The impact of macroeconomic variables on SMEs in Malaysia

Autor:	S. S. Rashid, Muhammad Rozi Malim, Ruzanita Mat Rani, Zuraidah Derasit, Faridah Abdul Halim
Rok vydání:	2017
Předmět:	History Economic growth media_common.quotation_subject Regression analysis Monetary economics Recession Computer Science Applications Education Interest rate Exchange rate Inflation rate Economics Profitability index Small and medium-sized enterprises media_common
Zdroj:	Journal of Physics: Conference Series. 890:012138
ISSN:	1742-6596 1742-6588
DOI:	10.1088/1742-6596/890/1/012138
Popis:	Small and Medium Enterprises (SMEs) in Malaysia have gained a prominent role as the significant contributor to the economic growth. However, the world nowadays is heading towards economic downturn. The stability of macroeconomic variables promotes profitability of SMEs which propels them to a stage where they can access financing for sustaining growth. Therefore, it is apparent that the behaviour of the macroeconomic variables plays a major part in determining the nation's backbone in surviving the economic downturn. The objective of this study is to evaluate the impact of macroeconomic variables on the profitability of SMEs in Malaysia using multiple regression analysis. The findings revealed that the exchange rate has a small positive impact on SME GDP growth rate (10.81%), the interest rate has a strong positive impact (60.74%), while the inflation rate has a strong negative impact (-53.89%). Therefore, it can be concluded that the interest rate and inflation rate have significant impacts on the profitability of SMEs in Malaysia.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::d73a5538be6cad122719c22c4f28a839 https://doi.org/10.1088/1742-6596/890/1/012138 Zobrazit plný text záznamu