Wan Nurulasiah binti Wan Mustapa,

Universiti Malaysia Kelantan, Malaysia

E-mail: xiaojienurulmustapa@gmail.com

Evaluating the effectiveness of development initiatives on enterprise income, growth and assets in Peninsular Malaysia

Abdullah Al Mamun,

Universiti Malaysia Kelantan, Malaysia

E-mail: abdullah.a@umk.edu.my

Mohamed Dahlan Ibrahim,

Universiti Malaysia Kelantan, Malaysia

E-mail: dahlan@umk.edu.my

Abstract. Malaysian development organizations offer a diversity of initiatives to uplift the socio-economic conditions among low-income micro-entrepreneurs. This study examined the impact of two initiatives namely access to working capital and enterprise development training programs on Kelantanese micro-enterprise income, growth, and net-worth of assets By adopting a cross-sectional design, data were collected by means of random selection across the participants’ lists of three development organizations. A total of 450 micro-entrepreneurs from seven districts in the state of Kelantan responded. Multiple regression analyses are used to analyzed the data. The regression analysis shows that access to working capital and enterprise development training programs have positive impacts on the income, growth, and net worth of assets owned by Kelantanese micro-enterprises. This study extends the limited literature of micro-enterprise income, growth and asset net worth, and the role of working capital and enterprise development training programs, to provide new understandings on the effectiveness of contemporary development initiatives.

Received: September, 2018

1st Revision: November, 2018

Accepted: January, 2019

DOI: 10.14254/2071-789X.2019/12-1/2

JEL Classification: F61, G21

Keywords: micro-credit, training, micro-enterprise income, growth, assets, cross-sectional, quantitative analysis