The effects of services by microfinance institutions on the welfare of urban households in Malaysia
The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variabl...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15655/ http://journalarticle.ukm.my/15655/1/40817-130405-1-PB.pdf |
| Summary: | The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and
nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We
contribute to the existing literature by using income as a mediating variable in the analysis. Questionnaires were
distributed to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data
for this study. We have adopted the quota sampling to collect the data. The results show that most of the services
provided by the microfinance institutions including microcredit, micro insurance and training have assisted the
urban households to earn more income and enhance their socio-economic welfare. The recommendations arising
from the results of this study are: 1) an environment that promotes cooperation between microfinance institutions
and households should be enhanced and 2) well-diversified and dynamic microfinance programs and specific
skills-building training programs should be created. |
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