sme's perception of the credit grantee

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101ISRA Ieraia Jra f Isai Fiae V. 2 Isse 2 2010

An EmpIRIcAl InVEStIgAtIon

Into SmEs pERcEptIonS oF cREdItguARAntEE coRpoRAtIon (cgc)mAlAySIA BERhAd:

A cASE Study oF thE ISlAmIcguARAntEE SchEmE In mAlAySIA

Amirul Afif Muhamat* and Saadiah Mohamad**

Abstract

Small and Medium Sized Enterprises (SMEs) are considered the

backbone of most economies, whether developing or developed,

due to their contributions to national output and employment. In

Malaysia, the government has formulated various strategies to

enhance the development of SMEs. One such strategy resulted in the

formation of the Credit Guarantee Corporation, whose responsibility

is to be a loan guarantor for the SMEs. The phenomenal rise of

Islamic banking and finance in the global market in recent years has

prompted many financial institutions in Malaysia to start offering

a line of Sharah-compliant products in their effort to tap into the

latest market opportunities. SMEs now have a choice whether to take

up Islamic loans and various other innovative Sharah-compliant

products or to use the conventional products in financing theirbusiness. This paper reports an empirical study on the use of Islamic

credit guarantee schemes among SMEs in Malaysia and analyses

data from 87 respondents out of a total of 300 questionnaires sent.

* Air Affif is a lerer a e Fa f Bsiess maaee uiversiiteki mARA. he a be ae a [email protected]..

** Saaia maa is rfessr f Eis a e Fa f Bsiess maaee,uiversii teki mARA, Sa Aa, maasia. Se is rre a assiaeresear few a e Asia Isie f Fiae (AIF). Se a be ae [email protected]..


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A Eiria Ivesiai i SmEs pereis f crei garaee crrai (cgc)maasia Bera: A case S f e Isai garaee See i maasia

102 ISRA Ieraia Jra f Isai Fiae V. 2 Isse 2 2010

The study investigates factors that explain their choice of the Islamic

finance guarantee scheme as opposed to conventional ones offered

by the CGC, their perceptions on the quality of services providedand on the expected role of the government. The study reveals that

there is still a low level of awareness and usage of Islamic guarantee

schemes among the respondents. This empirical study represents

an early investigation into Islamic guarantee schemes among the

SMEs in Malaysia. The findings on the variables that influence their

demand obtained from this study have practical implications for the

government and the service providers in terms of product formulation

and development, incentives, tax and policy creation.

Keywords: cgc, araee, SmEs, igaraee, Isai Fiae

I. IntRoductIon

Sa a ei size eerrises (eefr SmEs) fr ar

f e ira eria a isria aiviies i maasia.I eir eraia are, SmEs are fe sa a iexerieeas are a arer a we esabise iaiaaies. terefre, baks are rea e e SmEsas qie a sbsaia a f risk is ivve i SmEs eis.(cai & care rere b o, hwa-B; habiba,mzafar Sa, Raa, Aias & Azai, m., 2003, .143).

crei risk is ervasive r fiaia arkes.

traiia, varis fiaia isiis ave asse e bref rei risk. Baks bear e rei risks aae bak asa frwar ras. crei israe aies ave rvieverae fr e eria rei risk fae b siers f sera ivese s a servies (labre & Sesier (2005,

.118). tis sws a e fiaia isiis reqire a arara a absrb e risks as a res f e bsiess rasais.I maasia, e crei garaee crrai maasia Bera

(eefr cgc) was se erake is ira ask f beia arar SmEs. cgc is e f e eveea fiaiaisiis a wrk se wi e miisr f Erereer a


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Air Afif maa a Saaia maa


cerai devee (mEcd), a i is we b Bak nearamaasia (e cera Bak, eefr Bnm) a a eria

baks a fiae aies (igaraee ra, Jaar 24, 2008).desie is ji wersi, Bnm as exere siifiaifee is arer isiis r e eais f eei ieies. Wii e vera ares se fr SmEs ei,a seifie a a be erake er e cgc faiiies(Bk & nr 2005, .430). Fr is esabise i 1972 ie rese ie, a erereers a aies ave bee iverei araees, wi ribe e exasi f a esf bsiesses, fr e arira ser e afari ser(cgcs 2006 aa rer, . 26). te vae f fs a ave beeive as araees as irease ver ie. te issi f cgcis e SmEs a ave aera r rers i seri aa fr fiaia isiis (cgcs 1993 Aa Rer, .13).B esabisi cgc, baks a iiise risk i rvii as SmEs, as ar f e risk as bee isre fr a ia araeefee.

