Investigating the Effects of Amanah Ikhtiar Malaysia’s Microcredit Programmes on Employment in Rural Malaysia

Mamun, Abdullah Al; Mohiuddin, Muhammad; Mariapun, S.

doi:10.1355/ae31-3h

Cited by 5 publications

(7 citation statements)

References 14 publications

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“…Income generation from business not only supports business activities but also contributes to household income, children's education, and the list goes on (Rahman & Ahmad 2010). Apart from that, microcredit has partly empowered microfinance households successfully by increasing their household income, which indirectly has enhanced their living conditions (Al- Mamun, Mohiuddin & Mariapun 2014). Microfinance services are considered part of the tools in alleviating poverty in Malaysia.…”

Section: Introductionmentioning

confidence: 99%

“…The rate of repayment loan from customers has achieved 98.26%. These strategies have been introduced by AIM with the aim of improving the recipients' socio-economic welfare (Al-Mamun et al 2014).…”

Section: Introductionmentioning

confidence: 99%

“…There are many strategies (policies and programs) that have been adopted to enhance the socio-economic welfare such as the establishments of microfinance institutions in Malaysia. AIM is the only organisation that is available throughout the entire Malaysia and helps the low-income groups to establish their own micro businesses (Al-Mamun et al 2014). Many of the previous studies have shown that microfinance services enable households to solve their economic vulnerability issue and to have better standards of living (Al-Mamun et al 2014).…”

Section: Introductionmentioning

confidence: 99%

“…AIM is the only organisation that is available throughout the entire Malaysia and helps the low-income groups to establish their own micro businesses (Al-Mamun et al 2014). Many of the previous studies have shown that microfinance services enable households to solve their economic vulnerability issue and to have better standards of living (Al-Mamun et al 2014). Therefore, microfinance services tend to have the capacity to uplift the socio-economic welfare among the urban vulnerable households.…”

Section: Introductionmentioning

confidence: 99%

“…However, the specific impact of each microfinance service differs from one study to another. For example, some microfinance services provided by MFI can have positive impact on income and socio-economic welfare, while the others might not have any effect on income or might have negative impact on socio-economic welfare (Al-Mamun et al 2014).…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

Loke¹,

Adebola²,

Ramasamy³

et al. 2020

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The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variable in the analysis. Questionnaires were distributed to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data for this study. We have adopted the quota sampling to collect the data. The results show that most of the services provided by the microfinance institutions including microcredit, micro insurance and training have assisted the urban households to earn more income and enhance their socioeconomic welfare. The recommendations arising from the results of this study are: 1) an environment that promotes cooperation between microfinance institutions and households should be enhanced and 2) well-diversified and dynamic microfinance programs and specific skills-building training programs should be created.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

Loke¹,

Adebola²,

Ramasamy³

et al. 2020

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Differences between firms from the formal sector and the informal sector in terms of growth

Abdallah¹

2017

JEEE

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Purpose Small businesses growth has become an important area of study in the field of entrepreneurship. This paper aims to extend the inquiry by investigating whether there is a significant difference in growth between firms from the formal sector and the informal sector in the least developing countries (LDCs), particularly Tanzania. Design/methodology/approach A survey strategy as well as non-probability sampling are used. The sampling included 50 formal and 61 informal small businesses from the furniture industry. Data collected were evaluated using chi square and compounded annual growth rate (CAGR) techniques. Findings The results indicate that firms from the formal sector do not grow faster than firms from the informal sector. on the contrary, our tests reveal that firms from the informal sector predominantly grow faster than firms from the formal sector. Research limitations/implications The study was conducted in Tanzania which is just one of the 48 LDCs in the world. Second, the literature that is used predominantly applies to developed countries. Third, the field work dependent on the respondent’s perception. Finally, change of measurement scale from five to three is ought to have contributed to mixed findings. Practical implications The overall implications are that external factors like inadequate regulatory tax systems may affect growth of formal small businesses and thus influence market opportunities for informal small businesses. Further, internal factors like inefficiencies of workers from formal enterprises may affect growth and therefore create more opportunities for informal enterprises. Originality/value Exploring differences between firms from the formal sector and the informal sector, and the way five scales were aggregated into three scales in the methodology.

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Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh

et al. 2018

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Microfinance services have emerged as an effective tool for financing microentrepreneurs to alleviate poverty. Since the 1970s, development theorists have considered non-governmental microfinance institutions (MFIs) as the leading practitioners of sustainable development through financing micro-entrepreneurial activities. This study evaluates the impact of micro-finance services provided by MFIs on poverty alleviation. In this vein, we examine whether microfinance services contribute to poverty alleviation, and also identify bottlenecks in micro-finance programs and operations. The results indicate that the micro-loans have a statistically significant positive impact on the poverty alleviation index and consequently improve the living standard of borrowers by increasing their level of income.

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Investigating the Effects of Amanah Ikhtiar Malaysia’s Microcredit Programmes on Employment in Rural Malaysia

Cited by 5 publications

References 14 publications

The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

Differences between firms from the formal sector and the informal sector in terms of growth

Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh

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