Micro Enterprises In Malaysia Research Articles

Entrepreneurial Specific Factors, Support Factors and Micro enterprises Performance: The Case of Malaysian Microcredit Program

The study's objective is to analyze the influence of several elements related to entrepreneurial-specific factors and support factors on the performance of micro-enterprises. The study sample consisted of a total of 756 micro-entrepreneurs who were involved in two main microcredit programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM) and The Venture Group Economic Fund (TEKUN). The study’s findings, obtained through multiple regression analysis, revealed that factors such as personal entrepreneurial competencies, management practice, microcredit programs and government support exert a significant influence on the performance of micro-enterprises. This finding is consistent with the Resource Base View (RBV) theory which links the importance of internal and external resources as a catalyst for competitive advantage and the performance of a business. The influence of family and commitment to religious principles is less significant. It was associated with the attitude factor of micro-entrepreneurs, who frequently disregard the fundamental principles of religion while making judgments. The impact of family influence on micro enterprises' performance was determined to be negligible. Family members make minimal contributions in terms of finances, energy, or moral support. The formulation of policies is crucial for these insights, which highlight the importance of providing entrepreneurship training and implementing excellent management practices. Additionally, financial support is necessary to promote the growth of micro-enterprises in Malaysia. The government plays a crucial role in facilitating the growth of micro companies by implementing various support programs. An efficient distribution system can minimize the leakage of programs and maximize benefits for the recipients who are intended.

Exploring the success factor of social media marketing strategies among micro-enterprises in Malaysia

Exploring the success factor of social media marketing strategies among micro-enterprises in Malaysia

Exploring the success factor of social media marketing strategies among micro-enterprises in Malaysia

Exploring the success factor of social media marketing strategies among micro-enterprises in Malaysia

Mosque based sustainable financing model for micro enterprises using cash Waqf in Selangor state of Malaysia

Micro enterprises are emerging as an important sector in the economic system of Malaysia by contributing significantly to Gross Domestic Product (GDP) and providing employment opportunities to millions of workers in the country. Despite its importance in contributing towards the enhancement of the well-being of society and the continuous efforts from the government, micro-enterprises in Malaysia, are struggling with several issues. The majority of them are facing difficulties in obtaining financing for high risk. Hence, they face issues in obtaining financing from financial institutions which seek collateral and charge interest or fixed profit rate. Hence, this study proposes a mosque-based sustainable model for financing micro-enterprises using cash waqf with a significant feature of involving mosque-based administration committees (AJK) to intermediate between the Waqf Corporation of Selangor (PWS) (Waqf assets managing body of State Islamic Religious Council of Selangor (MAIS)) as Mutawalli of waqf and micro enterprises at village level. This study proposed a model for the Selangor state as the case study that may help address the financing constraints of micro-enterprises and further improve the well-being of Muslim society by better usage of cash waqf. IIUC Business Review Vol. 7-8, Dec. 2018-19 pp. 9-30

Qard Hasan as a feasible Islamic financial instrument for crowdfunding: its potential and possible application for financing micro-enterprises in Malaysia

PurposeThis paper aims to explore the viability of applying Qard Hasan as an Islamic crowdfunding financial instrument to finance micro-enterprises in Malaysia.Design/methodology/approachThis is a qualitative study in which semi-structured interviews were conducted with several crowdfunding professionals concerning the application of Qard Hasan in Islamic crowdfunding. To realise the purpose of this study, the data is subjected to thematic analysis.FindingsThe finding reveals that though it is often argued that Qard Hasan is basically not a business-oriented instrument, a closer look at the framework reveals the uniqueness and flexibility of this instrument to be adopted as a viable financial instrument for crowdfunding in financing micro-enterprises in Malaysia. Although it is associated with various risks including default risk and the risk of attracting big funds. However, these risks can be managed and overcome by using FinTech mechanisms such as blockchain to carry out due diligence, monitor the project and ensure the repayment in installment.Research limitations/implicationsThe findings of this study may not be suitable for generalisation to all crowdfunding practices as the semi-structured interview is concentrated predominantly in Malaysia. However, it still provides valuable contributions to the Islamic crowdfunding sector in Malaysia between theory and practice.Practical implicationsThe Qard Hasan crowdfunding framework in this study can potentially be applied to help micro-entrepreneurs reach out to financial services within their means. This framework provides means to grow the micro-enterprise sector.Social implicationsQard Hasan crowdfunding will effectively alleviate poverty by creating an avenue of opportunities for business enterprises and close the gap between the wealthy and the poor classes in society, which will eventually bring about more cooperation, more collaboration and cultivate a generous society.Originality/valueIn spite of the fact that Islamic crowdfunding is not a new topic in research, it lacks empirical studies, particularly qualitative analysis. As this study engages with experts in Shari’ah and crowdfunding regarding the potential application of Qard Hasan, it highlights a fresh discussion both in theory and practice.