tere are varis sees a are ffere b cgc e

erereeria i i maasia. Ea see is iffere iare a frae aieve a serve a ariar are r raiee. As maasia raies a-baki sses (veiaa Isai baki erae asie ea er) a ies

be a Isai fiaia b i e rei, cgc as e wiis Isai sees i rer ffi e veres asirais.tese sees are e Isai Baki garaee See a edire Aess garaee See (cgc 2006 Aa Rer).

hwever, sie e iei f is Isai see, a esiereri a siive rw fr is rs, e Isai araeesee as erfre as exee a as bee as eiiveas e veia araee see. tis s, erefre, ais exre e varis ea iis fr e Isai araeesee wi e bjeive f fii ssibe sis fr e asa exis i e see. Severa ieifie areas f ers a

bee e is f is s are easre e eve f awareess

f erereers wars e Isai araee see, a assessa are e ie ase f e Isai araee see vis-a-vis e veia araee see. Frerre, is s as


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aases e ia f e Isai araee see e SmEs aave iise e see. I aii, e ereis f erereers

wars e Isai araee see were as easre a eieeai i arkei e see was evaae.Sbseqe is iri, e ex e i is aer

is e resear e se, eie reaers e sesake i i is s. tis is e fwe wi a ierarereview f revis aries rei araee i ever raisaia r, e veres re, eees qaifiais,

erei f sers a awareess, wi ese ies beie sie variabes. tis is fwe wi fiis erive fr es, e si a e as ar is e referees.

A. Research Methodology

tis resear iises riar aa assebe r qesiairesive e a SmEs i a as a exer cgcffier. tere were 300 reses ieifie fr e is f SmEswi were ike ra fr ever ser: riar arire,

afari (ii ar-base), afari reaeservies, servies, sri, ii a qarri (naia SmEdevee ci Rer 2005, Aeix 2). Rse (1975) iesa a sae size f re a 30 a ess a 500 is siere as fr a s. te qesiaire was esie b irraie 5-liker sae e, e-ee qesis, raki saea fre ie qesis wi were frae i a biiafr (maa a Eis). Frerre, a i es was e

ra as 10 seee SmEs. te rasribi ress f eqesiaire fr maa Eis a vie versa was exee ba rfessia rfreaer w as a rae i liisis. teverifie qesiaires were e isribe ra via ai e ieifie SmEs, wse aresses were erive fr e SmEsif ra.

maie qesiaires was ieifie as e viabe ei isribi a assessi e feebak fr e reses

e e fexibii i arai isae reses.Frerre, wie e s was bei e, e researerwas i e uie Ki wie e reses were maasia


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SmEs, s e ai f aie qesiaires was e besavee. te resse rae was siere erai (87 f 300

reses reie e qesiaires) esie e eri ake frisribi a ei qesiaires bei ree s,wi arxiae 29 reses rei e qesiaires er.

nevereess, eee ierviews were as se i is ss a a rbes eraii e srre, ress, rs aeraia isses f cgc be issse r. Searifrai s as aa rers, ewsaer is, aaziesa jras were as se i is resear.

B. Literature Review

tis s as ieifie fr fars: awareess, e veresre, ser erei a eee kwee, as iravariabes a a ifee ea a ai f Isai araeesees ffere b e cgc a SmEs i maasia.

1. Awareness

Awareess as bee eie a ies i varis arkeijras a bks a is reae arkei aiviies. laviea Seier (1961, .60) sae a ere are six ses beiiwi aware, iiae ree ajr fis f averisi assw i diara 1; (1) te firs w, awareess a kweereae ifrai a ieas. (2) te se w ses, ikia referee, ave wi favrabe aies r feeis

war a r. (3) te fia w ses, vii arase, are re ai- e aqisii f e r.

