Abstract
Eradicating poverty is a fundamental development challenge. Can micro-credit programmes be effective in poverty alleviation? This case study focuses on a replication of the Grameen Bank Approach (GBA) in Malaysia. It reviews access to capital in rural Malaysia, and examines Amanah Ikhtiar Malaysia's membership requirements, types of loan offered, and administration; how rural women use their loans; the major characteristics of the businesses; and the motivation to set up small businesses. The objective is to identify whether providing start-up loans for small businesses in rural areas can be effective in achieving the Malaysian Government's long-term objectives. Similarities between Amanah Ikhtiar Malaysia and the Grameen Bank are discussed. Suggestions are made to enhance small-business development in rural areas.
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