The effects of Amanah Ikhtiar Malaysia loan on micro-enterprise: a case study on Machang district, Kelantan / Salbiah Abdul Rahman

Microfinace is programs offering small loans and other financial services such as saving, credit, insurance etc to poor families. The programs allow them engage in productive activities or grow their tiny businesses in intention to reduce poverty alleviation. In Malaysia, the famous micro-finance provider is Amanah Ikhtiar Malaysia (AIM). Amanah Ikhtiar Malaysia (AIM) was set up to disburse small loans on reasonable terms exclusively to the very poor households to finance additional income-generating activities. Therefore, this research explores the effect of Amanah Ikhtiar Malaysia to micro­enterprises operating activities and financial condition in Machang districts only. A study has been using 120 respondents where the samples were taken from the borrowers in Machang district only. The questionnaires design using nominal, ratio and Likert scale. The findings will assist policy makers, development agencies and business organizations to ascertain the appropriate strategy to improve the micro entrepreneur sector in future.