I is s, awareess is easre i rer ae eeve f faiiari a kwee f e reses rearie cgcs Isai araee see. As arifie b laviea Seier (1961), i is ear a awareess is a iraase i averisi, wi is ar a are f arkeiaiviies. I sees a if e f e ses is ie, e bi

a ave a rer iae f e rs, servies r fe raisai isef. tis is aiabe wa is aeii cgc, a eraes as a eria ei. As a eria


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ei, i ees e erfrae f saes a servies ive e ies, s, avi a reibe iae is ver ira i

rer ara a re is rs a servies.twe (1967, .64) sess a a arkei sraes firs aase e eve f ser awareess f is braae a servies, a w e ser ress warsi, eier wi a favrabe r favrabe aie. tis isira as iffere eves f awareess reqire ifferearkei sraeies a se, s easree is esseia sbseqe eeriai f rress wars a seifiarkei a. tis s es rvie se isis erereers reais wars cgc a is servies, re ress erive fr e qesiaire. I is wr ia: awareess, kwee, a evee f favrabeaies war a seifi r feare a be efi bii a referee fr e ie f rs (lavie &Seier, 1961, .61). terefre, lavie a Seier ses aif cgc a eae e erereers se is servie fr e firsie, i a fi as a sei se fr e crrai se

er rs a ariar ie, a ie i e crrai.nevereess, e ia f avi rer awareess

rjei sers a ave seris seqees fr aariar bsiess raisai. tis severe effe is e rfiabii a e rw ases f e raisai,

b as affes e we sie if e raisai as aira re a wars e, s as cgc, wi iserse b e vere assis SmEs b araeei

e we baii fiai fr fiaia isiis. Ifcgc fais e e SmEs, i eas a e veresasirais see e SmEs exasi a rw ave beesessf. Severa ira fars ifee e faire ferai rs a servies; e a sier bi se

bras bease e as isffiie ifrai evaae e,e as rie a rejee e, e as reas r e ase is area saisfie wi e bra e is rre si, r e

as se eaive feebak fr averisi r wr-f-iai (naraaa & marki, 1975, .2).


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2. TheGovernmentsRole

Wakis (2007, .133) saes a e re f vere is a

ira e, si fr e evee f sa bsiess,b fr sreei e ia a sa bsiess as braei erfrae . ye a Va Jr.(2007, .199), eer a, ai a s eiss are a afiivere isii sie a severe bsae ivese,erereersi, a ivai. cberse a ises

brearaies a ea e isribi f eris a ieses,ereb swi w e ress b wi eiaavaes bee ebie i ew eqie r ew rive

ress.If e maasia vere, erefre, ires a

ieives cgc fr fferi Isai araee sees, ee exe a favrabe res r aeae warse sees. tere are varis iis weer vereiervei is eessar, r if i js akes e siai wrse.gree (2003, .13) ares a se qarers sier avere iervei is eessar e rs a e

iis ise e SmEs are fair wars e. Iras, se ee sress a e reas vereiervei a be jsifie is arke faires, a ere is aear ai weer e ierfei rea exiss i earke, r i is js ere e e arke fres. terefre,gree arifies a e iis jsifi vereiervei see be ffie, as aseri ifrai,ierfe eii a exeraiies a be ieifie as

fars affei e rei arke . cee, erefre, saes ae ribi f SmEs i maasia as bee akweesie e ear 1980s, a e vere as ire avarie f aeies a sees re e evee fis ser (Bk & m nr, 2005, . 428).

Rii arifies frer a e veres iveis si faiiae aess eb aia fr sa firs(gree, 2003, .23). gree (2003, .24) ares a vere

iervei is aar i a r rei sse. A rrei sse is efie as a fiaia sse, ariar reae brrwis. gvere iervei e e SmEs is


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fe bbe as a sbsi, wi ives rise a ba airaer a a siive iae. Aar fr ivi ire sbsiies

i e fr f as r ras, eai eees w areivve i sa bsiess ei aiviies is beer, as is wie eraiae e eaive ereis f e SmEs, reee aiisraive s, a eae e ffiers ersaif e are f e SmEs bsiess. Fr isae, havers i iss (1996, .146) aske 18 ariias w were wrkii fiaia isiis aae e reae raes fr asie se f fires, a e res was a ea e f ea eir w sis a iie ere was saarisesse a be se easre e ssaiabii f rei

rraes.mrever, i sees a ee bae ierfeis

i e arke as e re reass a iee e aes f SmEsseri fiaia assisae fr e baks. tis a be re a erai exe; wever, b aeri is reas i rer aw vere iervei is rea a assive e, wi reaes ieffiie as e SmEs. I a reae s

feei sre. caera iffi is e s qe reasas e SmEs jsif eseves we e are qesieas w e are abe sere fiai fr e baks. ts,is eas a e refrai f e rei sse is eessaras a -er si. gvere iervei wi as aras isse a be viewe as a erar si. hwever, ia reve siiar rbes fr rri aai i fre.As a seqee, ri e vere fr e s be

e as resr, afer er aeraives ave faie reaise ebjeives ae. Eve if vere iervei is awe,e iervei s be abe reae a sese f ressibiias e SmEs, s a e exeriee e s far aivaes e aieve e bes fr e assisae ive.

