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Author
Shamshubaridah Ramlee (National University of Malaysia), Madeline Brema (National University of Malaysia)
Title
Beyond Finance : Rectifying Growth Financing Constraints in Malaysian Small and Medium Enterprises (SMEs)
Source
Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia, 2009, nr 16, s. 507-515, wykr., bibliogr. 8 poz.
Keyword
Kryzys finansowy, Małe i średnie przedsiębiorstwa, Kondycja przedsiębiorstwa
Financial crisis, Small business, Enterprises condition
Note
summ.
Country
Malezja
Malaysia
Abstract
As the American financial crisis begins to trickle down to other economies, Malaysian SMEs will be severely affected even with the introduction of stimulus packages. Financing obstacles will be among the most important factors that impede growth for SMEs in this recent global financial crisis. This study shows that in the case of Malaysia where financing aid was never a problem; growth will be more constraining as the gaps between the episodes of world financial crisis becomes narrower. Government intervention using structural approaches to assist SMEs in reducing their financial con­straint will see that the problem of fund delivery still persists. Holding of funds among intermediaries will intensify with banks taking a more prudent action in assessing the risk profile of its borrowers. This paper offers a conceptual framework to ease financial constraints among SMEs beyond loan giveaway practices which are short term in nature. This study argues that government assistance should be directed at solving the opaque nature of SMEs hence making them more attractive to lenders. While the crisis takes its time to heal, it presents an opportune time for the government to correct the risk profile of the SMEs. Channelling funds through financial intermediaries or the capital market will be less of an obstacle for SME growth if structural approaches are combined with more well thought out long term approaches. This study propose that the cultivation of entrepreneurship skills be a more im­portant initiative for government intervention activities as this will alleviate SMEs' less opaque and a more transparent risk profile. (original abstract)
Accessibility
The Library of Warsaw School of Economics
The Library of University of Economics in Katowice
The Main Library of Poznań University of Economics and Business
The Main Library of the Wroclaw University of Economics
Szczecin University Main Library
Bibliography
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  1. Akerlof, George A. (1970). "The Market for «Lemons»: Quality Uncertainty and the Market Mechanism". Quarterly Journal of Economics 84 (3): 488-500.
  2. Berger, Allen N., and Gregory F. Udell (1998). "The Economics of Small Business Finance: The Roles of Private Equity and Debt Markets in the Financial Growth Cycle". Journal of Banking & Finance, Volume 22. 613-673.
  3. Berger, Allen N., and Gregory F. Udell. (2006). "A More Complete Conceptual Framework for SME Finance". Journal of Banking and Finance 30, 2945-2966.
  4. Thorsten Beck (2007). "Financing Constraints of SMEs in Developing Countries: Evidence, Determinants and Solutions".
  5. http://center.uvt.nl/staff/beck/publications/obstacles/financingconstraints.
  6. (Thorsten Beck & Asli Demirguc-Kunt, 2006). "Small and Medium- Size Enterprises. Access to Fi­nance as Growth Constraint". Journal of Banking and Finance 30, 2931-2943.
  7. Marzunisham Omar (2006)."Enhancing Access to Financing by Small & Medium Enterprises in Ma­laysia". Proceedings of The 2nd International Conference on Financial Systems: Competitiveness of the Financial Sector. Tokyo 1-9.
  8. Census of Establishment and Enterprise (2005). Department of Statistics Malaysia.
Cited by
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ISSN
1640-6818
1733-2842
Language
eng
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