A study on small business finance in Malaysia / Juwanita Dewi Mohamad Bajury

The financial management of small firm is a topic that has attracted increasing interest. The nature of financial policies and practices depend upon the size of the firm. Small firms tend to rely more heavily on the retention of earnings as a way to build equity, have less liquidity, use greater amounts of debts and experience more business risk. In addition to the conventional sources of financing, small firms frequently rely on the financial assistance programmes offered. This paper also acknowledges the constraints faced by small business and the role of small business in the economy.