I is s, cgc a be viewe as a fr f vereiervei e SmEs rw a exa i maasia.hwever, e assisae ive b cgc is siiar e

sbsiies ive e SmEs. I is ira e a cgcis a eria ei wi siea ressibiiies ebeei is bjeives. terefre, ever rasai arve b


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e crrai is ae afer a r aaive riskress. tere is s i s as a free ive b

e cgc e SmEs. As a res, e erereers wi besiae wrk ar s a e a aieve bsiesserfrae, fr eir bsiess srviva, b as frreai e ffere fiaia assisae.

I e ni maasia pa, e vere as akweea e wi be sifi fr ivi fiaia assisaei e fr f sbsiies erfrae ras, s a iswi siae eii as e SmEs. mrever, evere as sresse a riri wi be ive aiesa are ivaive a eiive, eseia i e sraeiisries (Askkar, 2006, .1). ts, i a be se a e re f e vere i maasia is e SmEs base eri r erfrae raer a b ivi ies (as) rassisae bi.

3. CustomerPerception

csers erei is aer ira isse be siere,

wi aes wi ie a, ee, is ai (Rekies, 2006).te reaisi bi bewee e seer a e sers wisae is irei; eier i bees favrabe r e b esser a exee. Frerre, e exeriee aie b esers ver ie, a e aes i e irsaes. wiifee eir ereis ab e ariar isse, r rservie. te qai f a ariar servie is erive fr wae sers wa, wi is r eir ereis (Kais

& Vkeas, 1997, .279). oe f e ira ases ferei is a i a ifee e sers ais wars aariar bra ae, wi i r wi sae eir s rasebeavir (Jakie, 2007, .281). I e ex f cgc, reaia siive erei as e bi, ariar wars eSmEs i is i riia, as e are e are arkef e crrai. te erei f cgc is ab is

rs a servies, b as easses everi ab

e raisai, saff, aaee, is rak rer, a aswr f ab cgc. Wri a lsr, erefre,sae a ere are a fars a a a re i eerii


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a bra/r ereive qai ii rie, sre iae,isribi iesi, averisi sei, a rie eas

(2007, .79).Berr saes a bra as a riia re i arkeiservies as e sers ereis are erive fr eiriressi f e bra a is assiais. B e iaefar is e exeriee fr e servie isef (o li ea., 2004, .218). caerjee (2007, .59) sbsaiaes is bsesi a ere is sierabe resear iiai aifferees i frai a ii f rie reis a aesers erei f e ri ffer, rase eisisa rase saisfai. We a reae is cgcs Isaiaraee see: if e sers see r ik a Isaiaraee sees ssess iqe araerisis are veia araee sees, is a re e iise eIsai araee sees. te iqe ases a be i afrs, s as vere ax ieives, wer fees fr Isaiaraee sees, r ier a as. tis is sre

b Jakie b sai a effeive aaee f ser

exeais a irease e ikei f e rasef a fiaia servie, i a as ifee ser saisfaia a sers reaisi wi a fiaia rvier (2007,

.282). hee, ier iisai f Isai araee seeswi irease eir erfrae, wi wi be rasae i eirease a f araees isse er e baer f eIsai araee see, r is a ae as a res f eier vae f araees ive e SmEs.

4. EmployeesKnowledge

te rai evee i e Isai baki isr as reaea a i e isrs wrkfre, wi is a ar f e iraes f e fiaia servies isr. terefre, irer vere is siai, as a erar easre, saffw wrk fr e veia baki ser ave bee ire fi e vaaies i e Isai fiaia isiis

(masr & Isaq, 2008, .48). tis a wrk erari;wever, i e er i is e bes si, ess eeees are ive sffiie raii i Isai baki, s


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a e a ree a ebrae e bjeives a vaesreae Isai baks. A ere are severa reabe

maasia isiis fferi Isai baki a fiaerses, s as e Isie f Isai Baki a Israe(IIBI), e Ieraia cere fr Eai i Isai Fiae(IncEIF), a e Ieraia Isai uiversi, maasia(IIum). hwever, s aes wi ive a isi iaas is exee ae i e isr if e Isai baks ake se ivese i e evee f eir ieraa aia, w wi be eai wi e ai aees fe isr.

