Contemporary Issues in Financing Micro Enterprises in Malaysia: A Qualitative Inquiry from Practitioners Perspective

Isu Kontemporari dalam Pembiayaan Perusahaan Mikro di Malaysia: Siasatan Kualitatif dari Perspektif Pengamal


  • Mohamed Noordeen Mohamed Imtiyaz International Islamic University Malaysia
  • Dzuljastri Abdul Razak International Islamic University Malaysia
  • Salina Kassim International Islamic University Malaysia
  • Nor Azizan Che Embi International Islamic University Malaysia


Micro enterprises, Accessing finance, Challenges in Microfinancing


Micro enterprises are considered as one of the important sections of the Malaysian economy. Micro enterprises play an important role in providing employment opportunities for the workforce of the nation and significantly contributes to the GDP of Malaysia. Despite being an important force in economy, micro enterprises experience several issues and challenges in accessing external finance. This study attempted to in depth explore of contemporary issues and challenges in financing micro enterprises from the perspective of micro financing institutions. The study carried out semi structured interviews with 06 practitioners from leading micro financing institutions in Malaysia. The outcomes of the interviews found that, incomplete documentation from applicants, lack of business ideas and plans, lack of business skills and passion, non-viable businesses and projects and mismanagement of business funds by borrowers are major challenges faced by micro financing institutions on providing financing for micro enterprises. The findings highlight the importance of risk management practices by micro finance institutions and providing necessary training for micro entrepreneurs to impart required business skills. The outcome of this study may enlighten commercial banks, development finance banks, micro financial institutions and policy makers for their strategic planning activities in strengthening micro enterprises.

Perusahaan mikro dianggap sebagai salah satu bahagian penting dalam ekonomi Malaysia. Perusahaan mikro memainkan peranan penting dalam menyediakan peluang pekerjaan untuk tenaga kerja negara dan menyumbang secara signifikan kepada KDNK Malaysia. Walaupun menjadi kuasa penting dalam ekonomi, perusahaan mikro mengalami beberapa isu dan cabaran dalam mengakses kewangan daripada luar. Kajian ini cuba meneroka secara mendalam isu dan cabaran kontemporari dalam pembiayaan perusahaan mikro dari perspektif institusi pembiayaan mikro. Kajian ini menjalankan temu bual separa berstruktur dengan 06 pengamal daripada institusi pembiayaan mikro terkemuka di Malaysia. Hasil temu bual mendapati bahawa, dokumentasi yang tidak lengkap daripada pemohon, kekurangan idea dan rancangan perniagaan, kekurangan kemahiran dan semangat perniagaan, perniagaan dan projek yang tidak berdaya maju dan salah urus dana perniagaan oleh peminjam merupakan cabaran utama yang dihadapi oleh institusi pembiayaan mikro dalam menyediakan pembiayaan untuk perusahaan mikro. Penemuan ini menyerlahkan kepentingan amalan pengurusan risiko oleh institusi kewangan mikro dan menyediakan latihan yang diperlukan untuk usahawan mikro untuk menyampaikan kemahiran perniagaan yang diperlukan. Hasil kajian ini boleh memberi pencerahan kepada bank perdagangan, bank kewangan pembangunan, institusi kewangan mikro dan penggubal dasar untuk aktiviti perancangan strategik mereka dalam memperkukuh perusahaan mikro.


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How to Cite

Mohamed Noordeen Mohamed Imtiyaz, Dzuljastri Abdul Razak, Salina Kassim, & Nor Azizan Che Embi. (2022). Contemporary Issues in Financing Micro Enterprises in Malaysia: A Qualitative Inquiry from Practitioners Perspective: Isu Kontemporari dalam Pembiayaan Perusahaan Mikro di Malaysia: Siasatan Kualitatif dari Perspektif Pengamal. Journal of Management and Muamalah , 12(1), 55 - 73. Retrieved from