Small and medium enterprises and their financing patterns: evidence from Malaysia

The contributions of small and medium enterprises (SMEs) to socio-economic developments have been long recognized, in developed and developing countries alike. In this relation, a wide range of support programmes have been introduced and implemented in many countries. Malaysia is not exceptional...

Full description

Bibliographic Details
Main Authors:	Abdullah, Moha Asri, Ab. Manan, Siti Khadijah
Format:	Article
Language:	English
Published:	The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2011
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/23265/ http://irep.iium.edu.my/23265/ http://irep.iium.edu.my/23265/1/moha_asri_abdullh.pdf

id	iium-23265
recordtype	eprints
spelling	iium-232652012-04-26T01:55:14Z http://irep.iium.edu.my/23265/ Small and medium enterprises and their financing patterns: evidence from Malaysia Abdullah, Moha Asri Ab. Manan, Siti Khadijah HG4001 Financial management. Business finance. Corporation finance. The contributions of small and medium enterprises (SMEs) to socio-economic developments have been long recognized, in developed and developing countries alike. In this relation, a wide range of support programmes have been introduced and implemented in many countries. Malaysia is not exceptional to this as various SMEs-oriented policies and SME support initiatives have been nationally initiated. Among the most important areas of support extended to SMEs are financial assistance and credit facilities. Nonetheless, earlier studies indicated that the SMEs’ outreach and accessibility to financial facilities, financing needs and pattern are different than of their larger firm counterpart. In view of this, this paper attempts to examine SMEs; their financing pattern and their accessibility to external debt finance based on 124 SMEs surveyed in Klang Valley, Malaysia. The findings revealed that start up SMEs do not require much external funding for set up, and besides they are commonly deficient of the means to obtain added funds. As SMEs grow and expand, the need for additional fund will arise, thus the external financial needs will start to increase even though the internal funds represent a significant proportion of their available funds. Among the SMEs that have obtained external finance, the amount and tenure of the funds tend to be small and short to medium terms respectively. The finding indicated that the age and assets of SMEs are insignificantly correlated to their accessibility to finance. Thus, the study concludes that a wide variety of financial facilities provided by various agencies and financial institutions lead to greater accessibility to finance SMEs in the country. The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC) 2011 Article PeerReviewed application/pdf en http://irep.iium.edu.my/23265/1/moha_asri_abdullh.pdf Abdullah, Moha Asri and Ab. Manan, Siti Khadijah (2011) Small and medium enterprises and their financing patterns: evidence from Malaysia. Journal of Economic Cooperation and Development, 32 (2). pp. 1-18. ISSN 1308-7800 http://www.sesric.org/publications-jecd-articles.php?jec_id=78
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Abdullah, Moha Asri Ab. Manan, Siti Khadijah Small and medium enterprises and their financing patterns: evidence from Malaysia
description	The contributions of small and medium enterprises (SMEs) to socio-economic developments have been long recognized, in developed and developing countries alike. In this relation, a wide range of support programmes have been introduced and implemented in many countries. Malaysia is not exceptional to this as various SMEs-oriented policies and SME support initiatives have been nationally initiated. Among the most important areas of support extended to SMEs are financial assistance and credit facilities. Nonetheless, earlier studies indicated that the SMEs’ outreach and accessibility to financial facilities, financing needs and pattern are different than of their larger firm counterpart. In view of this, this paper attempts to examine SMEs; their financing pattern and their accessibility to external debt finance based on 124 SMEs surveyed in Klang Valley, Malaysia. The findings revealed that start up SMEs do not require much external funding for set up, and besides they are commonly deficient of the means to obtain added funds. As SMEs grow and expand, the need for additional fund will arise, thus the external financial needs will start to increase even though the internal funds represent a significant proportion of their available funds. Among the SMEs that have obtained external finance, the amount and tenure of the funds tend to be small and short to medium terms respectively. The finding indicated that the age and assets of SMEs are insignificantly correlated to their accessibility to finance. Thus, the study concludes that a wide variety of financial facilities provided by various agencies and financial institutions lead to greater accessibility to finance SMEs in the country.
format	Article
author	Abdullah, Moha Asri Ab. Manan, Siti Khadijah
author_facet	Abdullah, Moha Asri Ab. Manan, Siti Khadijah
author_sort	Abdullah, Moha Asri
title	Small and medium enterprises and their financing patterns: evidence from Malaysia
title_short	Small and medium enterprises and their financing patterns: evidence from Malaysia
title_full	Small and medium enterprises and their financing patterns: evidence from Malaysia
title_fullStr	Small and medium enterprises and their financing patterns: evidence from Malaysia
title_full_unstemmed	Small and medium enterprises and their financing patterns: evidence from Malaysia
title_sort	small and medium enterprises and their financing patterns: evidence from malaysia
publisher	The Statistical, Economic and Social Research and Training Centre for Islamic Countries (SESRIC)
publishDate	2011
url	http://irep.iium.edu.my/23265/ http://irep.iium.edu.my/23265/ http://irep.iium.edu.my/23265/1/moha_asri_abdullh.pdf
first_indexed	2023-09-18T20:35:17Z
last_indexed	2023-09-18T20:35:17Z
_version_	1777409004389007360

Small and medium enterprises and their financing patterns: evidence from Malaysia

Similar Items