Challenges Faced by SMEs in Accessing Financing in Malaysia
Small and Medium Enterprises (SMEs) form the backbone of Malaysia’s economy, contributing significantly to employment and economic growth. However, seeking SME financing remains a significant challenge for many entrepreneurs, despite the various financial options available. Accessing SME loans and other forms of sme financing often comes with hurdles that hinder the growth potential of these businesses. This article delves into the challenges faced by SMEs in Malaysia when seeking business loans , the role of government initiatives, and how these challenges can be overcome. 1. Limited Access to Traditional Financing One of the biggest barriers to obtaining business loans in Malaysia is the difficulty many SMEs face in meeting the stringent requirements of traditional banks. Commercial banks often require SMEs to provide collateral, a good credit score, and a solid financial history to secure a bank loan for business . This can be particularly challenging for usahawan muda (y...