IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2017-01-73.html
   My bibliography  Save this article

Impact of Microcredit Scheme on the Development of Entrepreneurship Skills among Low Income Households in a Developing Country Context

Author

Listed:
  • Halimah Abdul Manaf

    (Senior Lecturer, School of Government, College of Law, Government and International Studies, Universiti Utara Malaysia, Malaysia.)

Abstract

This study seeks to investigate the extent to which microcredit scheme can predict the development of entrepreneurship skills, particularly on entrepreneurial acumen, competitive of business, advantages of small business and business survival. This quantitative study is based on survey data from 1176 microcredit scheme participants. The data shows that participant involvement in microcredit scheme has a positive relationship with the development of entrepreneurial skills. The study provides insight into how theories from microcredit scheme may help us to understand the nature of entrepreneurial development, particularly among low income households. This article has focused only on the borrowers from microcredit scheme known as Amanah Ikhtiar Malaysia and TEKUN. Hence, future research is recommended to include leadership style and expand the sample of the research to the elite group consisting of chairman/CEO of these two institutions. Emergent results make a contribution to research regarding how microcredit scheme can lead to the development of entrepreneurial skills in the context of developing countries. The findings demonstrate that to sustain in small medium scale business are require essential entrepreneurship skills such as competitive advantage, business survival to try varies type of business before they can be succeeding.

Suggested Citation

  • Halimah Abdul Manaf, 2017. "Impact of Microcredit Scheme on the Development of Entrepreneurship Skills among Low Income Households in a Developing Country Context," International Journal of Economics and Financial Issues, Econjournals, vol. 7(1), pages 583-593.
    • Handle: RePEc:eco:journ1:2017-01-73
    as

