- Shamshubaridah Ramlee (National University of Malaysia), Madeline Brema (National University of Malaysia)
- Beyond Finance : Rectifying Growth Financing Constraints in Malaysian Small and Medium Enterprises (SMEs)
- Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia, 2009, nr 16, s. 507-515, wykr., bibliogr. 8 poz.
- Kryzys finansowy, Małe i średnie przedsiębiorstwa, Kondycja przedsiębiorstwa
Financial crisis, Small business, Enterprises condition
- 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)
- 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
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