url
22
Jun
2014

THE IMPORTANCE OF MONITORING AND ENTREPRENEURSHIP CONCEPT AS FUTURE DIRECTION OF MICROFINANCE: DATA AND METHODOLOGY

The respondents selected for this study are poor people involved in the microfinance program in rural areas from six different districts of Selangor, namely, Sabak Bernam, Kuala Selangor, Kuala Langat, Hulu Langat and Hulu Selangor, which are being served by AIM and TEKUN, LZS and YBK Selangor. These areas of Selangor were chosen due to the high concentration of rural poor. The number of respondents during the research period accounted for 5,867 respondents (AIM), 4,350 respondents (TEKUN), 1,600 respondents (LZS), and 400 respondents (YBK).
For TEKUN, microfinance programs selected for this study are based on the TEKUN Niaga, TEKUN Ternak dan TEKUN Tani. While for the AIM program, micro-finance programs studied were referred to Pembiayaan Ekonomi Ikhtiar, Mesra, Srikandi, Wibawa, Penyayang dan Wawasan. Selangor state is selected as the study area because Selangor is the most innovative, creative, and having high capability of economic resources with high microfinance programs including LZS, YBK Selangor, TEKUN and AIM. In fact, the pioneer in the implementation of AIM microcredit program in Malaysia is in the North Western of Selangor covering the Districts of Sabak Bernam and Kuala Selangor. Through LZS’s innovation, Selangor is the only state in Malaysia that has a relatively high capability to operate microfinance program based on ‘syariah’ and Islamic finance in Malaysia. Similarly, YBK Selangor is the only NGO which is active in its microfinance capital assistance program in Malaysia.
In this study, sampling consists of participants who had operated microenterprise programs for more than three years. The sample size determination table by Krejcie and Morgan in the Uma Sekaran and Bougie was adopted. A stratified random sampling was used because of proportionate subpopulation which refers to the different microfinance programs. The study involved a total of 446 respondents consisting of TEKUN program, AIM, LZS, YBK Selangor participants and control samples. Thus, total samples selected for the current study is based on the following break-down – YBK (32 samples) AIM (180 samples), TEKUN (134 samples), and LZS (49 samples). A total of 51 respondents were selected for the control group.
Respondents have been asked for consent prior to the distribution of questionnaire. Even though most respondents feels uneasy to provide the information with regard to their business profile due to the disclosure of their financial information, however, after a briefing by the research assistant, they’ve agreed to become a respondent. With that, 446 questionnaires have been used for analysis.
The questionnaire consists of three sections that are respondents and their microenterprise’ profile, the micro financing received and their perception towards the implementation effectiveness of the program. The respondent and microenterprise profile is intended to find out about the respondent’s background and their microenterprise. The second section is to gain information about the financing that the respondent received. The third section is to scrutinize the respondent’s perception towards the implementation effectiveness of the program through the processes, procedures, experiences, qualification and officer’s attitudes. Respondents were asked to rate the factors using the scale of 1 (strongly disagree) to 5 (strongly agree).
The study relates between the objective outcomes of microfinance program, entrepreneurial concepts together with microenterprise, with the measurement of effectiveness that refer to the level of participant’s microenterprise income. The study evaluates the outcome of microfinance program towards participants, before and after they received the financing. All of the respondents were the poor before they were involved with the program.
For the purpose of this study, the independent variable refers to monitoring and microfinance program (main variables) and control variables that is numbers of dependent, participant’s age, education level, gender, working experience, total income before joining the program, business classification, business period, business location, application purpose of micro financing, total financing received, reception frequency of microfinance and training. Independent variable for microfinance program refers to the program’s processes and procedures, experiences, qualification and officer’s attitudes. This is based on Amha and Ageba regarding the development service of non-financial assistance that can be integrated in the microfinance programs implementation process. The selection of experiences, attitudes and qualification of the program’s officers are based on the research done by Rusdy Hartungi on Bank Rakyat Indonesia’s (BRI) microfinance program where well trained, qualified, dedicated, transparent and interesting incentives helps to contribute to positive impact towards participants.

The respondents selected for this study are poor people involved in the microfinance program in rural areas from six different districts of Selangor, namely, Sabak Bernam, Kuala Selangor, Kuala Langat, Hulu Langat and Hulu Selangor, which are being served by AIM and TEKUN, LZS and YBK Selangor. These areas of Selangor were chosen due to the high concentration of rural poor. The number of respondents during the research period accounted for 5,867 respondents (AIM), 4,350 respondents (TEKUN), 1,600 respondents (LZS), and 400 respondents (YBK). For TEKUN, microfinance programs selected for this study are based on the TEKUN Niaga, TEKUN Ternak dan TEKUN Tani. While for the AIM program, micro-finance programs studied were referred to Pembiayaan Ekonomi Ikhtiar, Mesra, Srikandi, Wibawa,

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Kevin J. Brandon

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