Beyond Finance : Rectifying Growth Financing Constraints in Malaysian Small and Medium Enterprises (SMEs)

• Autorzy: Ramlee Shamshubaridah , Brema Madeline
• Języki publikacji: EN

Abstrakty

EN

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)

Słowa kluczowe

EN

Financial crisis; Small business; Enterprises condition

PL

Kryzys finansowy; Małe i średnie przedsiębiorstwa; Kondycja przedsiębiorstwa

• Czasopismo: Zeszyty Naukowe Uniwersytetu Szczecińskiego. Finanse, Rynki Finansowe, Ubezpieczenia
• Rocznik: 2009
• Numer: nr 16
• Strony: 507--515

Twórcy

autor

Ramlee Shamshubaridah

• National University of Malaysia

autor

Brema Madeline

• National University of Malaysia

Bibliografia

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