Rising cost of doing business has been the main issue facing SMEs. Most affected were those in manufacturing and construction sectors as well as small-sized firms. Multiple reasons are cited for the increase, including higher cost of raw materials and branding and marketing efforts. In order to alleviate the rising cost of doing business, many say they would undertake a few measures or business strategies, such as reducing operating costs, as well as introducing new products and services.
Cash flow or liquidity issue is also among the main concerns for SMEs. As SMEs are strapped for cash, this presents itself as the biggest obstacle to business growth, particularly microenterprises and SMEs in services and construction sectors.
Over the years, there have been various initiatives implemented to enhance SME financing in Malaysia. An overview of the SME Financing Ecosystem is shown below:
Reference:
SME landscape of Malaysia, Compare Hero.my, 12 February 2020
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