previs, se isses were raise b sers we ebak saff were abe exai ear e ifferee beweeIsai baki a veia rs. mrever, e werever skeia, a sai a b rs were siiar. tisaie wi issae e ieres f eia sers wa wa iise Isai baki rs e iaraea iseai avie. hwever, e ses ake b e ceraBak rasfr Isai wiws Isai sbsiiaries a

eiiae e rbe (Rs, 2005). hwever, is is ease wi cgc as e rs ffere b e crrai aresie b sie a ae b e sae ffiers, weer e areveia r Isai araee sees. ts, e qesiis w re e Isai araee sees vis-a-visveia araee sees?

II. FIndIngS

As sw i tabe 1, 87 reses ariiae i e srve, ifr varis reiis bakrs. te ajri f reseswere 68 msis (78.2%), fwe b 11 Biss (12.6%), fivecrisias (5.7%) a ree his (3.4%).


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Table1:DemographicoftheRespondents-ReligiousBackgrounds

Vai

Religiousbackgrounds

Frequency Percent

Isa 68 78.2

Bis 11 12.6

hi 3 3.4

crisia 5 5.7

ta 87 100.0

tis sei aes eerie e reses awareess aereis f e Isai araee see rvie b cgc a

Isai fiae i eera, as sw i tabe 2. te qesis aresre i e fr f a 5-i liker sae; 1 - sr isaree,2 - isaree, 3 - era, 4 - aree a 5 - sr aree.

Table2:DescriptiveAnalysis

ofAwarenessandPerceptionsamongsttheRespondents

Questions N MeanStd.

Deviation

B3. I aree a e ifrai Isai araeesees is wiesrea as e SmEs i.

87 2.9310 1.10804

B4. I kw ere is a ifferee bewee Isaiaraee sees a veia araee sees.

87 3.9195 .93035

B5. I wi awas se fiai base Isairiies weever ssibe.

87 3.8851 .92038

c1. I sse ere is ifferee bewee Isaiaraee sees a veia araee seesi ers f rei faiiies.

87 4.0230 .77725

c2. I fee a e Isai araee see wi a

vae bsiess. 87 3.5747 .84402

c4. I ik a cgc as e a jb i rie Isai araee see.

87 2.8276 .89191

Vai n (iswise) 87

As a be see, ere are 87 reses fr ese qesis. te firsqesi (B3) is iee ae e reses iis eavaiabii f ifrai eraii e Isai araee see

rvie b cgc. te fii sws a s f e resesfee a e see is rer arkee r re, wias rese i a ess ifre SmEs i f e servies, asiiae b e ea res 2.93.


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te ex qesi (B4) aes easre e resesersai f e ifferees bewee Isai a veia

araee sees. I aears a s f e reses aree aere is a ifferee bewee veia a Isai araees, ase ea res is 3.92. tis is ver ieresi bease e res asraie e fiis i e revis qesi, B3, a iiaea ess ifre SmEs sie ab e Isai araee see

rvie b cgc.Sbseqe, qesi B5 easres e wiiess f e

reses se a fr f fiai base Isai riies.ms f e aree a are wii se e fiai a is base Isai riies if is ki f fiai is avaiabe, as eviee

b e ea vae f 3.89.te ex qesi, c1, ais assess e reses view

e rei faiiies ffere b e Isai a veia seesa weer ere is a ifferee bewee e sees. te eares is 4.02 a sr iiaes a e reses fee aere is a ifferee i er f rei faiiies ffere b e wsees. tis res is i s wi e revis ress i qesis

B4 a B5. We e reses are aske ab eir ereis weer e Isai araee see w a vae eir

bsiesses (qesi c2), eir resses are eera era,a i a be are a ere is a ee fr e reses aree wi e saee, as iiae b e ea vae f 3.57.

te aswers ive e as qesi i is sei (c4) swa favrabe resse wars e saee a e crraias e a jb i ri e Isai araee see, wi

a ea res f 2.83. te res irrrs e revis qesi i B3a ers e eve f awareess as e SmEs erereersi reai e Isai araee see.

