CHALLENGES ON ACCOUNTING PRACTICES AND CAPITAL FUNDING AMONG MICRO BUSINESS IN MALAYSIA

A DESCRIPTIVE ANALYSIS

Abstract

 Micro business provides a significant contribution to the economic growth. Nowadays, there is an increasing number of micro business. However, micro business was not able to compete in capital market. Therefore, the objectives of this paper are (i) to identify basic accounting practices among micro business in Malaysia; (ii) to identify the challenges on accounting practices and external capitals among micro business in Malaysia (iii) to propose a simple accounting module for micro business. Online questionnaire was distributed to micro business owner. The descriptive analysis was conducted using SPSS version 28. Overall, this study found that the respondents agreed accounting barriers, funding barriers, and key profile of micro business are the challenges for micro business to survive in the capital market. Additional finding found that technology and pandemic are also part of the challenges This paper proposed a simple module for accounting practice and proper financial statement. The training for micro business owner is also needed to enhance their financial literacy. For example, encourage professional and academic experts to provide training on voluntarily basis to the micro business. By identifying these challenges, it may provide opportunity for improvement for micro business’s strategy and policy maker for micro financing such as Bank Negara and SME Corp Malaysia.