Modeling the Demand for Islamic Microfinance Services: An Application of PLS-SEM Approach

The access to capital is very crucial for ensuring the financial sustainability of microfinance clients. It is also equally important to determine the demand for microfinance services among the clients. This study aims to identify the factors affecting the demand for Islamic microfinance (IsMF) services among the women micro-entrepreneurs in Malaysia. This study has collected a total of 250 samples from the field survey on women micro-entrepreneurs who are also the clients of Amanah Ikhtiar Malaysia (AIM). In addition, Partial Least Squares (PLS) method used to identify the potential factors (4As) i.e., affordability, accessibility, adequacy and awareness affecting the demand for IsMF. The results show that only “accessibility” has significant and positive relation with the demand for IsMF. Besides, the measurements items of accessibility such as distance of IsMF institution, collateral requirement, guarantor requirement, application procedure and process, repayment method, service efficiency, advise and consultation, and number of IsMF centers are the key factors affecting the demand for IsMF services in Malaysia. This paper provides some insights for the policy makers of Islamic microfinance and recommends that IsMF providers should take accessibility factor into greater consideration for the economic upliftment of women in microenterprises in Malaysia

THE INFLUENCE OF TRAINING ON WOMEN BUSINESS PERFORMANCE IN THE NORTHERN STATES OF MALAYSIA

The purpose of this study is to examine the effect of training on the performance of women’s microenterprises in Malaysia’s northern states that are members of the microfinance organisation Amanah Ikhtiar Malaysia. A model has been created based on comprehensive literature studies. There have been no conclusive conclusions about the effect of training on the success of women’s microenterprises based on prior studies. The originality of this research originates from the significance of information and knowledge for any microentrepreneur or microfinance institution considering the impact of training on performance. This article undoubtedly added to the amount of knowledge about women’s business performance. The data for this study were gathered by a cross-sectional survey of 221 female micro-enterprises using stratified random sampling. The data are examined using descriptive statistics and regression analysis, which are performed using SPSS and SmartPLS. This study revealed that training has a positive and significant effect on the performance of women microenterprises owned and managed by women entrepreneurs in the Northern States of Malaysia. In order to improve the socio-economic condition of low-income women micro-entrepreneurs and their families, development programmes and policies should place a strong emphasis on enhancing entrepreneurs’ ability to recognize and take advantage of knowledge-generating opportunities and improve their ability to generate income. Micro-enterprises run by women must be recognised for the valuable contribution they make in reducing poverty as well as improving their own performance, which calls for building up relational and commitment skills among the women who run them. KEYWORDS: mentoring, microenterprise, microfinance, micro-entrepreneurs, women business performance and poverty alleviation

THE INFLUENCE OF MENTORING ON WOMEN BUSINESS PERFORMANCE: A CONCEPTUAL FRAMEWORK

This study examines the impact of mentoring on the performance of women’s microenterprises in Malaysia’s northern states as well as participants in Amanah Ikhtiar Malaysia. A proposed model has been constructed on the basis of thorough literature studies. Based on the literature, no clear conclusions about the impact of mentoring on the success of women’s microenterprises have been reached. This study’s originality stems from the implications of information and knowledge for any micro-entrepreneur or microfinance institution to consider the impact of mentoring on performance. Aside from that, the paper’s other contribution is the microfinance institution’s moderating function in providing microfinance. This paper will undoubtedly contribute to the body of information on women’s business performance. The data for this study will be collected from 348 female micro-enterprises through a cross-sectional survey with stratified random sampling. Data will be analysed using descriptive statistics and regression using SPSS and SmartPLS. KEYWORDS: mentoring, microenterprise, microfinance, micro entrepreneurs and women business performance

