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An Analysis on the Financing Schemes and Business Strategies Offered by Microfinance and Development Institutions to Micro-entrepreneurs in Malaysia

Norma Md Saad1*

Corresponding author Email: norma@iium.edu.my


Micro-entreprises have been acknowledged to generate income and create employment for millions of people in many countries. Even though micro or small businesses contribute significantly to the economic development and growth of a country, existing literature indicates that there are several challenges that inhibit the small or micro-enterprises from realizing their true potential. Among the constraints faces by the micro or small business owners are lack of capital, marketing skills, and knowledge in strategic or business planning. This study examines the support given to the micro-enterprises by microfinance and government development institutions in Malaysia to assist the micro-entrepreneurs in their businesses. Four microfinance and government development institutions have been selected in this study to analyze the types of financial schemes and business training given to their respective members to assist them in running their business successfully. Based on the findings, there are several suggestion and assistance programs that can be applied by the Perlis State Islamic Religious Council (MAIPs) to ensure the success of their asnaf entrepreneurs (entrepreneurs receiving finacial assistance from MAIPs). Among the services that can be provided is the setting up of the Asnaf Business Centre (ABC) by selecting a suitable and strategic center location, providing assistance in the setting up of businesses, recruiting and selecting suitable asnaf entrepreneurs to operate the business at the ABC, and providing necessaries training and development business program.


Micro-enterprises; Microfinance; Financing Schemes; Business Strategy; Marketing Strategy

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Publish History

Article Publishing History

Received: 29-03-2024
Accepted: 02-05-2024

Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.