Abstract

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.

Full Text
Paper version not known

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 call

Disclaimer: 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.