The Effect of Microcredit on the Relationship Between Sustainability Practices and Business Performance of Microenterprises in Malaysia

The Effect of Microcredit on the Relationship Between Sustainability Practices and Business Performance of Microenterprises in Malaysia

Effect of Participation in Development Initiatives on Competitive Advantages, Performance, and Sustainability of Micro-Enterprises in Malaysia

This study assessed the impact of micro-enterprise development initiatives (commonly provide access to financial services and micro-enterprise development training programs to low-income households) upon competitive advantages, performance, and sustainability of micro-enterprises owned and managed by selected low-income households in Peninsular Malaysia. Upon the adoption of cross-sectional design, data were randomly gathered from 300 micro-entrepreneurs residing in four states of Peninsular Malaysia selected from the eKasih database (national poverty data bank). The quantitative data had been collected by holding structured interview sessions with the participants from October until November 2017. The study outcomes revealed that the total amount of economic loan received, the total number of training hours and the number of center meetings/discussion attended exerted significantly positive effects upon competitive advantage, while marital status (control variable) was found to affect competitive advantage in a significantly positive manner. As for micro-enterprise performance, length of participation and number of center meetings/discussions attended as well as marital status as the control variable exhibited significantly positive effects. Meanwhile, the impact of participation duration, total amount of economic loan received, and number of center meetings/discussions attended upon micro-enterprise sustainability seemed to be inconclusive. Additionally, age of entrepreneurs and duration of enterprises establishment (micro-enterprise established) appeared to affect the aspect of sustainability. The findings appear to emphasize on the mixed effects of participation in development initiatives on competitive advantage, performance, and sustainability of micro-enterprises. Hence, this study recommends that the government of Malaysia formulate and adopt more specific strategies and policies in advocating development initiatives to ensure positive progression amongst micro-entrepreneurs and micro-enterprise owners.

THE IMPACT OF MICROFINANCE ON GROWTH OF MICROENTERPRISES (MEs) IN MALAYSIA

This study examined the impact of microfinance criteria on growth of Microenterprises (MEs) in Malaysia. The critical issues arising in the study is the ability of MFIs and business itself to let their business expand and fully utilize the sources remain uncertain. There are ten variables were used in the study which are growth (MEG) as a dependent variable and 6 independent variables (IV) involved, there are Loan Size (LoanSiz), Loan Duration (LoanDur), Loan Repayment (LoanRep), Loan Utilization (LoanUti), Contact with Lender (ContactLen) and Training (Training). A multiple regression method has been used in the study to identify the impact of the growth among MEs in Malaysia. Based on the findings, this surely stated that microfinance criteria meet the significance level and contributes to MEs growth. Hence, the study recommends that MEs must be linked up to the larger financial sources such as SME bank and non-government agencies in terms of financial support. Besides that, Micro finance Institutions should provide a moral support such as entrepreneurial skills in order to enhance their financial management and operation as well as in handling resources efficiently. The policy makers should seek some strategies in the aim to promote MEs in the market penetration. Finally, for the future study, the study suggests to use longitudinal data for future research because this method can monitor changes before and after the joining microfinance schemes. Apart, also can make a comparison between borrower and non-borrower in the aspect of business growth among MEs in Malaysia. As a conclusion, the findings of the study have answered the research objectives.

