This study aims to investigate income group changes within the B40 and factors contributing to a higher income group, after utilizing microcredit from Amanah Ikhtiar Malaysia (AIM). The study was conducted in the North of Peninsular Malaysia involving the states of Perlis, Kedah and Pulau Pinang. The data was collected from 380 women micro-entrepreneurs who received AIM microcredit. The Wilcoxon signed-rank test was used to analyse the significant differences in the income changes. Meanwhile, ordinal logistic regression was applied to estimate the factors that contribute to the higher income group among the AIM women micro-entrepreneurs. The findings indicate that AIM women micro-entrepreneurs within the B40 subgroups had significantly increased their income, hence, moving them up to the higher income group. The results also indicate that education, amount of loan borrowed, business experience and business management are significant factors that influence the women micro-entrepreneurs likelihood to be in the higher income group. This study made a profound contribution as it demonstrated clearly the success of microcredit in elevating the income of the B40 group across different income group levels prior to receiving the loan. Therefore, this study suggests that outreach of microcredit programmes should be further extended to the B40 group.
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In-Text Citation: (Muda et al., 2022)
To Cite this Article: Muda, N. S., Lonik, K. A. T., & Mohamad, A. M. (2022). Efficacy of the Amanah Ikhtiar Malaysia Microcredit Scheme in Elevating the Income of the B40 Group. International Journal of Academic Research in Business and Social Sciences, 12(8), 1884– 1900.
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