    Download full text from publisher

    File URL: http://www.econjournals.com/index.php/ijefi/article/download/3326/pdf
    Download Restriction: no
    File URL: http://www.econjournals.com/index.php/ijefi/article/view/3326/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zoltan J. Acs, 2006. "State of literature on small to medium-size enterprises and entrepreneurship in low-income communities," Proceedings: Community Affairs Dept. Conferences, Federal Reserve Bank of Kansas City, issue Jul, pages 21-54.
    2. Nigel Roome & Han van Kleef, 2007. "Developing capabilities and competence for sustainable business management as innovation: a research agenda," ULB Institutional Repository 2013/14319, ULB -- Universite Libre de Bruxelles.
    3. Martha A. Reavley & Terri R. Lituchy, 2008. "Successful women entrepreneurs: a six-country analysis of self-reported determinants of success – more than just dollars and cents," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 5(3/4), pages 272-296.
    4. Tulus Tambunan, 2007. "Entrepreneurship Development: Smes In Indonesia," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 12(01), pages 95-118.
    5. Keh, Hean Tat & Nguyen, Thi Tuyet Mai & Ng, Hwei Ping, 2007. "The effects of entrepreneurial orientation and marketing information on the performance of SMEs," Journal of Business Venturing, Elsevier, vol. 22(4), pages 592-611, July.
    6. Ranjula Bali Swain & Maria Floro, 2011. "Assessing the Effect of Microfinance on Vulnerability and Poverty among Low Income Households," Journal of Development Studies, Taylor & Francis Journals, vol. 48(5), pages 605-618, June.
    7. Hamid, Syed Abdul & Roberts, Jennifer & Mosley, Paul, 2011. "Evaluating the Health Effects of Micro Health Insurance Placement: Evidence from Bangladesh," World Development, Elsevier, vol. 39(3), pages 399-411, March.
    8. Toriqul Bashar & Salim Rashid, 2012. "Urban microfinance and urban poverty in Bangladesh," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 17(1), pages 151-170.
    9. Imai, Katsushi S. & Arun, Thankom & Annim, Samuel Kobina, 2010. "Microfinance and Household Poverty Reduction: New Evidence from India," World Development, Elsevier, vol. 38(12), pages 1760-1774, December.
    10. Pitt, Mark M & Khandker, Shahidur R & Cartwright, Jennifer, 2006. "Empowering Women with Micro Finance: Evidence from Bangladesh," Economic Development and Cultural Change, University of Chicago Press, vol. 54(4), pages 791-831, July.
    11. Minister of Finance Malaysia, 2016. "The 2016 Budget Speech: Malaysia," Working Papers id:10551, eSocialSciences.
    12. Anderson, C. Leigh & Locker, Laura & Nugent, Rachel, 2002. "Microcredit, Social Capital, and Common Pool Resources," World Development, Elsevier, vol. 30(1), pages 95-105, January.
    13. A. B. Ibrahim & J. R. Goodwin, 1986. "Perceived Causes of Success in Small Business," Entrepreneurship Theory and Practice, , vol. 11(2), pages 41-50, October.
    14. Karl-Heinz Leitner & Stefan Güldenberg, 2010. "Generic strategies and firm performance in SMEs: a longitudinal study of Austrian SMEs," Small Business Economics, Springer, vol. 35(2), pages 169-189, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    2. Dan Brockington & Nicola Banks, 2014. "Exploring the Success of BRAC Tanzania’s Microcredit Programme," Global Development Institute Working Paper Series 20214, GDI, The University of Manchester.
    3. Waqas Umar Latif & Sana Ullah & Wasim Ahmed & Muhammad Umar Sultan & Rana Muhammad Sohail Jafar & Muhammad Tariq & Wang Linping, 2020. "Microcredit and Economic Welfare: Experience of Poor Rural Households from Pakistan," Journal of International Development, John Wiley & Sons, Ltd., vol. 32(6), pages 976-997, August.
    4. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    5. Xiaohua Wang & Meilan Chen & Xi He & Fangfang Zhang, 2018. "Credit Constraint, Credit Adjustment, and Sustainable Growth of Farmers’ Income," Sustainability, MDPI, vol. 10(12), pages 1-15, November.
    6. Khandker, Shahidur R. & Samad, Hussain A., 2014. "Microfinance Growth and Poverty Reduction in Bangladesh: What Does the Longitudinal Data Say?," Bangladesh Development Studies, Bangladesh Institute of Development Studies (BIDS), vol. 37(1-2), pages 127-157, March-Jun.
    7. Akotey, Joseph Oscar & Adjasi, Charles K.D., 2016. "Does Microcredit Increase Household Welfare in the Absence of Microinsurance?," World Development, Elsevier, vol. 77(C), pages 380-394.
    8. Katsushi S. Imai & Raghav Gaiha & Ganesh Thapa & Samuel Kobina Annim, 2013. "Financial Crisis In Asia: Its Genesis, Severity And Impact On Poverty And Hunger," Journal of International Development, John Wiley & Sons, Ltd., vol. 25(8), pages 1105-1116, November.
    9. Christoph P. Kiefer & Pablo Del Río González & Javier Carrillo‐Hermosilla, 2019. "Drivers and barriers of eco‐innovation types for sustainable transitions: A quantitative perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 28(1), pages 155-172, January.
    10. Alhamzah Alnoor & Khai Wah Khaw & XinYing Chew & Sammar Abbas & Zeeshan Zaib Khattak, 2023. "The Influence of the Barriers of Hybrid Strategy on Strategic Competitive Priorities: Evidence from Oil Companies," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 24(2), pages 179-198, June.
    11. Fall, François Seck & Tchakoute Tchuigoua, Hubert & Vanhems, Anne & Simar, Léopold, 2022. "Investigating the unobserved heterogeneity effect on microfinance social efficiency," LIDAM Discussion Papers ISBA 2022010, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    12. Ahrens, Jan-Philipp & Landmann, Andreas & Woywode, Michael, 2015. "Gender preferences in the CEO successions of family firms: Family characteristics and human capital of the successor," Journal of Family Business Strategy, Elsevier, vol. 6(2), pages 86-103.
    13. Lan Thi Thu Phan & Yusuke Jinnai, 2018. "Does health insurance matter in the hospital? New evidence from patient-level medical records in Vietnam," Working Papers EMS_2018_01, Research Institute, International University of Japan.
    14. Asad K. Ghalib & Issam Malki & Katsushi S. Imai, 2012. "Microfinance and its role in household poverty reduction: findings from Pakistan," Global Development Institute Working Paper Series 17312, GDI, The University of Manchester.
    15. Hongyi Mao & Zongjun Wang & Lin Yi, 2021. "Does Entrepreneurial Orientation Lead to Successful Sustainable Innovation? The Evidence from Chinese Environmentally Friendly Companies," Sustainability, MDPI, vol. 13(18), pages 1-19, September.
    16. Luminita Stefania BODEA & Cristian DUTU, 2016. "The Consequences Of Strategic Orientation Of The Firm On Business Performance," Management and Marketing Journal, University of Craiova, Faculty of Economics and Business Administration, vol. 0(2), pages 188-200, November.
    17. Michael Danquah & Abdul Malik Iddrisu & Williams Ohemeng & Alfred Barimah, 2020. "Rural financial intermediation and poverty reduction in Ghana: A micro-level analysis," WIDER Working Paper Series wp-2020-2, World Institute for Development Economic Research (UNU-WIDER).
    18. Coenen, Lars & Díaz López, Fernando J, 2009. "Comparing systems approaches to innovation and technological change for sustainable and competitive economies: an explorative study into conceptual commonalities, differences and complementarities," Papers in Innovation Studies 2009/12, Lund University, CIRCLE - Centre for Innovation Research.
    19. Rui Xue & Gongming Qian & Zhengming Qian & Lee Li, 2021. "Entrepreneurs’ Implicit and Explicit Achievement Motives and Their Early International Commitment," Management International Review, Springer, vol. 61(1), pages 91-121, March.
    20. Leonidas A. Zampetakis & Melina Vekini & Vassilis Moustakis, 2009. "Entrepreneurial orientation, access to financial resources, and product performance in the Greek commercial TV industry," The Service Industries Journal, Taylor & Francis Journals, vol. 31(6), pages 897-910, April.

    More about this item

    Keywords

    Microcredit; Entrepreneurship Development Skills; Malaysia;
    All these keywords.

    JEL classification:

    • Z00 - Other Special Topics - - General - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ1:2017-01-73. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.