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Accessibility to Microcredit by Small- and Medium-Sized Enterprises in Malaysia

Author

Listed:
  • Rafiatul Adlin Hj Mohd Ruslan

    (Islamic Finance and Finance Section, Business School, Universiti Kuala Lumpur, Malaysia)

  • Christopher Gan

    (Department of Financial and Business Systems, Faculty of Agribusiness and Commerce, Lincoln University, New Zealand)

  • Baiding Hu

    (Edwards School of Business, Department of Financial and Business Systems, Faculty of Agribusiness and Commerce, Lincoln University, New Zealand)

  • Nguyen Thi Thieu Quang

    (Faculty of Banking, University of Economics - the University of Danang, Vietnam)

Abstract

This study investigates the determinants of Malaysian SMEs’ accessibility to microcredit, because obtaining bank financing is not popular among small-scale enterprises. We employ logistic regression to analyze the key determinants of accessibility to microcredit among these SMEs. Using survey data on SMEs’ owners/managers in Terengganu, Malaysia in 2016, we find factors influencing microcredit accessibility include married, ethnicity, financial training, household income, age of enterprise, ownership, networking with non-governmental organizations, networking with microfinance institutions, networking with business associations, and distance of business premises to the nearest microcredit provider.

Suggested Citation

  • Rafiatul Adlin Hj Mohd Ruslan & Christopher Gan & Baiding Hu & Nguyen Thi Thieu Quang, 2019. "Accessibility to Microcredit by Small- and Medium-Sized Enterprises in Malaysia," International Journal of Business and Economics, School of Management Development, Feng Chia University, Taichung, Taiwan, vol. 18(3), pages 287-305, December.
    • Handle: RePEc:ijb:journl:v:18:y:2019:i:3:p:287-305
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    References listed on IDEAS

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    More about this item

    Keywords

    access; microcredit; logit model; SMEs; Malaysia;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O53 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Asia including Middle East

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