03-06T10:14:00Z |
| format | Article |
| id | upm.eprints-74973 |
| institution | Universiti Putra Malaysia |
| language | English |
| last_indexed | 2024-03-06T10:14:00Z |
| publishDate | 2018 |
| publisher | American Scientific Publishers |
| record_format | dspace |
| spelling | upm.eprints-749732019-11-28T02:06:41Z http://psasir.upm.edu.my/id/eprint/74973/ Microloan approval and its impact on SMEs performance in Malaysia Wen, Tan Pei Mohd Ashhari, Zariyawati Faizal, Diana Rose Mokhtar, Suraya Hanim There is no doubt that small and medium-sized enterprises (SMEs) are important to countries worldwide. SMEs’ contributions in recent years have dramatically and continuously increased various nations’ gross domestic products. Therefore, the growth of SMEs is forecast to continue to grow yearly. With sufficient finance, the development of SMEs is believed to grow considerably, and consequently boost Malaysia’s economy. In addition to acquiring funds from relatives, SMEs have the opportunity to obtain microloans from microfinance institutions to establish or increase their capital, which further helps them to expand their business. Therefore, the aim of this study is to examine whether SMEs’ characteristics influence microloan approval and the impact that microloan has on business performance of SMEs. Results from primary data show that microloan approval is influenced by SMEs characteristics and microloans do have an impact on SMEs’ performance. We suggest that loan approval to SMEs can improve business performance, especially together with the existence of business support such as technical training and management training. American Scientific Publishers 2018-07 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/74973/1/Microloan%20approval%20and%20its%20impact%20on%20SMEs%20performance%20in%20Malaysia.pdf Wen, Tan Pei and Mohd Ashhari, Zariyawati and Faizal, Diana Rose and Mokhtar, Suraya Hanim (2018) Microloan approval and its impact on SMEs performance in Malaysia. Advanced Science Letters, 24 (7). 5466 - 5469. ISSN 1936-6612; ESSN: 1936-7317 https://www.ingentaconnect.com/content/asp/asl/2018/00000024/00000007/art00167 10.1166/asl.2018.11758 |
| spellingShingle | Wen, Tan Pei Mohd Ashhari, Zariyawati Faizal, Diana Rose Mokhtar, Suraya Hanim Microloan approval and its impact on SMEs performance in Malaysia |
| title | Microloan approval and its impact on SMEs performance in Malaysia |
| title_full | Microloan approval and its impact on SMEs performance in Malaysia |
| title_fullStr | Microloan approval and its impact on SMEs performance in Malaysia |
| title_full_unstemmed | Microloan approval and its impact on SMEs performance in Malaysia |
| title_short | Microloan approval and its impact on SMEs performance in Malaysia |
| title_sort | microloan approval and its impact on smes performance in malaysia |
| url | http://psasir.upm.edu.my/id/eprint/74973/1/Microloan%20approval%20and%20its%20impact%20on%20SMEs%20performance%20in%20Malaysia.pdf |
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