ISSN: 2222-6990
Open access
Malaysian economic growth is greatly contributed by the micro-enterprises as the highest establishments among Small and Medium Enterprises (SMEs). However, the performances of micro-enterprises are not as good as expected. Most of them cannot survive and sustain the enterprises for an extended period, and some have faced bankruptcy. Thus, this study aims to examine their performance in terms of financial and nonfinancial aspects. Financial performance is based on estimated profits, sales and cash flow, while nonfinancial performance is measured by using employee conditions, valued customer, and product development. A total of 200 sets of the questionnaire were distributed to micro-enterprises in Pahang, Malaysia. The result of this study shows that most of the selected micro-enterprises have good financial and nonfinancial performance, but they perform better in term of nonfinancial rather than the financial aspect. This study is valuable for practitioners such as owners/managers, which will help them to make a better strategy to have an improvement in the financial aspect.
Abu, B. S. A. J., Rohani, S., Subarna, S., & Azrai, A. (2011). Entrepreneurial Challenges Confronting Micro-enterprise of Malaysian Malays. International Journal of Social, Behavioral, Educational, Economic and Management Engineering, 5(11), 226-231.
Ahmad, N. N. (2016). Cash management practices in micro and small businesses in Malaysia. Journal of Education and Social Sciences, 4, 331-335.
Annastazia, M., & Robert, G. M. (2014). Socio-Cultural Factors and Financial Performance among Women Small and Medium Enterprises in Tanzania. European Journal of Business and Management, 6(32), 153-163.
Authority, C. M. (2010). A comparative analysis of the performance of African stock markets for the period 2008-2009. Research, Policy Analysis and Planning Department Working Paper.
Awa, H. O., Ojiabo, O. U., & Emecheta, B. C. (2012). Integrating TAM and TOE frameworks and expanding their characteristic constructs for e-commerce adoption by SMEs. Proceedings of Informing Science & IT Education Conference (InSITE 2012).
Bagorogoza, J., & de Waal, A. (2010). The role of knowledge management in creating and sustaining high performance organisations: The case of financial institutions in Uganda. World Journal of Entrepreneurship, Management and Sustainable Development. 6 (4).
Garrigós?Simón, F. J., & Marqués, D. P. (2004). Competitive strategies and firm performance. Management Research: Journal of the Iberoamerican Academy of Management. 2 (3).
Che Zuriana, M. J., & Rapiah, M. (2011). Performance Measurement System (PMS) In Small Medium Enterprises (SMES): A Practical Modified Framework. World Journal of Social Sciences. 1(3), 200-212.
Cheing, A., Hong, E. H., Kuek, T. Y., Chai, B. H. B., & Cham, T. H. (2020). Social Media Effectiveness Indicators of Microenterprise Strategic Planning. Asian Journal of Business Research, 10(1), 150.
Chong, H. G. (2008). Measuring performance of small-and-medium sized enterprises: the grounded theory approach. Journal of Business and Public Affairs, 2(1), 1- 10.
Christopher, D. I., & David, F. L. (2003). Coming Up Short on Nonfinancial Performance Measurement. Retrieved 20th July 2019: https://hbr.org/2003/11/coming-up-short-on-nonfinancial-performance-measurement
Daniel, K. K., & Okibo, W. B. (2014). Competitive Strategies and the Non Financial Performance of Micro-enterprises in Kenya (A Survey of Industrial Knitting Micro-enterprises in Kiambu County). International Journal of Management and Commerce Innovations, 2(2), 160-186.
European Commission. (2015). Annual Report on European SMEs 2014/2015. Retrieved 20 July 2019: https://www.google.com/url=http%3A%2F%2Fec.europa.eu%2FDocsRoo
Farhan, S. F., & Nur Naha A. M. (2011). The Critical Success Factors of Performance Measurement for Malaysian SME’s in Manufacturing Sectors: A Proposed Framework. Proceeding of 2nd International Conference on Business and Economic Research (ICBER 2011).
Khrystyna K., Melina L. M., & Rita R. (2010). Micro, Small, and Medium Enterprises around the World: How many are there, and what affects the count? Retrieved 31 July 2019:
http://www.ifc.org./wps/wcm/connect/MSME-CIAnalysisNote.pdf
Kotane, I., & Kuzmina-Merlino, I. (2017). Analysis of small and medium sized enterprises’ business performance evaluation practice at transportation and storage services sector in Latvia. Procedia Engineering, 178, 182-191.
