Authors : Mohamad Yazis Ali Basah, Nur Masitah Muhamad, Hisham Sabri, Khairil Faizal Khairi, Mahdhir Abdullah and Mazlynda Md Yusuf
Abstract: Micro business plays an essential role for the development of Malaysia. Based on SME annual report year 2011, micro business represents almost 80% of business census. This figure showed the importance of micro business towards the development of country. However, there are many problems associates with micro business such as difficulties to get financing, shortage of capital, owners’ knowledge and experience and others. There are many study conducted on how microbusiness get financing, knowledge of accounting, entrepreneurial behaviour but there is limited study on how credit risk management in microbusiness. Additionally, the main critiques in micro business also about entrepreneurs’ knowledge in term of credit risk management in running the business. This knowledge is very important in order to have a good business performance and sustainability. For that reason the study is conducted in order to explore on how credit risk management knowledge and awareness among the entrepreneurs can be associated with different types of business-sole-proprietorship, partnership and private limited company. The study is conducted by distributing 460 questionnaires among micro business in Negeri Sembilan. The results shows mixed significant results on the relationship between types of business with credit risk awareness and credit risk knowledge. There is a significant difference among types of business on credit risk awareness; however there is no difference for different types of business with knowledge of credit risk management. The findings are very important for the better development and management of microbusiness in Malaysia. It is very useful for financial provider, government and entrepreneur.
Mohamad Yazis Ali Basah, Nur Masitah Muhamad, Hisham Sabri, Khairil Faizal Khairi, Mahdhir Abdullah and Mazlynda Md Yusuf, 2016. The Study on Factor That May Influence Credit Risk Management Knowledge and Awareness among Micro Business in Malaysia. International Business Management, 10: 3787-3792.