149-159

• Chong, Fennee

This study assesses the credit management of micro-enterprises in East Malaysia. The micro- enterprises in Malaysia form 80 percent of the Malaysian SMEs and play a significant role in the country΄s development. Similar to the micro-enterprises in the West and those in the developing countries, securing financing and credit management remain challenging to this group of enterprises. Other than evaluating the credit repayment practices, this study also examined whether factors such as education level, indebtedness as well as capacity to repay credit affects repayment performance. Findings showed that about 59 percent of the respondents did not pay their loans on time. Level of education attained by respondents reported a significant predictive power over their credit management practices. A higher level of education level attained implies better credit management. Besides, it was also found that there was a significant gap between genders in terms of credit management. Meanwhile, higher total liability per month was found to be significantly associated with a higher level of loan defaults. Finally, respondents financial capability, represented by household income, was proved as not having any significant impact on the credit management of micro- enterprises.

• Economics and Business
• Computer and information sciences

• Επιχείρηση
• Financial management
• Statistics

credit management, SMEs, micro-enterprises, indebtedness, financial capacity

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