B. Respondents Perceptions of the Knowledge of Bank Staff

Referri tabe 3, eera e qesis i is sei assesse ereis f e ariias ab e qaifiais f

e eees wrki i e Isai fiae isr a eiraies wars e erereers a eia ies base ereses exeriees i eai wi e saff, iis, a eir


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exeais f e servies e s reeive we iaisi wie saff. te qesis are esie i e fr f a (5-i) liker

sae.te ea res is 4.16 i e firs qesi d1, wi iiesa s f e reses aree a qaifie a resref saffi Isai fiae wi a reibii a a siive iae f be eee a e a a s, wi eae e iesfiee i e a a is servies. tis a be reae as a

i far fr e ies eae i e rs a servies.te ex qesi (d2) is re ab ai e reses

exeriees we ersa eai wi saff eri Isaifiaia rs a servies, a ieifies weer saff aexai si a saisf e ies wi e exaaisive. te ea iiaes 3.57, esrai a eera ereses eier aree r isaree wi e saee, b ereis a ee wars areee.

te ea e f 4.31 f e ir qesi (d3) firsa ever ie e reses ea wi e fiaia isii,e exe e saff ave a ersai r kwee f

e rs a servies a be abe serve e e axissibe exe.

prressi qesi d4, e ea res is 2.56, wiiiaes a e ajri f e reses rejes e saeea ffiers se asis are biase wars Isai fiaia

rs b ifri e ies a ere is ifferee beweeIsai a veia fiaia rs. tis res firs ee i qesi d2.

mvi e fif qesi, wi reqess e reses rae e servies reeive we eai wi e isiis, sf e se be era, a is is iiae b e ea res f3.43. te as qesi i is sei (d6) evaaes e iraef e saff e ies i e Isai fiaia isiis. ts,we e qesi saes a e ie es reqire avie fre saff, s f e reses rejee is saee, as iiae

b e ea vae f 2.59.


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Table3:DescriptiveAnalysisofEmployeesKnowledge


Deviation

d1. I fee re fie iaisi wi saff w avereesive ersai f Isai fiae a

baki.87 4.1609 .69673

d2. te ffier exai ab Isai araeesees we weever I aske i.

87 3.5747 .70928

d3. We I a iaisi wi e cgcs r baks ffier,I asse a e/se as sffiie kwee ab e

rs.87 4.3103 .73628

d4. te ffier se asis e a ere is ifferee bewee Isai araee sees aveia araee sees.

87 2.5632 .87206

d5. hw rae e servie a avie ive b effier Isai araee sees?

87 3.4253 .64035

d6. I ee e avie as I a eie sef. 87 2.5862 1.07348

Vai n (iswise) 87

C. Governments Role and Its Impact

on Awareness, Perceptions and Employees Qualifications

I is sei, e aasis is ivie i fr sees: everes re, e veres re i eai eeesqaifiais, e veres re i eai e awareess fIsai cgS, a e veres re i ereis f e Isaiaraee see. te qesis are i e fr f a liker sae.

(i) Thegovernmentsrole

As iiae i tabe 4, e ajri f e reses areera wars e firs qesi (E1) i is sei, werebe ea res is 3.06. te i eera eier aree r isareeab e effr a as bee exee b e vere irer re a erae erereers e eIsai araee see rvie b cgc. te res is as is wi e es erive fr qesis B3 a c4 wi

eera aree a e ifrai ab cgc is wiesreae as e SmEs i.


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te se qesi, E2, exibis a ea res f 2.94 aiies a s f e reses aree a a

see ire b e vere i e arke fr eerereers is siabe fr e. desie e ea vaeswi a e ajri f e reses aree wiis saee, e aie f e ea is ser e era

i, wi iies a se f e reses se beera is isse.

te ex qesi (E3) fses e ivvee f evere i servisi e aaee f cgc, ariari e Isai fiae isr. ta e resee f evere wi eae e iae f e isii a is

rs as e bi is sre b e ajri f ereses, as eviee b a ea vae f 4.05.

I qesi E4, is s ais a ieifi e ariiasereis f e veres ais i ri bIsai a veia baki (sisi f e araeesee) sses. te fiis iiae a ea vae f 3.56ii a s f e reses are era is isse,

b e eree f e ea is earer e i f areee se asis.

Table4:DescriptiveAnalysisoftheGovernmentsRole


Deviation

E1. te vere as e a jb i eiIsai araee sees rw i is r.

