CONCEPTUAL PAPER OF THE IMPACT OF MICROFINANCING ON MICRO AND SMALL ENTERPRISES IN PENINSULAR MALAYSIA: SURVIVAL ANALYSIS APPROACH

This study aims to examine the impacts of microfinance criteria in providing financial and non-financial services for micro and small enterprise (MSE) survival and growth expansion capacity using a survival analysis approach. There are two dependent variables involved in the study, which are survival and growth. A mixed-methods strategy will be adopted in the data collection by using longitudinal data and field studies. A multiple-method strategy will be used in the study to reduce the possibility of personal bias. Qualitative data are semi-structured with a bank officer. Meanwhile, quantitative data are collected using questionnaires for MSE. Besides that, panel data are useful for longitudinal data. The study will use both primary and secondary data. Structured questionnaires (closed-ended questions) and interview sessions are primary data, while the financial institution’s record will be used for secondary data. Method of Analysis: For Survival analysis, a Cox regression hazard model will be adopted for semiparametric, and for non-parametric, the study will adopt Kaplan-Meier to perform descriptive analysis. Moreover, to measure the impact of growth, the study will use a Multiple Regression Model to obtain the result of growth. Thus, this study aims to contribute both theoretically and practically to the financial field, providing a framework and expanding existing theories. It aims to integrate knowledge from various sources, enhancing understanding of microfinance and MSEs’ survival and growth. Practical applications based on the theoretical framework and findings may offer new insights into microfinance practice.