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An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia

Financing plays an important role in supporting micro enterprises development. Although there are many financing options made available for this sector, most micro-enterprises encounter problems in accessing the funding assistance due to some external issues. This paper aims to examine the financing...

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Main Authors: Adonia, Siti Azirah, Ahmad, Kamilah, Mohamed Zabri, Shafie
Format: Article
Published: WSEAS 2018
Subjects:
HG Finance
T Technology (General)
Online Access:http://eprints.uthm.edu.my/5495/
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spelling my.uthm.eprints.54952022-01-10T03:01:18Z http://eprints.uthm.edu.my/5495/ An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia Adonia, Siti Azirah Ahmad, Kamilah Mohamed Zabri, Shafie HG Finance T Technology (General) Financing plays an important role in supporting micro enterprises development. Although there are many financing options made available for this sector, most micro-enterprises encounter problems in accessing the funding assistance due to some external issues. This paper aims to examine the financing preference among micro enterprises and the reasons that contribute to their financing preference. Data were derived from the questionnaire survey among the micro-enterprises entrepreneurs in Kelantan Malaysia. Based on 100 usable responses, the results demonstrate that the majority of the respondents rely heavily on their own funds due to loan application bureaucracy and owner/managers reluctance for additional debt commitment. The results also indicate that the respondents who opt for external debt financing, are triggered mainly by the insufficiency of their own internal capital for business expansion. In addition, respondents tend to use external funding if the loan application process is quick and simple with no collateral requirement. This is the case of most government micro-loan schemes where approval requirements are less rigid. This paper provides an insight in financing preferences among micro enterprises especially in a developing country. WSEAS 2018 Article PeerReviewed Adonia, Siti Azirah and Ahmad, Kamilah and Mohamed Zabri, Shafie (2018) An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia. WSEAS TRANSACTIONS on BUSINESS and ECONOMICS, 15. pp. 375-384. ISSN 2224-2899
institution Universiti Tun Hussein Onn Malaysia
building UTHM Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Tun Hussein Onn Malaysia
content_source UTHM Institutional Repository
url_provider http://eprints.uthm.edu.my/
topic HG Finance
T Technology (General)
spellingShingle HG Finance
T Technology (General)
Adonia, Siti Azirah
Ahmad, Kamilah
Mohamed Zabri, Shafie
An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
description Financing plays an important role in supporting micro enterprises development. Although there are many financing options made available for this sector, most micro-enterprises encounter problems in accessing the funding assistance due to some external issues. This paper aims to examine the financing preference among micro enterprises and the reasons that contribute to their financing preference. Data were derived from the questionnaire survey among the micro-enterprises entrepreneurs in Kelantan Malaysia. Based on 100 usable responses, the results demonstrate that the majority of the respondents rely heavily on their own funds due to loan application bureaucracy and owner/managers reluctance for additional debt commitment. The results also indicate that the respondents who opt for external debt financing, are triggered mainly by the insufficiency of their own internal capital for business expansion. In addition, respondents tend to use external funding if the loan application process is quick and simple with no collateral requirement. This is the case of most government micro-loan schemes where approval requirements are less rigid. This paper provides an insight in financing preferences among micro enterprises especially in a developing country.
format Article
author Adonia, Siti Azirah
Ahmad, Kamilah
Mohamed Zabri, Shafie
author_facet Adonia, Siti Azirah
Ahmad, Kamilah
Mohamed Zabri, Shafie
author_sort Adonia, Siti Azirah
title An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
title_short An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
title_full An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
title_fullStr An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
title_full_unstemmed An exploration of financing preferences among entrepreneurs: the case of micro enterprises in Kelantan, Malaysia
title_sort exploration of financing preferences among entrepreneurs: the case of micro enterprises in kelantan, malaysia
publisher WSEAS
publishDate 2018
url http://eprints.uthm.edu.my/5495/
_version_ 1738581384494055424
score 13.211869

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