Economic Impact of Development Initiatives on Low-Income Households in Kelantan, Malaysia

Mustapa, Wan Nurulasiah binti Wan; Mamun, Abdullah Al; Ibrahim, Mohamed Dahlan

doi:10.3390/socsci7070118

Cited by 10 publications

(6 citation statements)

References 36 publications

(46 reference statements)

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“…Microfinance institutions also offer non-financial facilities, particularly development training programs that are critical to achieving household socio-economic outcomes [26]. Literature indicates that training programs are an effective source of knowledge and these significantly influence business performance.…”

Section: Microfinance Non-financial Servicesmentioning

confidence: 99%

The Impact of Microfinance Services on Malaysian B40 Households’ Socioeconomic Performance: A Moderated Mediation Analysis

Abdullah¹,

Zainudin²,

Ismail³

et al. 2022

IJSDP

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This research examines the influence of microfinance services on the socioeconomic performance of Malaysian B40 households, which are considered vulnerable communities in Malaysia. Mainly, it explores the mediating role of entrepreneurial competencies and financial management practices in the relationship of microfinance services with households’ economic well-being, entrepreneurial success, and social wellbeing. Likewise, this research also examines the moderating role of microfinance institutions’ service efficiency in the success of microfinance services to improve households’ socioeconomic outcomes. The responses were collected from the participants of Amanah Ikhtiar Malaysia, the largest microfinance institution serving the low-income population of Malaysia. Employing the structural equation modelling approach, results show that microfinance financial services and non-financial services positively influence households’ socioeconomic performance through entrepreneurial competencies and financial management practices. On the other hand, microfinance financial services are also found to have significant direct influence on households’ socioeconomic performance. Further, results also indicate that microfinance institutions’ service efficiency positively moderates the influence of financial services to improve households’ socioeconomic performance. This is novel research that introduces human capital development as an underlying mechanism in the household economic portfolio model, suggesting that microfinance interventions develop human capabilities among their participants, which further assist them in the efficient management of financial and business affairs, thus, improving socioeconomic outcomes.

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Section: Microfinance Non-financial Servicesmentioning

confidence: 99%

The Impact of Microfinance Services on Malaysian B40 Households’ Socioeconomic Performance: A Moderated Mediation Analysis

Abdullah¹,

Zainudin²,

Ismail³

et al. 2022

IJSDP

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“…This shows that that literacy rates among the fishermen population in Muda river basin is high (91.3%) and the highest-level education in the communities is Form 6 or Diploma. According to Mustapa et al (2018), poverty in Malaysia is based on the PLI, poverty line income (Malaysian absolute poverty line), which is a quantitative money metric measure. In Peninsular Malaysia, PLI for the poor in the rural area is RM870, whereas PLI for hard-core poor is RM 580 (Table 03).…”

Section: Educational Level Of Inland Fishermenmentioning

confidence: 99%

Socio-Economic And Livelihood Assessment Of Inland Fishermen In Muda River Basin

Mei¹

2020

European Proceedings of Social and Behavioural Sciences

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“…Furthermore, Barney (1991) suggests that a firm’s value creation process solely lies in the owner-manager’s ability in acquiring the resources. Therefore, fitting into the Barney’s RBV and based on prior studies that focused on micro-entrepreneurship within a similar context, it can be assumed that entrepreneurial competencies of owner-managers of firms that identify and acquire resources can lead to superior firm performance, wherein such required competencies are triggered by relevant training programs (Zainol et al , 2017; Mustapa et al , 2018a, 2018b; Al Mamun et al , 2018).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Accordingly, an empirical study focusing on women micro-entrepreneurs in Malaysia by Zainol et al (2017) found that the participants of development programs, who received training apart from financial assistance, have higher level of entrepreneurial competencies. In a more recent study that involved Kelantanese micro-entrepreneurs, Mustapa et al (2018a) discovered that the number of hours spent on training programs positively affected household income, while negatively influenced their level of economic vulnerability. Particularly in light of microenterprises, training sessions, total number of training hours received, and center meetings or discussions attended displayed a significant impact on firm performance (Mustapa et al , 2018b).…”

Section: Introductionmentioning

confidence: 99%

Micro-enterprise development training and entrepreneurial competencies among low-income households in Malaysia

Mamun

Muniady

Fazal

et al. 2019

APJIE

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Purpose Low-income households form a significant portion of the Malaysian population. To improve the socio-economic condition of low-income households, development organizations in Malaysia offer a wide range of development trainings, discussions and group or center meetings. This study aims to examine the impact of enterprise development training programs on entrepreneurial competencies among Peninsular Malaysia microentrepreneurs. Design/methodology/approach Adopting a cross-sectional design, the authors collected data from 300 randomly selected microentrepreneurs from the list of microentrepreneurs provided by eKasih (the National Poverty Data Bank), across four states of Peninsular Malaysia. Quantitative data were collected through structured interviews with the respondents from October to November 2017. Findings The findings revealed that enterprise development training programs significantly affected three of six entrepreneurial competencies (i.e. opportunity recognition competency, organizing competency and relationship competency). These findings highlight the importance of enterprise development training programs towards microentrepreneurs in increasing their competencies. Originality/value Through its insights, the study enriches the understanding of low-income communities in emerging economies, while offering significant practical implications. Based on findings, it is recommended that development organizations should therefore continue the current microenterprise development training programs. With improved entrepreneurial competencies, microentrepreneurs can thrive amidst competition yet sustaining business performance.

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Economic Impact of Development Initiatives on Low-Income Households in Kelantan, Malaysia

Cited by 10 publications

References 36 publications

The Impact of Microfinance Services on Malaysian B40 Households’ Socioeconomic Performance: A Moderated Mediation Analysis

The Impact of Microfinance Services on Malaysian B40 Households’ Socioeconomic Performance: A Moderated Mediation Analysis

Socio-Economic And Livelihood Assessment Of Inland Fishermen In Muda River Basin

Micro-enterprise development training and entrepreneurial competencies among low-income households in Malaysia

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