Authors : Mazliana Muridan and Patmawati Ibrahim
Abstract: Access to financing is one of important factors for the growth and development of microenterprises to continue their business operations. Malaysian government continues to provide financing for microenterprises by introducing microfinance framework in 2006 by participating several financial institutions. The participating financial institutions are of Banking Institutions (BIs), Development Financial Institutions (DFIs) and Microfinance Institutions (MFIs). The framework identified three strategies are involving the defining of appropriate micro financing parameter to increase the awareness on micro financing and to attract financial institutions by providing solution for micro financing issues. However, there are still have issues related to these micro financing provider in terms of loan requirements and the facilities that have been offered. This study investigates the availability of micro financing sources for microenterprises and the challenges in obtain financing from micro financing provider. Many of microenterprises were obtain financing from banking institutions and followed by microfinance institutions and development financial institutions. Therefore, the banking institutions remain as a main provider of micro financing for microenterprises in Malaysia.
Mazliana Muridan and Patmawati Ibrahim, 2016. Micro Financing for Microenterprises in Malaysia: A Review. International Business Management, 10: 3884-3891.