Financial literacy among SME’s in Malaysia
Recently, financial literacy received considerable attention on not only business level but individual and government levels. This is because the financial illiteracy will lead to individual and business failure especially with incessant incidents of global financial crisis that imply the risk tha...
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Maya Global Education Society
2019
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my.upm.eprints.798992023-03-23T04:31:28Z http://psasir.upm.edu.my/id/eprint/79899/ Financial literacy among SME’s in Malaysia Thabet, Omer Abd Manaf, Atiqah Ali, Fazlin Kantakji, Mazhar Recently, financial literacy received considerable attention on not only business level but individual and government levels. This is because the financial illiteracy will lead to individual and business failure especially with incessant incidents of global financial crisis that imply the risk that people and business across the world facing. Financial Literacy enables individuals and business to comprehend the use and purposes of money and take wise financial decisions According to Van Rooij et al. (2011) literacy is one of the major determinants of the success or failure of the business. Similarly, Greenspan (2002) suggested that the financial literacy will help an individual know more how to manage their personal financial, financial planning and know how to make strategic investment decisions for their long-term savings. For small and medium enterprises (SME’s), the failure rate is too high in their first five years in many different countries. For instance, In United State (US), a new business had a 48.4 % chance of surviving five years (Business Employment Dynamics, Bureau of Labor Statistics, 2013). Similarly, in Australia the SMEs reported failure rate of 23% (Watson, 2003). The main reason for this failure is the lack of these SME’s financial literacy (OECD, 2013). In Malaysia, according to the Department of Statistic Malaysia (2017), the total number of SMEs establish in Malaysia were 907,065 units in 2016 with 37.1% contribution to Malaysian GDP and providing 66% of total employment in the country. However, Ming-Yen et al. (2013) stated that the failure rate among Malaysian SME’s was increased lately. Therefore, this paper tries to address the current level of the main reasons caused this failure found in the literature (financial literacy) among SMEs in Malaysia. Maya Global Education Society 2019 Article PeerReviewed Thabet, Omer and Abd Manaf, Atiqah and Ali, Fazlin and Kantakji, Mazhar (2019) Financial literacy among SME’s in Malaysia. Humanities and Social Sciences Reviews, 7 (2). pp. 376-383. ISSN 2395-6518 https://mgesjournals.com/hssr/article/view/1235 10.18510/hssr.2019.7244 |
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Recently, financial literacy received considerable attention on not only business level but individual and government levels.
This is because the financial illiteracy will lead to individual and business failure especially with incessant incidents of
global financial crisis that imply the risk that people and business across the world facing. Financial Literacy enables
individuals and business to comprehend the use and purposes of money and take wise financial decisions According to Van
Rooij et al. (2011) literacy is one of the major determinants of the success or failure of the business. Similarly, Greenspan
(2002) suggested that the financial literacy will help an individual know more how to manage their personal financial,
financial planning and know how to make strategic investment decisions for their long-term savings. For small and medium
enterprises (SME’s), the failure rate is too high in their first five years in many different countries. For instance, In United
State (US), a new business had a 48.4 % chance of surviving five years (Business Employment Dynamics, Bureau of Labor
Statistics, 2013). Similarly, in Australia the SMEs reported failure rate of 23% (Watson, 2003). The main reason for this
failure is the lack of these SME’s financial literacy (OECD, 2013). In Malaysia, according to the Department of Statistic
Malaysia (2017), the total number of SMEs establish in Malaysia were 907,065 units in 2016 with 37.1% contribution to
Malaysian GDP and providing 66% of total employment in the country. However, Ming-Yen et al. (2013) stated that the
failure rate among Malaysian SME’s was increased lately. Therefore, this paper tries to address the current level of the
main reasons caused this failure found in the literature (financial literacy) among SMEs in Malaysia. |
| format |
Article |
| author |
Thabet, Omer Abd Manaf, Atiqah Ali, Fazlin Kantakji, Mazhar |
| spellingShingle |
Thabet, Omer Abd Manaf, Atiqah Ali, Fazlin Kantakji, Mazhar Financial literacy among SME’s in Malaysia |
| author_facet |
Thabet, Omer Abd Manaf, Atiqah Ali, Fazlin Kantakji, Mazhar |
| author_sort |
Thabet, Omer |
| title |
Financial literacy among SME’s in Malaysia |
| title_short |
Financial literacy among SME’s in Malaysia |
| title_full |
Financial literacy among SME’s in Malaysia |
| title_fullStr |
Financial literacy among SME’s in Malaysia |
| title_full_unstemmed |
Financial literacy among SME’s in Malaysia |
| title_sort |
financial literacy among sme’s in malaysia |
| publisher |
Maya Global Education Society |
| publishDate |
2019 |
| url |
http://psasir.upm.edu.my/id/eprint/79899/ https://mgesjournals.com/hssr/article/view/1235 |
| _version_ |
1761620392405893120 |
| score |
13.211869 |