THE IMPACT OF MICROFINANCE TOWARDS MICROENTERPRISES (MEs) PRODUCTIVITY IN MALAYSIA

This study examined the impact of microfinance criteria on Microenterprises (MEs) productivity in Malaysia. The main issues in this paper is the capability of MFIs to allow the business to fully utilize the sources are ambiguous. There are seven (7) variables have been used in this paper which are Productivity (PROD) as a dependent variable and Six (6) independent variables (IV) involved, there are Loan Size (LoanSiz), Loan Duration (LoanDur), Loan Repayment (LoanRep), Loan Utilization (LoanUti), Contact with Lender (ContactLen) and Training (Training). A multiple regression method has been used in the study to identify the impact of productivity among MEs in Malaysia. Based on the findings, microfinance criteria meet the significance level and contribute to MEs growth. Based on that, the solid and complete questionnaires are only 199 (41.50 %) of AIM and 277 (57.70 %) of TEKUN. The findings revealed that microfinance criteria enhance the MEs growth and productivity and accept most hypotheses in the study. In the aspect of significance, the variable of productivity shows a significant sign contributes to MEs in Malaysia at 5% respectively. Hence, the study recommends that MEs must be linked up to the larger financial sources such as SME bank and non-government agencies in terms of financial support. Besides that, Micro finance Institutions should provide a moral support such as entrepreneurial skills in order to enhance their financial management and operation as well as in handling resources efficiently. The policy makers should seek some strategies in the aim to promote MEs in the market penetration. Finally, for the future study, the study suggests to use longitudinal data for future research because this method can monitor changes before and after the joining microfinance schemes. Apart, also can make a comparison between borrower and nonborrower in the aspect of business growth among MEs in Malaysia. As a conclusion, the findings of the study have answered the research objectives.

The influence of brand image for the online direct selling of a Malaysian micro-enterprise cosmetic brand: the mediating role of brand awareness

In the backdrop of the augmented growth of micro-enterprises in Malaysia, this study examined the effects of credibility opinion, electronic word-of-mouth (e-WOM), and social interaction on brand a...

Cash waqf model for micro enterprises’ human capital development

Purpose The present paper aims to propose a viable alternative model for human capital development (HCD), termed as the integrated cash waqf micro enterprises investment (ICWME-I) model, which is expected to contribute to the development of micro enterprises in Malaysia. Design/methodology/approach This is a conceptual paper for the development of the ICWME-I model. It is purely qualitative in nature, using content analysis. It comprehensively reviews the literature related to HCD issues faced by micro enterprises and existing studies related to cash waqf (Islamic endowment) to construct the ICWME-I model. Findings The proposed ICWME-I model is specially designed for HCD of micro enterprises. It is an appropriate initiative to upgrade micro enterprises through HCD programmes by ensuring proper utilization of cash waqf funds to build modern training centres at subsidized costs with state-of-the-art facilities. The training centres would subsidize the participation fees of micro enterprises and provide them with facilities to undertake education and training programmes, as well as other kinds of activities for upgrading, improving and enhancing human capital capacity and skills of micro enterprises. The potential challenges of the ICWME-I model are also highlighted in this study. Research limitations/implications This paper attempts to construct the ICWME-I model based on an extensive review of literature related to micro enterprises, cash waqf and HCD. Among its major limitations is the fact that the ICWME-I model is not empirically validated and tested in this research. This can be carried out in future studies. Practical implications The present study could have an enormous impact on micro entrepreneurs via HCD programmes. The most important impact would be on government budgets, as this ICWME-I model is expected to generate its own funds from cash waqf for micro enterprises’ HCD. Originality/value This paper brings forward an original and viable model to develop human capital for micro enterprises development. This model involves the building of training centres using cash waqf raised from donors.

Entrepreneurs’ Competencies and Competitive Advantages: A Study on Malaysian Microenterprises

Considering the significance of relevant competencies towards business success and the dependency of socio-economical vulnerable micro-entrepreneurs on their enterprise income, this study examined the effect of entrepreneurs’ competencies (i.e., opportunity recognizing competency, strategic competency, organizing competency, relationship competency, conceptual competency and commitment competency) on the competitive advantage of microenterprises in Malaysia. This study adopted a cross-sectional research design and collected quantitative data from 300 randomly selected respondents from Peninsular Malaysia. The findings revealed significant positive effects of organizing and commitment competency on the competitive advantage with a significantly negative effect of relationship competency on the competitive advantage. Apart from enriching the current literature, this study offers significant policy implications for the government and socio-developmental organizations in Malaysia for improving the micro-entrepreneurship and uplifting large low-income groups from poverty.

Microcredit and Microenterprises Performance in Malaysia

This study examined the effects of microcredit provided by Amanah Ikhtiar Malaysia (AIM) on the performance of microenterprises by the participants in Malaysia. This study adopted a cross-sectional design and the quantitative data were collected from a total of 387 borrowers of AIM. The findings revealed significantly positive correlations between microenterprises performances and economic loan, number of training programs, as well as hours of training programs. The multiple regression analysis further confirmed the positive and statistically significant effects of economic loan and number of training programs on the performance of microenterprises by the participants of AIM in Malaysia. However, the length of participation shows a negative effect on microenterprise performance. These findings highlighted the positive effect of microcredit on microenterprises performance such as access to credit, microenterprises' development training programs, and negative effects on the psychological aspect of the entrepreneurs by the microcredit availability and long-term credit. The government and development organisations in Malaysia should focus on designing fixable and diversified credit schemes with a watchful eye on the duration of the loan and training programs for the microenterprises in Malaysia.

