Inter-Firm Linkages, Creditworthiness And Access To Finance In Malaysian Manufacturing Small Medium Enterprises
SMEs, particularly in the manufacturing industry, reportedly face difficulties in accessing funds to finance their capital expenditure and working capital. The various challenges that SMEs face in their access to finance could be eased via the capital market, government financial support and inter-f...
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| Format: | Thesis |
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2017
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| Summary: | SMEs, particularly in the manufacturing industry, reportedly face difficulties in accessing funds to finance their capital expenditure and working capital. The various challenges that SMEs face in their access to finance could be eased via the capital market, government financial support and inter-firm linkages. Unlike SMEs in the technology or services industry, manufacturing SME are less likely to gain from the startup funds such as equity crowdfunding, angel investing, or venture capital. In year 2015, only 15.4% out of RM 71.9 billion financing was channelled to manufacturing SME, compared to 61% channelled to SMEs in the services sector. SMEs are also told not be too dependent on government loans and instead improve their creditworthiness. This study aims to explore the roles of inter-firm linkages and their influence on improving SME access to finance and its creditworthiness (measured by 5C’s of credit). For Malaysia, a majority (93.8%) of the companies in the manufacturing sector are SMEs and they contribute to the total Malaysian GDP thus this study will bring significant contribution to the body of knowledge with regards to SME’s access to finance. |
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