A Survey on the Determinants of Entrepreneurial Training Effectiveness among Micro Finance Institutions of Malaysia

Abstract

The importance of the training is increasing day by day not only in corporate sector but also in entrepreneurial sector. This study aims to evaluate the influencing factors of entrepreneurial training effectiveness of Malaysian microfinance institutions (hereinafter MFIs). This study use survey research design and involve four listed MFIs of Malaysia that are selected on the base of engagement in entrepreneurship training during last five years. Questionnaires are used to collect data from selected respondents by using stratified random sampling. Results of the study reveal that deteriorating rate of small and micro enterprises is increasing rapidly due to inappropriate training and non-allocation of sufficient funds. Findings confirm the relationship between entrepreneurial training effectiveness and training need analysis. Training contents also found a critical and important factor for training effectiveness. Results also show that there is a need to undertake a comprehensive analysis by MFIs on individual entrepreneurs and the job tasks in order to estimate their training needs. In this way, the need of clients for appropriate and relevant training can be addressed in a better way.

DOI: 10.5901/mjss.2015.v6n6s4p396