A Structured Equation Modelling Study on Factors Contributing To A Financing Gap amongst Malaysian SMEs

Authors

  • Vethaghanastri Gunasagar
  • Abdul Rahman
  • Assoc. Professor Dr Parameswaran Subramanian
  • Prof Dr Maria Josephine Williams
  • Gan Connie

Abstract

In Malaysia, Small and Medium Enterprises or SMEs contribute more than one-third of its economy. In 2017, SMEs contributed RM435.1 billion to the economy with a higher Gross Domestic Product (GDP) growth of 7.2% against 5.2% in 2016. As a result, GDP contribution of SMEs increased further to 37.1% from 36.6% from the previous year. SME employment also grew at 3.4% during the year, resulting in SME contribution to overall employment at 66.0% with an increase from 65.3% in 2016. Despite recording an increase in the export value from RM155.1 billion in 2016 to RM167.4 billion in 2017, SME contribution to the total exports was lower at 17.3% (2016: 18.6%) due to higher export growth by large firms. In 2017, a total of RM10.5 billion was spent to implement 168 SME development programmers which have benefited around 600,000 SMEs across all sectors (Smecorp.gov.my, 2017).

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Published

2022-10-20

How to Cite

Vethaghanastri Gunasagar, Abdul Rahman, Assoc. Professor Dr Parameswaran Subramanian, Prof Dr Maria Josephine Williams, & Gan Connie. (2022). A Structured Equation Modelling Study on Factors Contributing To A Financing Gap amongst Malaysian SMEs. RES MILITARIS, 12(2), 1314–1329. Retrieved from https://resmilitaris.net/index.php/resmilitaris/article/view/204

Issue

Vol. 12 No. 2 (2022): vol.12, n°2,Summer-Autumn 2022

Section

Articles