87 3.0575 .84021

E2. A see a is sre b e vere

eas a i is a see e. 87 2.9425 .78290

E3. gvere ivvee wi irease e reibiif Isai araee sees as e bi

ariar, e SmEs.87 4.0460 .76109

E4. Seies I e fse we I see a evere is ri re Isai a veiaaraee sees siaes.

87 3.5632 .83110

Vai n (iswise) 87

(ii) ThegovernmentsroleinenhancingemployeesqualificationsAs a be see i tabe 5, e ea res fr qesi E5 is4.26 a is iiaes a s f e reses aree aavi sffiie kwee f Isai fiae is i ria


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fr se w wrk i e baki a fiaia isiis.Frerre, e reses beieve a e vere a

a e ai re i is aer b efri reais areqire ever isii a ffers Isai baki servies rvie sffiie raii eir saff.

te res fr qesi E6, is a bi iffere fr E5. terevis res firs a s f e reses aree ae vere s a a faea re i esri ae isr as kweeabe wrkers i Isai fiae.hwever, i E6 wi a ea res f 3.60, e ajri f ereses is ser era a views e ve ake be vere esabis seifi eari eres fr Isaifiae as isiifia a eessar. nevereess, eaie f e ea is ver se e i f areeewi e qesiaire saee.

Table5:DescriptiveAnalysis

oftheGovernmentsRole-EmployeesQualifications


Deviation

E5. I beieve a e vere s ake isr fr saff w wrk i e Isai fiae a

baki ser ave arriae kwee i e fie.87 4.2644 .73863

E6. te ve ake b e vere esabisisiis a ffer qaifiais i Isai fiae wiirease e effiie a kwee f e eees.

87 3.5977 .72272

Vai n (iswise) 87

(iii)Thegovernmentsroleinenhancingawareness

As eie i tabe 6, e ea res fr qesi E7 is 3.77, ais iiaes a a ajri f e reses eier aree risaree wi e saee a e veres iies averibe eir awareess f Isai fiae. nevereess,e eree f e ea is ver se e i f areeewi e saee. tis res a be exaie b e ajrif e reses faire fw e aia ews, eseia vere iies. terefre, e se be era

is isse. te ex e i qesi E8 firs e revisres i E7, as e reses se be era weer evere ives ieives erereers si e Isaiaraee see.


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Table6:DescriptiveAnalysisoftheGovernmentsRole-Awareness


Deviation

E7. gvere iiiaives re maasia as areia fiaia b i e Isai fiae a bakiisr ave raise awareess f e Isaifiai rs.

87 3.7701 .80263

E8. I kw a e vere as ive aieives e erereers w se Isai araeesees.

87 3.1494 .80013

Vai n (iswise) 87

(iv)Thegovernmentsroleinthedevelopmentofperceptionof

IslamicCGS

tabe 7 bew sws e ea res f 4.13 fr qesiE9, wi eas a e ajri f e reses areea if re ieives are ive se w se e Isaiaraee see, is a siae e erereers esire eae ese servies. te ex qesi (E10) is srei eaive wri, s a e researer a kw weere reses aswer e qesiaire rf r vieversa. te e f e ea is 2.68, siifi a a areber f reses beieve a e rrae iiiae

b e vere re e Isai araee seeswi re se siive ress. tis res is sre b

revis es, eseia i qesis B3 a c4, wiesrae a a ajri f e reses are ki frifrai Isai araee sees.

te ea f e ex qesi E11 is a 4.00, iiaia s f e reses ave fai i e veres

rraes, ariar Isai fiae.


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Table7:DescriptiveStatisticsontheGovernmentsRole-Perception


Deviation

E9. I ik if re ieives are ive Isaiaraee see ies, i is ike a reerereers wi iise e servies.

87 4.1264 .71210

E10. I beieve a e rrae iiiae b evere re Isai araee sees isiiffere e.

87 2.6782 .89565

E11. te re rraes raise b e vere Isai fiai, e re fie I a iisee Isai araee see.

87 4.0000 .73136

Vai n (iswise) 87

D. Perceptions on Training and Education of Bank Employees

Qesi d7 asks e reses rak e irae earibe e ieifie isiis i ers f eir ressibiii ireasi e qaifiais f bak saff wrki i e Isai

baki ser. te ea vae e is ae i e s

easre e irae f ea ar a e ress are eie itabe 16.