EXPLORING MICRO ENTERPRISES’ BUSINESS PERFORMANCE THROUGH ENTREPRENEURIAL ORIENTATION, KNOWLEDGE SHARING AND INNOVATION

Micro Enterprises form the majority of business establishments in Malaysia. They represent more than 90 percent of such establishments in the country. Interestingly, most studies have shown that entrepreneurial orientation (EO) is an important element of entrepreneurship for micro enterprises. Hence, in the era of robustness of technology and explosion of knowledge, the role of knowledge sharing and innovation should be incorporated in investigating the performance of micro enterprises. This paper aims to explore the business performance of selected micro enterprises in Malaysia. One hundred and six micro enterprises owners took part in the survey. Partial Least Square was used to analyze the data. The results show that while entrepreneurial orientation on its own has no direct impact on business performance, the practice of knowledge sharing and innovation practices does. Entrepreneurial orientation and knowledge sharing have shown a strong impact on innovation where innovation reflects the impact of all variables on business performance. The study has also shown that knowledge sharing and innovation are being practiced actively in micro enterprises, thus providing a good platform for future research. 
 Keywords: Entrepreneurial orientation, knowledge sharing, innovation, business performance, micro enterprises

PARTIAL LEAST SQUARE ANALYSIS ON MICRO ENTERPRISES’ INTELLECTUAL CAPITAL AND PERFORMANCE: THE MEDIATING EFFECT OF TACIT KNOWLEDGE SHARING

Micro enterprises formed the majority of business establishments in Malaysia and play an important role in the business ecosystem. There are numerous studies of intellectual capital on large organizations and small and medium enterprises, however no study has been carried out on micro enterprises. The findings of the partial-least square analysis of one hundred and six micro enterprises found that intellectual capital has a significant relationship to organizational performance. In addition, the relationship between intellectual capital and organizational performance was significantly influenced by tacit knowledge sharing. In particular, tacit knowledge sharing proves to be extremely relevant when it comes to reinforcing the intellectual capital on the performance of micro enterprises in Malaysia. Limitations and implications for future studies are discussed.

A Review of Financing Issues Among Microenterprises in Malaysia

A Review of Financing Issues Among Microenterprises in Malaysia

Entrepreneurial Leadership, Performance, and Sustainability of Micro-Enterprises in Malaysia

This study probed into the impact of entrepreneurial leadership dimensions (i.e., responsibility, accountability, analytical thinking, and emotional intelligence) on the performance and sustainability of micro-enterprises in Kelantan, Malaysia, through the lens of resource-based view (RBV) theory. Through the implementation of a cross-sectional design, data were randomly gathered from 403 micro-entrepreneurs whose names appeared in the list of low-income households registered under “Majlis Amanah Rakyat” Kelantan and “Majlis Agama Islam Dan Adat Istiadat” Kelantan. The quantitative data were collected during structured interview sessions held between September and December 2017. The findings of the study revealed that the aspects of responsibility, accountability, and emotional intelligence exhibited significantly positive effects on micro-enterprise performance; while accountability, analytical thinking, and micro-enterprise performance displayed a significantly positive influence on sustainability among micro-enterprises owned by low-income households in Kelantan, Malaysia. The outcomes further portrayed a significant mediating effect of micro-enterprise performance on the correlations of responsibility, analytical thinking, and emotional intelligence with micro-enterprise sustainability. The outcomes of this study extend the scope of RBV theory and simultaneously enhance our understanding pertaining to leadership, performance, and sustainability interplay, particularly within the context of micro-enterprises in emerging economies. As such, it is recommended that the government of Malaysia formulate and to adopt policies that promote varied entrepreneurial-leadership-related traits among budding micro-entrepreneurs, which may not only boost sustainability performance among firms, but also encourage low-income household heads to actively engage in more entrepreneurial activities.