MICROFINANCE AS A CATALYST FOR SUSTAINABLE MICRO AND SMALL ENTERPRISES (MSE) PERFORMANCE: A STUDY OF AMANAH IKHTIAR MALAYSIA (AIM)

Andrew Sija

Abstract


This study examines the impact of microcredit accessibility, microfinance training and financial literacy and group support mechanisms on sustainable MSEs performance among Amanah Ikhtiar Malaysia (AIM) borrowers in seven targeted zones in Sarawak. Data from 173 active AIM clients were gathered using a cross-sectional survey approach, and SPSS Version 26 was used for analysis. Significantly positive correlations between all independent factors and sustainable performance were shown via correlation analysis. Microcredit accessibility was found to be the most significant predictor (β =.407, p <.001), with group support mechanisms coming in second (β =.205, p <.05). Financial literacy and microfinance training, on the other hand, did not exhibit any significant predictive value in the regression model, indicating possible inadequacies in the delivery of teaching or its applicability to business requirements. These findings deepen understanding of microfinance effectiveness in underserved regions and suggest that sustainable MSE performance depends on accessible and continuous disbursement, with adequacy of loan size and supportive knowledge sharing and networking opportunities rather than on standalone training programs. The study advances microfinance research by providing empirical evidence from a rural context and offers critical recommendations for enhancing microfinance program design to foster sustainable microenterprise development in emerging economies.

 

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Keywords


microcredit accessibility, continuous disbursement, loan-size adequacy, microfinance training, financial literacy, entrepreneurial skills and financial management, group support mechanisms, networking opportunity, knowledge sharing, sustainable MSE perfor

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References


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DOI: http://dx.doi.org/10.46827/ejefr.v9i5.2091

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