Factors affecting financial literacy among micro small and medium-sized enterprises (MSMEs) in Bangladesh and Malaysia

Uddin, Md. Nazim and Nahar, Lutfun and Kassim, Salina and Md Saad, Norma (2023) Factors affecting financial literacy among micro small and medium-sized enterprises (MSMEs) in Bangladesh and Malaysia. In: 8th International Student Symposium, Istanbul, Turkiye.

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Abstract

Micro, small, and medium-sized enterprises (MSMEs) play an essential role in many countries’ economic and social development. This sector, in particular, generates new job opportunities, encourages competition, and, as a result, boosts productivity. MSMEs' long-term viability is crucial. MSMEs often fail during the first five years of their existence. Poor money management is one of the reasons for this failure, primarily related to a lack of financial literacy. Financial literacy is also challenging regarding human resources' ability to accept funding from financial institutions. Consequently, this paper aims to examine the extent of financial literacy among Grameen Bank and AIM MSMEs in six divisions throughout Bangladesh and Malaysia. A standardised questionnaire was used to collect data from 486 AIM and Grameen Bank MSMEs. The level of financial literacy among Grameen Bank and AIM MSMEs operators is investigated using descriptive and inferential analysis. As a result of the findings, structural equation modelling was used to determine how the components are linked, which significantly impact financial literacy. According to the study, knowledge, socialisation, agents, attitude, awareness, and skills are significant predictors of financial literacy among AIM and Grameen Bank MSMEs operators in Bangladesh and Malaysia. Policymakers should consider how the characteristics and financial literacy skills of MSMEs affect their behaviour and actions in microentrepreneurship when they make decisions about how to help MSMEs get more money. This is particularly evident in Malaysia and Bangladesh.

Item Type:	Conference or Workshop Item (Invited Papers)
Uncontrolled Keywords:	MSMEs; Knowledge; Skill; Attitude; Behaviours; Entrepreneurs; Financial Literacy
Subjects:	BPH Islamic Economics > BPH72 Economic development. Growth. Sustainable development. Sustainability
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Centre for Islamic Economics Institute of Islamic Banking & Finance (IIiBF) Kulliyyah of Economics and Management Sciences
Depositing User:	Prof. Dr Norma Md Saad
Date Deposited:	02 Oct 2023 14:42
Last Modified:	02 Oct 2023 14:46
URI:	http://irep.iium.edu.my/id/eprint/107208

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