Krishna, M., Annie T., Caroline C., Chang, S. W., Jonathan T. Y. P. & Tan. K. L. (2012). A Study on Factors Affecting the Performance of SMEs in Malaysia. International Journal of
Academic Research in Business and Social Sciences, 2(4), 224-239.
Mamorena, L. M. & Olumide, H. B. (2014). Nonfinancial Performance Measures in Small Medium Enterprises’ Supply Chain Management. Economics Journal, 5(3), 247-257.
Mbugua, S. K., Agnes, N., & Ondabu, I. T. (2014). Factors Affecting the Performance ofSmall and Micro-enterprises in Limuru Town Market of Kiambu Country, Kenya. International Journal of Science and Research Publications, 4(12), 2250-3153.
Monge-Gonzalez, R., & Torres-Carballo, F. (2015). The Dynamics of Entrepreneurship in Costa Rica. An Analysis of Firm Entry, Exit, and Growth Rates. Inter-American Development Bank Discussion Paper.
Hazlina, N. A., & Pi-shen, S. (2009). Dissecting behaviours associated with business failure: A qualitative study of SME owners in Malaysia and Australia. Asian Social Science, 5(9), 98-104.
Nurazree, M., & Mohd Faiz, H. (2013). TQM and Malaysian SMEs Performance: The Mediating Roles of Organization Learning. Procedia-Social and Behavioral Science, 130, 216-225.
Nurulhasanah, A. R., Zulnaidi, Y., & Rafisah, M. R. (2014). Determinants of successful financial management among micro entrepreneur in Malaysia. Journal of Asian Scientific Research,4(11), 631-639.
Nyanga, T., Zirima, H., Mupani, H., Chifamba, E., & Mashavira, N. (2012). Survival of the Vulnerable: Strategies Employed by Small to Medium Enterprises in Zimbabwe to Survive an Economic Crisi’. Journal of Sustainable Development in Africa, 15(6), 142-152.
Nyangoma, P. S. (2012). Credit Terms, Access to Finance and Financial Performance of SMEs in Kampala. Unpublished Master thesis, Makarere University.
Peninnah, M. M. (2014). An Investigation into the Factors Influencing Sustainability of Women Owned SMEs in Kenya: A Case of Machakos Country. Unpublished Master thesis, University Of Nairobi.
Rosli, M. M., & Sidek, S. (2013). The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises:: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013, 1.
SME Corp. (2014). SMEs Annual Report 2014/2015. Retrieved 30 December 2019: http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/sme- annual report/book/7-annual-report-2014/2-annual-report
Souksavanh, V. (2014). Entrepreneurship, Government Policy and Performance of SMEs in Laos. GSICS Working Paper Series, Kobe University.
Tayeh, M., Al-Jarrah, I. M., & Tarhini, A. (2015). Accounting vs. market-based measures of firm performance related to information technology investments. International Review of Social Sciences and Humanities, 9(1), 129-145.
Tundui, C. S., & Tundui, H. (2012). Survival, Growth Strategies and Performance of Women Owned Micro and Small Businesses in Tanzania. International Journal of Business and Management, 7(8), 143-155.
The World SME Forum (WSF). (2015). A Business Plan for SME Advancement Globally.
Wong, K. L., Kuek, T. Y. & Ong, S. F. (2013). Strategic Planning and Business Performance: A Study of SMEs in Malaysia. Proceedings of 3rd Asia-Pacific Business Research Conference (APBRC 2103).
Wu, D. (2009). Measuring Performance in Small and Medium Enterprises in the Information & Communication Technology Industries. Unpublished Doctorate of Philosophy thesis, Royal Melbourne Institute of Technology (RMIT) University.
In-Text Citation: (Ahmad, & Jamil, 2020)
To Cite this Article: Ahmad, N. N., & Jamil, N. N. (2020). Measuring the Financial and Nonfinancial Performance of Micro-Enterprise in Pahang, Malaysia. International Journal of Academic Research in Business and Social Sciences. 10(10), 706-717.
Copyright: © 2020 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode