Development programs, household income and economic vulnerability. A study among low-income households in Peninsular Malaysia
| Published date | 12 November 2018 |
| Date | 12 November 2018 |
| DOI | https://doi.org/10.1108/WJEMSD-01-2018-0008 |
| Pages | 353-366 |
| Author | Abdullah Al Mamun,Mohd Asrul Hery Bin Ibrahim,Rajennd Muniady,Mohammad Bin Ismail,Noorshella Binti Che Nawi,Noorul Azwin Binti Md Nasir |
| Subject Matter | Strategy,Business ethics,Sustainability |
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, and
Mohd Asrul Hery Bin Ibrahim, Rajennd Muniady,
Mohammad Bin Ismail, Noorshella Binti Che Nawi and
Noorul Azwin Binti Md Nasir
Faculty of Entrepreneurship and Business,
Universiti Malaysia Kelantan, Pengkalan Chepa, Malaysia
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 Microcredit, Economic vulnerability, Household income, Low-income households
Paper type Research paper
Introduction
Poverty, vulnerability, and inequality have been under debate in developing countries.
Undoubtedly, developing countries experience high level of material deprivation and large
dispersion of individual well-being. Therefore, poverty alleviation and inequalities
reduction are at the top of the agenda for developing countries and the Millenium
Development Goa ls (MDGs) of the Un ited Nations. The concept of vulnerability (risk of
experiencing poverty in future) has been discussed widely, followed by international World Journal of
Entrepreneurship, Management
and Sustainable Development
Vol. 14 No. 4, 2018
pp. 353-366
© Emerald PublishingLimited
2042-5961
DOI10.1108/WJEMSD-01-2018-0008
The current issue and full text archive of this journal is available on Emerald Insight at:
www.emeraldinsight.com/2042-5961.htm
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.
353
Low-income
households
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