Financial sustainability and financial performance of the SMEs in service sector in Malaysia

Over the past few decades, social scientists, and policymakers in both developed and developing countries have realized that entrepreneurs' financial management and knowledge are crucial for forming and sustaining small and medium enterprises (SMEs). SMEs are essential for the economic growth o...

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Main Author:	Lohana, Sonia
Format:	Thesis
Language:	English English English
Published:	2021
Subjects:	HF5460-5469.5 Department stores Mail order business Supermarkets Convenience stores
Online Access:	http://eprints.uthm.edu.my/8490/1/24p%20SONIA%20LOHANA.pdf http://eprints.uthm.edu.my/8490/2/SONIA%20LOHANA%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/8490/3/SONIA%20LOHANA%20WATERMARK.pdf
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id	my-uthm-ep.8490
record_format	uketd_dc
spelling	my-uthm-ep.84902023-04-02T00:56:05Z Financial sustainability and financial performance of the SMEs in service sector in Malaysia 2021-11 Lohana, Sonia HF5460-5469.5 Department stores. Mail order business. Supermarkets. Convenience stores Over the past few decades, social scientists, and policymakers in both developed and developing countries have realized that entrepreneurs' financial management and knowledge are crucial for forming and sustaining small and medium enterprises (SMEs). SMEs are essential for the economic growth of Malaysia and therefore are considered as a significant source of job creation and poverty reduction as they significantly contribute to the gross domestic products. However, the major weaknesses that constrain SMEs' success in financial performance are the low financial planning, management, and knowledge. This should be of concern to the policymakers, stakeholders, and the government, as SMEs are essential for Malaysia's economic growth. Thus, this study aimed to determine the financial sustainability and financial performance of SMEs in Malaysia. The unit of analysis in this study was the SMEs top management of the business. A quantitative research design was employed, using a self-administrated questionnaire. Accordingly, five hypotheses were then formulated and tested in the survey using the data collected from the 146 respondents selected through a simple random sampling. The study covered Malaysia, which comprised three states, namely Kuala Lumpur, Selangor, and Johor. SMART-PLS was used as a statistical tool for data analysis. This study focused on the dimensions of financial sustainability. Findings indicated positive and significant relationships between dimensions of financial sustainability, namely financial and strategic planning, income diversification and financial literacy, and SMEs financial performance. However, sound administration and finance (SAF) and own income generation (OIG) were found to have a positive and insignificant relationship with SMEs' financial performance. The findings of this study for assessing and managing the enterprise's finance will allow maintaining the stability of FS by monitoring various types of business transactions performed and, if necessary, improving it by monitoring the valuation of the business transaction of an economic entity. 2021-11 Thesis http://eprints.uthm.edu.my/8490/ http://eprints.uthm.edu.my/8490/1/24p%20SONIA%20LOHANA.pdf text en public http://eprints.uthm.edu.my/8490/2/SONIA%20LOHANA%20COPYRIGHT%20DECLARATION.pdf text en staffonly http://eprints.uthm.edu.my/8490/3/SONIA%20LOHANA%20WATERMARK.pdf text en validuser phd doctoral Universiti Tun Hussein Onn Malaysia Fakulti Pengurusan Teknologi dan Perniagaan
institution	Universiti Tun Hussein Onn Malaysia
collection	UTHM Institutional Repository
language	English English English
topic	HF5460-5469.5 Department stores Mail order business Supermarkets Convenience stores
spellingShingle	HF5460-5469.5 Department stores Mail order business Supermarkets Convenience stores Lohana, Sonia Financial sustainability and financial performance of the SMEs in service sector in Malaysia
description	Over the past few decades, social scientists, and policymakers in both developed and developing countries have realized that entrepreneurs' financial management and knowledge are crucial for forming and sustaining small and medium enterprises (SMEs). SMEs are essential for the economic growth of Malaysia and therefore are considered as a significant source of job creation and poverty reduction as they significantly contribute to the gross domestic products. However, the major weaknesses that constrain SMEs' success in financial performance are the low financial planning, management, and knowledge. This should be of concern to the policymakers, stakeholders, and the government, as SMEs are essential for Malaysia's economic growth. Thus, this study aimed to determine the financial sustainability and financial performance of SMEs in Malaysia. The unit of analysis in this study was the SMEs top management of the business. A quantitative research design was employed, using a self-administrated questionnaire. Accordingly, five hypotheses were then formulated and tested in the survey using the data collected from the 146 respondents selected through a simple random sampling. The study covered Malaysia, which comprised three states, namely Kuala Lumpur, Selangor, and Johor. SMART-PLS was used as a statistical tool for data analysis. This study focused on the dimensions of financial sustainability. Findings indicated positive and significant relationships between dimensions of financial sustainability, namely financial and strategic planning, income diversification and financial literacy, and SMEs financial performance. However, sound administration and finance (SAF) and own income generation (OIG) were found to have a positive and insignificant relationship with SMEs' financial performance. The findings of this study for assessing and managing the enterprise's finance will allow maintaining the stability of FS by monitoring various types of business transactions performed and, if necessary, improving it by monitoring the valuation of the business transaction of an economic entity.
format	Thesis
qualification_name	Doctor of Philosophy (PhD.)
qualification_level	Doctorate
author	Lohana, Sonia
author_facet	Lohana, Sonia
author_sort	Lohana, Sonia
title	Financial sustainability and financial performance of the SMEs in service sector in Malaysia
title_short	Financial sustainability and financial performance of the SMEs in service sector in Malaysia
title_full	Financial sustainability and financial performance of the SMEs in service sector in Malaysia
title_fullStr	Financial sustainability and financial performance of the SMEs in service sector in Malaysia
title_full_unstemmed	Financial sustainability and financial performance of the SMEs in service sector in Malaysia
title_sort	financial sustainability and financial performance of the smes in service sector in malaysia
granting_institution	Universiti Tun Hussein Onn Malaysia
granting_department	Fakulti Pengurusan Teknologi dan Perniagaan
publishDate	2021
url	http://eprints.uthm.edu.my/8490/1/24p%20SONIA%20LOHANA.pdf http://eprints.uthm.edu.my/8490/2/SONIA%20LOHANA%20COPYRIGHT%20DECLARATION.pdf http://eprints.uthm.edu.my/8490/3/SONIA%20LOHANA%20WATERMARK.pdf
_version_	1776103358274207744

Financial sustainability and financial performance of the SMEs in service sector in Malaysia

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