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Development programs, household income and economic vulnerability: A study among low-income households in Peninsular Malaysia

Abdullah Al Mamun (Global Entrepreneurship Research and Innovation Centre (GERIC), Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)
Mohd Asrul Hery Bin Ibrahim (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)
Rajennd Muniady (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)
Mohammad Bin Ismail (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)
Noorshella Binti Che Nawi (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)
Noorul Azwin Binti Md Nasir (Faculty of Entrepreneurship and Business, Universiti Malaysia Kelantan , Pengkalan Chepa, Malaysia)

World Journal of Entrepreneurship, Management and Sustainable Development

ISSN: 2042-5961

Article publication date: 4 June 2018

Issue publication date: 29 October 2018

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Abstract

Purpose

The purpose of this paper is to improve the socio-economic condition of low-income households in Malaysia, many products and services are available, including access to working capital and enterprise development training programs. This study examined the impact of access to working capital and micro-enterprise development training programs on household income and economic vulnerability among participants of development initiatives in the eKasih (national poverty data bank) in Peninsular Malaysia.

Design/methodology/approach

Adopting a cross-sectional design, the authors collected data randomly from the selected 300 micro-entrepreneurs from the list of development organizations available in the eKasih (national poverty data bank) located in four states of Peninsular Malaysia. Quantitative data were collected through structured interviews with the respondents from October to November 2017.

Findings

Both the length of participation and total amount of economic loan were found to increase the household income. However, there was no positive and significant impact of total number of training hours on household income. Interestingly, length of participation was found to reduce the level of economic vulnerability, except total amount of economic loan, and total number of training hours.

Originality/value

Despite the overwhelming empirical evidence, the findings indicated that the impact of enterprise development training programs was inconclusive. The effect of total amount of loan on economic vulnerability was also inconclusive. Hence, both policy makers and development organizations should understand how their programs benefit the poor households that can be improved through new implementation strategies.

Keywords

Acknowledgements

This research was funded by RMIC, Universiti Malaysia Kelantan under the research grant titled Short Term Research Grant (SGJP – MyRA – USM). Research Project title: Increasing Income, Inclusiveness and Sustainability of Bumiputera Entrepreneurship and Bumiputera Commercial and Industrial Community.

Citation

Mamun, A.A., Ibrahim, M.A.H.B., Muniady, R., Ismail, M.B., Nawi, N.B.C. and Nasir, N.A.B.M. (2018), "Development programs, household income and economic vulnerability: A study among low-income households in Peninsular Malaysia", World Journal of Entrepreneurship, Management and Sustainable Development, Vol. 14 No. 4, pp. 353-366. https://doi.org/10.1108/WJEMSD-01-2018-0008

Publisher

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Emerald Publishing Limited

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