An Overview of Government Business Support Programmes for Micro and Small Businesses in Malaysia During the Covid -19 Crisis

Abstract

The largest number of business establishments in Malaysia is micro and small businesses. Although micro and small businesses make a great contribution to the country’s economic development, they are vulnerable and easily affected by any changes occurring within the business environment. Therefore, to ensure the survival of micro and small businesses in Malaysia, various business support programmes have been introduced by the government. It is believed that a conducive intervention programme is significant in ensuring the survival, competitiveness and growth of micro and small businesses. However, the effectiveness of business support programmes in facilitating the business survival of micro and small businesses have been debated. With the emergence of the current COVID-19 crisis, the issue of the effectiveness of the programmes become more critical. Based on a literature review, this study explores the issues and challenges concerning the access to, utilisation and delivery of micro and small business support programmes. The reviewed literature shows that the ineffectiveness of business support programmes is related to issues and challenges in the implementation of the programmes.

Determinants of Business Resilience Framework for Small Businesses: Moderating Effects of Financial Literacy

“…As a result, small businesses are able to manage their cash flow and this allows them to re-arrange their business strategies in crisis management during critical periods. The result is also consistent with a study by Topimin and Hashim (2021), which requires the government to improve its system for small businesses to access assistance programmes to support them.…”

“…The current study aims to evaluate some factors related to business resilience and the moderating effect of financial literacy on the relationships of compliance costs, government support, technology acceptance, and financial resources with business resilience. The findings supported Topimin and Hashim (2021), who stated that government support is critical for small businesses to expand and sustain themselves in the long run, as well as Njoroge (2013) who mentioned that financial literacy would make small business values more economical, efficient, and effective. Moreover, technology acceptance also plays a key part in this study, as it is consistent with previous research by Mustafa and Yaakub (2018).…”

“…Policymakers must improve the system for disseminating information and access to assistance programmes if they are to make government business support programmes that are relevant to the present business environment (Topimin & Hashim, 2021). Thus, the current study proposed the following hypothesis based on the foregoing discussion: H4: Government support positively influences business resilience among small businesses in Malaysia.…”

Pengaruh Literasi Keuangan Digital Terhadap Perkembangan Usaha : Studi Kasus Pada Umkm Di Praya Kabupaten Lombok Tengah

“…Literasi keuangan dipandang sebagai instrumen penting untuk keberhasilan usaha kecil, karena membantu untuk memahami dan mengevaluasi informasi yang dibutuhkan untuk membuat keputusan sehari-hari yang memiliki dampak keuangan dalam pengelolaan usaha sehari-hari (Fernandes, 2014). Kurangnya literasi keuangan di kalangan pengusaha mikro menyebabkan mereka kesulitan dalam mengakses pembiayaan eksternal (Topimin et al, 2020). Berdasarkan dari survei nasional literasi dan inklusi keuangan tahun 2022 oleh Otoritas Jasa Keuangan (OJK) NTB memiliki presentase sebesar 65,45% untuk literasi keuangan yang berada diatas ratarata nasional sebesar 49,65%, sedangkan inklusi keuangan provinsi NTB sebesar 82,34% berada dibawah ratarata nasional sebesar 85,10%.…”

Issues Faced by Micro Businesses during COVID-19: The Integration of Lean Practices and TRIZ

“…Furthermore, the limitations in financial and technical resources lead to difficulties for micro businesses in adjusting to the changing market conditions and implementing successful approaches to manage crises (Devins et al, 2005). Despite the introduction of government support programs to financially aid the affected businesses, the program uptake is insignificant due to bureaucratic procedures and low awareness among micro-business owners (Topimin & Hashim, 2021).…”