Examining the Critical Factors Affecting the Repayment of Microcredit Schemes in Amanah Ikhtiar Malaysia (AIM) in Malaysia

Wahab, Sazali Abdul; Mamun, Abdullah Al; Malarvizhi, C. A.; Mariapun, S.

doi:10.5539/ibr.v4n2p93

Cited by 5 publications

(5 citation statements)

References 13 publications

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“…On the other hand, it is to guarantee repayment. This result is consistent with the findings of Al‐Mamun et al (2011) who showed that microfinance increased household monthly income. Similarly, Murdoch and Haley (2001) showed the direct correlation between improving income and improving the power of action generated by microcredit, improving the wellbeing caused by access to education, care, family planning, and better sanitation.…”

Section: Resultssupporting

confidence: 93%

“…To address this, in our study, we employed Boakye (2012) measures to enhance the validity of our sample. We compared the key findings to relevant literature, Al‐Mamun et al (2011), to assess their alignment with existing data. Additionally, we implemented the strategy of setting an arbitrary quotas of three to promote balanced participation process and prevent dominance by specific groups.…”

Section: Methodsmentioning

confidence: 99%

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The role of microfinance in improving living standards: Evidence from Tunisia

Miled,

Omri

2024

Poverty & Public Policy

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The main objective of this article is to investigate the effects of microfinance on poverty alleviation and improving living standards of poor households in Tunisia. To the best of our knowledge, this is the first study that analyzes such topics in the Tunisian context. We employed Logistic regressions (both binomial and ordered logit) and Fuzzy‐set qualitative comparative analysis (fsQCA) to examine the consequences of microfinance usage. Based on complexity theory, fsQCA contributes to the literature by generating a richer understanding of complex poverty phenomena. Overall, we find a positive and significant relationship between the amount of microcredit an individual receives and the improvement of the living standards of beneficiaries. The improvements mainly relate to increased income, improved health care, and more consistent attendance at school. This study shows the potential for microfinance to reduce poverty in Tunisia, especially in the period following the Arab spring.

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Section: Resultssupporting

confidence: 93%

Section: Methodsmentioning

confidence: 99%

The role of microfinance in improving living standards: Evidence from Tunisia

Miled,

Omri

2024

Poverty & Public Policy

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“…AIM solely aids women with a gross monthly income below the poverty line income, which encompasses households who live at or below the Malaysia poverty line (Mokhtar & Ashhari, 2015). Roughly 82% of the total poor and hardcore poor households in Malaysia receive financial services from AIM (Wahab et al, 2011). AIM focuses on deprived women who are unable to access financial services due to their inability to provide required documents (Al-Shami et al, 2020).…”

Section: Advantages Of Choosing Islamic Microfinance Institutionmentioning

confidence: 99%

“…These programs include basic accounting, entrepreneurship fundamentals, financial management, business communication, and member development programs (Al Mamun & Ekpe, 2016). Training is important for AIM as research has indicated that an increase in training leads Open Journal of Business and Management to an improvement in repayment performance (Wahab et al, 2011).…”

Section: Training Provided By Islamic Microfinance Institutionmentioning

confidence: 99%

The Role of Islamic Microfinance Institution in Women Micro-Entrepreneurs Sustainability during Covid-19 in Johor

Liew,

Yusoff

2023

OJBM

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The COVID-19 pandemic, a global health crisis, has had a severe negative impact on society and economy globally. All businesses activities are unable to conduct except the essential services and natural resource sectors. Micro-entrepreneurs impact the most where their business size and scale is relatively small. Therefore, the objective of this study is to investigate the support provided by Islamic microfinance institutions towards women micro-entrepreneurs sustainability during COVID-19 in Johor. This study is conducted using a qualitative approach that is cantered around the perspectives of participants. A small sample size is used to explore a particular issue in depth. A semi structured interview and case study with 12 women micro-entrepreneurs from the food and beverages sector under Islamic microfinance institution, Amanah Ikhtiar Malaysia (AIM) in Johor is carried out. The result shows that Islamic microfinance institutions play an important role in supporting women micro-entrepreneurs sustainability during COVID-19. This study would contribute towards better practice for policy makers with recommendations provided by participants.

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“…al., 2016). Another study by Wahab et al (2011) also examined the determinants of loan payment and concluded that the probability of default was influenced by the gender of the borrower. In terms of age, younger entrepreneurs may have more energy, more initiative, and more risk-taking tendencies, and this may lead to greater project success (Wahab et.…”

Section: Theory Developmentmentioning

confidence: 99%

Impact of Microfinance Institutions for Female Entrepreneurs: Evidence from Philadelphia, Pennsylvania

Yeldell

2018

SSRN Journal

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Microfinance encompasses a broad range of financial services targeted at low income individuals seeking to build income and assets. There has been extensive research on the role of microfinance institutions (henceforth "MFIs") in developing countries on poverty reduction, particularly for female clients. In contrast, research on MFIs operating within the United States is more limited. This study seeks to fill this gap in the literature and is one the first to focus on the impact of an MFI on female clients in the US using data from a Philadelphia-based MFI. The study examined the factors affecting outcomes of female entrepreneurs as compared to their male counterparts measured by changes in financial capability, repayment history, household incomes, and sustainability. Although the study does not statistically support the existence of differences between the outcomes for female and male clients of the MFI, the data does indicate positive outcomes for the clients. The business survival rates on average are above national indicators. The personal credit scores for MFI clients reflect improvement subsequent to receiving loans. This study utilized survey instruments and a focus group study to identify barriers to the success of female entrepreneurs. Noted barriers such as lack of access to capital, lack of relevant business knowledge, and sexism provide a foundation for future research study.

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Examining the Critical Factors Affecting the Repayment of Microcredit Schemes in Amanah Ikhtiar Malaysia (AIM) in Malaysia

Cited by 5 publications

References 13 publications

The role of microfinance in improving living standards: Evidence from Tunisia

The role of microfinance in improving living standards: Evidence from Tunisia

The Role of Islamic Microfinance Institution in Women Micro-Entrepreneurs Sustainability during Covid-19 in Johor

Impact of Microfinance Institutions for Female Entrepreneurs: Evidence from Philadelphia, Pennsylvania

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