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Description

The primary goal of this research is to examine into the significance of microfinance interventions in the growth of micro and small enterprises (MSEs) in Malaysia, as MSEs are the most vulnerable group in Malaysia and the worldwide. Due to several challenges, such as 50 percent of MSEs stopping operations for 3 to 5 years in the beginning, the rate of start-up level of such enterprises has also declined. The current study used a quantitative research approach and a cross-sectional research design to investigate this issue. Data was acquired from MSEs who are microfinance institution clients utilizing a survey questionnaire. The data was investigated using Structural Equation Modeling (AMOS, 21). Microfinance institutions have a critical role in promoting MSE development, according to the findings of the investigation. Financial and non-financial services provided by microfinance programs, such as micro-credit, micro-savings, training, and business education, have played a significant part in the development of the MSE sector in emerging markets like Malaysia. However, one of the most important aspects that encourages the good contribution of microfinance interventions to MSE development is social capital. The study provides insight for microfinance institutions, practitioners, and other policymakers concerned in promoting the growth of micro and small businesses.