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The role of intermediary model in financing micro enterprise sector in Malaysia


Mohd Shariff, Mohd Noor and Nawai, Norhaziah (2011) The role of intermediary model in financing micro enterprise sector in Malaysia. Project Report. Universiti Utara Malaysia. (Unpublished)

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Abstract

This research was designed to examine the intermediary model in financing micro enterprise sector in Malaysia.The Intermediary Model is more effective than the Porfolio or Individual Model.in situations where the micro enterprise sector is composed of many small borrowers which exceed the lenders risk-transaction cost frontier.The study used the mixed method approach whereby data gathered through in-depth interviews with Tekun Nasional (TN) officers and questionnaire survey being distributed to TN clients.Data was gathered from 208 borrowers under the TN scheme using the disproportionate random sampling technique.The study attempts to analyse either the criteria used by TN in offering loan is adequate and to determine the factors affecting repayment performance in microfinance programs in Malaysia The finding shows that individual factors that affect microentrepreneur's repayment performance are age, gender, education level and total monthly income.While, firm factors that affect microentrepreneur's repayment performance are firm's profit, business status, life of business, distance to lender office, business sector and area of operation.The loan factors that affect microentrepreneur's repayment performance are total amount of loan received, repayment periods and loan type.Meanwhile, the lender factors that affect microentrepreneur's repayment performance is, penalty imposed by TN.The result show that no pressures from TN for the clients to pay the loan and this causes the clients to delay their payment of just pay a minimum amount that resulted the clients finally defaulted.Besides, the result also shows that 11 percent of the respondents admitted that they did not fully utilise the loan given to them.

Item Type: Monograph (Project Report)
Additional Information: Kod S/O: 11827
Subjects: H Social Sciences > HG Finance
Divisions: School of Business Management
Depositing User: Prof. Dr. Mohd Noor Mohd Shariff
Date Deposited: 10 Jun 2013 06:22
Last Modified: 24 Apr 2016 06:30
URI: http://repo.uum.edu.my/id/eprint/8094

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