The importance of micro financing to the microenterprises development in Malaysia’s experience

• Main Authors: Nawai, Norhaziah, Mohd Shariff, Mohd Noor
• Format: Article
• Language: English
• Published: Canadian Center of Science and Education 2011
• Subjects: HB Economic Theory
• Online Access: http://repo.uum.edu.my/18083/1/ASS%207%2012%202011%20226-238.pdf; http://repo.uum.edu.my/18083/; http://doi.org/10.5539/ass.v7n12p226

This paper aims to explore the importance of micro financing to the development of micro-enterprises (MEs) in Malaysia.MEs play a vital role in developing Malaysian economy.MEs accounted about 80% of the total Small and Medium Enterprises (SMEs) and 78.7% of business establishments in Malaysia.However, MEs face numerous problems such as lack of marketing, technology and credit facility.Therefore, micro financing is a choice to the MEs because it provides an easy, faster and convenient financing facility. The paper examines the microfinance programs offer to the MEs in Malaysia.The paper concludes that a small credit can help micro entrepreneurs to boost up their business.