Does The Micro Financing Term Dictate The Performance of Micro Enterprises?

Abstract

This paper studies the impact of micro financing or micro credit services towards micro enterprise performance in Malaysia. A conceptual framework has been developed to reveal the essential financial elements involved in this study. The elements include financing or loan tenure, collateral, margin of financing and repayment method. Quantitative data have been analysed using the statistical method of correlation and regression analysis. The purpose of this study is to examine the financial services in micro financing that dictate the performance of micro enterprises in Malaysia. It was a lack of studies towards the performance of micro enterprise when it involve in micro financing or micro credit of financial services. The development of micro enterprise scheme in Malaysia needs strong support from all agencies involved especially the government and MFIs to ensure micro enterprise performance.