The Importance of Micro Financing to the Microenterprises Development in Malaysia’s Experience

  •  Norhaziah Nawai    
  •  Mohd Noor Mohd Shariff    


This paper aims to explore the importance of micro financing to the development of micro-enterprises (MEs) in Malaysia. MEs play a vital role in developing Malaysian economy. MEs accounted about 80% of the total Small and Medium Enterprises (SMEs) and 78.7% of business establishments in Malaysia. However, MEs face numerous problems such as lack of marketing, technology and credit facility. Therefore, micro financing is a choice to the MEs because it provides an easy, faster and convenient financing facility. The paper examines the microfinance programs offer to the MEs in Malaysia. The paper concludes that a small credit can help micro entrepreneurs to boost up their business.

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