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

Rafiatul Adlin Hj Mohd Ruslan, Christopher Gan, Baiding Hu and Quang Nguyen
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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

International Journal of Business and Economics, 2019, vol. 18, issue 3, 287-305

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.

Keywords: access; microcredit; logit model; SMEs; Malaysia (search for similar items in EconPapers)
JEL-codes: L26 O53 (search for similar items in EconPapers)
Date: 2019
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