Investigating the Effect of Microcredit on Microenterprise Income in Peninsular Malaysia

European Journal of Economics, Finance and Administrative Sciences, No. 29, pp. 122-132, 2011

11 Pages Posted: 19 Oct 2011

See all articles by Abdullah Al Mamun

Abdullah Al Mamun

Universiti Malaysia Kelantan; Binary University College; Multimedia University

C. A. Malarvizhi

Multimedia University

Sazali Abdul Wahab

National Defence University of Malaysia

Mohammad Nurul Huda Mazumder

Multimedia University

Date Written: August 2010

Abstract

The primary purpose of this study is to examine the effect of Amanah Ikhtiar Malaysia (AIM)’s microcredit program on hardcore poor households’ microenterprise income in Peninsular Malaysia. A cross sectional design with stratified random sampling method was employed to obtain the above mentioned objective. Existing literature survey suggests that there is a gap in the literature on the topic of measuring the effect of AIMs microcredit programs on hardcore poor households’ microenterprise income in Peninsular Malaysia. The results of this study reveal that AIM’s microcredit program increases the microenterprise income of their clients in Peninsular Malaysia. Therefore, this study concludes that a diversified program should be undertaken with special focus on providing adequate training, flexible and diversified loan programs, and increasing outreach. In addition, there is a need to review and re-organize the existing policies to reduce the dropout rate.

Keywords: microcredit, microenterprise, hardcore poor, microenterprise income, Amanah Ikhtiar Malaysia

JEL Classification: O16, P46, I31

Suggested Citation

Mamun, Abdullah Al and Malarvizhi, C. A. and Abdul Wahab, Sazali and Mazumder, Mohammad Nurul Huda, Investigating the Effect of Microcredit on Microenterprise Income in Peninsular Malaysia (August 2010). European Journal of Economics, Finance and Administrative Sciences, No. 29, pp. 122-132, 2011, Available at SSRN: https://ssrn.com/abstract=1946091 or http://dx.doi.org/10.2139/ssrn.1946091

Abdullah Al Mamun (Contact Author)

Universiti Malaysia Kelantan ( email )

Karung Berkunci 36
Pengkalan Chepa
Kota Bharu, Kelantan 16100
Malaysia

HOME PAGE: http://www.umk.edu.my/rasmi/

Binary University College ( email )

Bandar Puchong Jaya
47100 Selangor
West Malaysia
Malaysia

Multimedia University ( email )

Persiaran Multimedia
Cyberjaya, Selangor Darul Ehsan
Malaysia

C. A. Malarvizhi

Multimedia University ( email )

Jalan Multimedia
Cyberjaya, Selangor 63100
Malaysia

Sazali Abdul Wahab

National Defence University of Malaysia ( email )

Kem Sungai Besi
Kuala Lumpur, Selangor 57000
Malaysia

Mohammad Nurul Huda Mazumder

Multimedia University ( email )

Faculty of Management
Cyberjaya
Malaysia

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