Abstract
Most of the Small Medium Enterprises (SME) in Malaysia are microenterprises. To date, the government has played an important role, by giving unwavering support in terms of financial assistance to spurs businesses amongst the microfinance industry. This study highlighted microcredit loan cannot be used as a yardstick to measure one’s success in business. It is highly recommended that continuous business and technical knowledge be given to all borrowers. A Graduation Model can also be implemented in microcredit programme in order to attract more poor people to venture into small business.
Highlights
Microfinance programme in Malaysia have been implemented since 1987 as one of the poverty eradication strategies in the country
It is hope that the Graduation Model could provide a strategy to Malaysian microfinance institutions in reaching out to the poor and attract them to participate in microcredit programme
This agency recognized the needs for knowledge to be given for microentrepreneurs in Langkawi in order to be successful in managing their business. Microfinance institutions such as Amanah Ikhtiar Malaysia (AIM), Yayasan Usaha Maju (YUM) and TEKUN have played a significant role in providing financial assistance to microentrepreneurs in Malaysia
Summary
Microfinance programme in Malaysia have been implemented since 1987 as one of the poverty eradication strategies in the country. Yayasan Usaha Maju (YUM) focus on providing microcredit loans to the poor people of Sabah Each of these microfinance institutions has its own lending systems and has been subsidised by the government since their existence. A study by Hamdan, Fadzim and Wan Sabri (2012) showed that the positive impact of microcredit loans will only occur on the better-off borrowers, who have better financial income prior joining the microcredit programme This leaves the issue of whether the microfinance borrowers in Malaysia are really poor?. Many borrowers allocated a large portion of their income for personal consumption and only a minimal amount for their businesses Many used their businesses to financially support their daily living expenses and made little effort to expand their businesses. This study will focus on these two issues and will provide recommendations to the problems
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
