The financing of small business / Norashiqain Shamsudin

Finance and credit form an important component in the successful operation of a business organisation• While there is generally a wide variety of sources of finance and credit even in a develop^ ing country, many of these sources are not easily accessible to small business.This is rather unfortunate since small business needs outside finance and credit even more urgently than largescale business« Small business plays an important role in the overall economic development of the country.Briefly, small firms employ more workers per unit of capital; they help to increase total savings in the economy; they have a favourable impact on income distribution; they serve as a 'training ground' for developing the skills of workers and entrepreneurs and finally, they play an important complementary role to large firms in the economy- In short, small business constitutes a vital majority in the business and trade sector.The objective of this research is to present a comprehensive and hopefully up-to-date ways of financing the small business.Therefore readers will have a clearer idea and -understanding on how small business getting the funds to start as v/ell as expanding their businesses and what are the problems faced by these small businessmen in seeking financial supports« The readers may come accross the words 'small business' as used in the topic are not constantly applied in this research paper.Bank Negara used the words 'small-scale enterprise' in its 1935 Annual Report which also mean as small business or small firm.