Macroeconomic factor influence on SMEs' performance / Ahmad Mohd Affandi

Small and Medium Enterprises (SMEs) in Malaysia are regarded as an important contributor to economic growth. The purpose of this research is to examine the factor contributes for the SMEs performance in Malaysia in terms of macroeconomics point of view. This report the results of a study which using the data conducted between 2001 and 2020. There were a total of 20 observations used in this study. A macroeconomics factor is created by combining the following independent variables: Inflation rate (CPI), the Interest rate (LR), and Unemployment rate (UR). SME GDP (SME GDP) serves as the dependent variable in this analysis. This study has used time series data and employed descriptive analysis, correlation analysis, and regression analysis. Research findings reveal that from the regression analysis, unemployment rate (UR) has a negative significant relationship and interest rate (IR) also has a negative significant relationship with SMEs performance (SME GDP). Meanwhile, the other independent variable which is, inflation rate (CPI) shows negative and insignificant relationship with dependent variable, with SMEs performance (SME GDP).