Improving SMEs financing for stronger financial and non-financial performance

SMEs play a vital role in the economy of Malaysia. Microfinance provides small loans to the SMEs to enhance their businesses. With the SMEs representing 97.3% (645,136 establishments) of the total business establishments in Malaysia, it is crucial to have a continual investigation on the effects of microfinance have on these enterprises performance. This can expose viable areas of improvement needed for micro-financing activities. This research is aimed to investigate the relationship of microfinance with SMEs performance. The respondents are the SMEs from a district located in the state of Johor, Malaysia. Data were collected using the structured convenient sampling and analyzed with SPSS software. It was found that there is a strong positive relationship between microfinance with both the financial and non-financial SMEs performance (p