Literacy, Financial Planning and Business Success among Smallholders Financial

Cluster Research Grant, 2017

Abstract

This research focuses on improving the income of the independent smallholders. Based on feedbacks from smallholders, several potential business models are explored and set-up. These actual business ventures are directly managed by the farmers themselves. Then, these business models are measured in its ability to improve the smallholders’ household income and at the same time reducing their poverty level. To enhance the skills of the smallholders, related projects are also undertaken in the aspects of entrepreneurship, financial literacy and supply chain.
Thus, financial literacy based researches and its related education programs remain relevant and the study’s outcomes are expected to improve financial literacy level on certain segment of population. In Malaysia, many financial product and assistances by government and privates have been introduced to support society including farmers. Regrettably, at the same time the large proportion of farmers have only a limited knowledge and experience of financial system. Consequently, it would hinder farmers to get into the modern financial systems effectively. In the long run, the objectives of government to escalate rural economy will be impaired. Therefore, assessment on the level of financial literacy among smallholders is essential so that any strategy taken to improve it can be based on this study’s findings. Additionally, examination the impact of financial literacy on financial planning and business success would substantiate the benefit of gaining financial literacy.

Project Leader

Mara Ridhuan Che Abdul Rahman (Faculty of Economics and Management, Universiti Kebangsaan Malaysia (UKM), mara@ukm.edu.my)