The impact of macroeconomic variables on SMEs in Malaysia

Halim, Faridah Abdul; Malim, Muhammad Rozi; Derasit, Zuraidah; Rani, Ruzanita Mat; Rashid, Siti Norbaya Mohd

doi:10.1088/1742-6596/890/1/012138

Cited by 6 publications

(6 citation statements)

References 5 publications

(5 reference statements)

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“…Halim et al ( 2017) conclude that interest rates and inflation significantly affect the development of MSMEs [14]. Interest rates have a favorable association with MSMEs' development, whereas inflation has a negative relationship with MSMEs' development.…”

Section: Literature Reviewmentioning

confidence: 99%

Determinants of Micro, Small and Medium Enterprise in West Java Province

Supandi¹,

Astuti²,

Murti³

2022

Proceedings of the First Multidiscipline International Conference, MIC 2021, October 30 2021, Jakarta, Indonesia

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In 2019, micro, small, and medium enterprises (MSMEs) in West Java contributed 13.24% to national economic growth. This has a positive impact on poverty reduction and employment. Given the importance of MSMEs, a study was conducted to analyze the influencing factors of the growth of MSMEs. The research method used in this study is the ordinary least square with multiple linear regression on the data panel. The independent variables are infrastructure, MSMEs investment growth, gender empowerment index, and inflation; while the dependent variable is MSMEs growth. The study results show that: (1) there is a significant effect of infrastructure, MSMEs investment growth, gender empowerment index, and inflation simultaneously on the growth of MSMEs; (2) there is no effect between infrastructure and the growth of MSMEs; (3) There is an influence of MSME investment growth on MSMEs growth; (4) The gender empowerment index has a considerable impact on MSMEs' development; and (5) inflation has a big impact on MSMEs' growth. The study's findings are projected to give an overview of how to boost MSMEs' growth during the Covid-19 epidemic by taking into account increased MSMEs investment, the women empowerment index, and inflation management.

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Section: Literature Reviewmentioning

confidence: 99%

Determinants of Micro, Small and Medium Enterprise in West Java Province

Supandi¹,

Astuti²,

Murti³

2022

Proceedings of the First Multidiscipline International Conference, MIC 2021, October 30 2021, Jakarta, Indonesia

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“…Previous studies such as Adenikinju & Olofin (2000) found a negative effect on economic policy and growth in the manufacturing sector of the 17 African countries studied. Also, Halim et al (2017) who studied SMEs in Malaysia on economic growth, utilizing multiple regression analysis, found positive relationship between both variables. Finally, Bekeris (2012) examined impact of macroeconomic indicators upon SME's Profitability and using various measures found a statistical relationship between the variables.…”

Section: Introductionmentioning

confidence: 94%

Selected Economic Policies on the Growth of Small and Medium Enterprises in Nigeria

Udoh,

Inim,

Emiesefia

et al. 2023

OJBM

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In Nigeria, economic policy should set the parameters in the economic system of the country, which should constitute the key part of the economic practice thereby creating an environment affecting the development and functioning of either collective or individual Small and Medium Enterprises (SMEs) operators and thus logically affecting the sector(s) of the economy. This work examines the effect of selected economic policies on the growth of SMEs in Nigeria. Notwithstanding the attention placed on monetary, fiscal and trade policies, in the overseeing of the economy, the SMEs sector all encompassing, Nigerian economy particularly SMEs are up until the present time of this study not growing as expected. The time frame was from 1986 to 2017, a thirty-two-year study. Research design employed was ex-post facto and a population of seventy-two thousand eight hundred and thirty-eight (72,838) SMEs in Nigeria were used. The sample size was the entire 72,838 SMEs of which the study relied on reports from Central Bank Statistical Bulletin and SMEDAN, thereby employing the Error Correction Mechanism (ECM) tool of analysis to analyze the time series data. The study found that economic policy (proxies: monetary policy, fiscal policy and trade policy) had no positive significant effect on the growth of SMEs in Nigeria. Therefore, the study recommends that economic policy should be design and formulated in such a way that the goals the SMEs want to achieve through monetary, fiscal and trade policies should be realistic and feasible in terms of growth.

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“…It analyzes the forces which determine economic growth of a country and explains how to reach the highest state of economic growth and sustain it and also how to bring stability in price level and analyze fluctuations in business activities. It suggests policy measures to control inflation and deflation [13][14][15][16]. Various studies have identified macroeconomic indicators to include gross domestic product (GDP), consumer price index, currency exchange rate, and interest rate [14].…”

Section: Introductionmentioning

confidence: 99%

“…Various studies have identified macroeconomic indicators to include gross domestic product (GDP), consumer price index, currency exchange rate, and interest rate [14]. Halim (2017) [15] identified macroeconomics as dependent and independent variables. The dependent variable is the GDP and the independent variable includes exchange rate, interest rate, and inflation.…”

Section: Introductionmentioning

confidence: 99%

“…Unemployment rate, and Real GDP and monetary factor which is measured by Exchange Rates changes as significant macroeconomic variables for the performance of firms in United Kingdom [20]. Therefore, it is apparent that the behavior of the macroeconomic variables plays a major part in determining the nation's backbone in surviving the economic downturn [15]. One of the constraints to trade credit policy in the Ghanaian construction industry is the unstable nature of macroeconomic variables [21].…”

Section: Introductionmentioning

confidence: 99%

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Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

Asamoah

Baiden

Nani

2019

Journal of Engineering

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Cost of building is usually influenced by several factors; one of such is frequent changes in macroeconomic variables. The purpose of this study is to establish the need to conduct further research on the impact of changes in macroeconomic components on the cost of public educational buildings. The study adopted the qualitative research approach; purposive and snowballing techniques were used in selecting respondents. Questionnaire survey was used to obtain primary data from respondents who were Quantity Surveyors and Estimators. The questionnaires were analyzed through descriptive analysis. Secondary data was obtained through literature review. The study revealed that respondents were satisfied with cost management procedures and practices and mainly relied on cash flow, progress reporting, and project cost control methods as means of monitoring and managing project cost. Relative important index, prime rate, interest rate, and inflation were some of the macroeconomic components that professionals considered having impact on cost. The respondents also recommended further studies on the impact of macroeconomic variability on cost of public buildings.

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The impact of macroeconomic variables on SMEs in Malaysia

Cited by 6 publications

References 5 publications

Determinants of Micro, Small and Medium Enterprise in West Java Province

Determinants of Micro, Small and Medium Enterprise in West Java Province

Selected Economic Policies on the Growth of Small and Medium Enterprises in Nigeria

Towards the Establishment of Relationship between Macroeconomic Indicators and Cost of Public Educational Buildings in Ghana

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