Table8:TheMeanRankingofPartiesinTermsofEmployeesQualification

Government Employers Employees

Banksorfinancial

institutionassociations

ConsumerAssociations

2.01 2.45 3.52 2.73 4.29

te ress sw a ser assiais is se as es ira ar a s wrk fr e irvee f eqaifiais f eees w wrk i is ser. te eeesfar ies e se rak, fwe b e baks r fiaiaisii assiais, e eers a e vere. teres is sreee b e ress re b e -araeri

ess Keas ta as sw i tabes 17 a 18. te exaaierive fr e ress iies a fr ea aswer se b ereses, ere is a rreai fr e aswer aer. te


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siifiae eve sws e sre f rreai bewee easwers ive. Fr exae, i tabe 16, e reses asweri

d7-1 ave e ee se d7-2 as we, as a seearaswer e revis e. te ex aswers as sw a siiaraer.

Table9:CorrelationAnalysisinTermsofEmployeesQualification

D7-1Ifyouthinkthatstaffshouldfurtherbetrained,how

doyourankintermsofresponsibilitytoincreaseemployeesqualificationsinIslamicfinanceandbanking(1stRank)


doyourankintermsofresponsibilitytoincreaseemployeesqualificationsinIslamicfinanceandbanking(2ndRank)

Keasa_b

d7-1 If ik a

saff s frerbe raie, w rak i ersf ressibii irease eeesqaifiais iIsai fiae a

baki (1s Rak).

crreaiceffiie

1.000 -.314**

Si. (2aie)

. .001

n 87 87

d7-2 If ik asaff s frer

be raie, w rak i ersf ressibii irease eeesqaifiais iIsai fiae a

baki (2 Rak).

crreaiceffiie

-.314** 1.000

Si. (2aie) .001 .

n 87 87

**. Correlation is significant at the 0.01level (2-tailed)

Table10:CorrelationAnalysisinTermsofEmployeesQualification


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doyourankintermsofresponsibilitytoincreaseemployeesqualificationsinIslamicfinanceandbanking(3rdRank)


doyourankintermsofresponsibilitytoincreaseemployeesqualificationsinIslamicfinanceandbanking(4thRank)


doyourankintermsofresponsibilitytoincreaseemployeesqualificationsinIslamicfinanceandbanking(5thRank)

Keasa_b

d7-3 If ik a saffs frer beraie, w rak i ersf ressibii

ireaseeeesqaifiais iIsai fiaea baki (3rRak)

crreaiceffiie

1.000 -.351** -.333**

Si. (2 aie) . .000 .000

n 87 87 87

d7-4 If ik a saffs frer beraie, w rak i ersf ressibii ireaseeeesqaifiais i

Isai fiaea baki (4Rak)

crreaiceffiie

-.351** 1.000 .008

Si. (2 aie) .000 . .932

n 87 87 87

d7-5 If ik a saffs frer beraie, w rak i ersf ressibii ireaseeeesqaifiais iIsai fiaea baki (5Rak)

crreaiceffiie

-.333** .008 1.000

Si. (2 aie) .000 .932 .

n 87 87 87

**. Correlation is significant at the 0.01level (2-tailed)

Table11:One-SampleTestonNumber

ofEmployeesversustheAvailabilityofInformation

Testvalue=0

t dfSig.

(2-tailed)Mean

Difference

95%ConfidenceIntervalofthe

Difference

Lower Upper

d aree a e ifrai Isai araee sees is wiesreae as e SmEs i?

24.673 86 .000 2.93103 2.6949 3.1672

Referri tabe 19, i sws a e resses qesi B3


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re a siifia res ( (86) = 24.67, 0.05) a 95% as e fiee eve fr esaee a vere ri sraeies ase fsias e reses. tis e is frer sreee be res aieve i e K Ieee Saes es as israe itabes 21 a 22.


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Table13:K-IndependentSampleTestontheEffectoftheGovernmentsAction

onthePromotionalAspectforBothSchemes(basedonnumberofemployees)

Numberofemployees N

MeanRank

Seies I e fse we I seea e vere is ri reIsai a veia araee seessiaes.

less a 5eees

32 43.95

Wii 5-19eees

32 49.66

Wii 20-50eees

15 37.73

Wii 51-150eees

8 33.31

ta 87

Table14:K-IndependentSampleTestontheEffectoftheGovernmentsAction

onthePromotionalAspectforBothSchemes(basedonnumberofemployees)

Test Statisticsa,b

SometimesIgetconfusedwhenIseethatthegovernmentistryingtopromoteIslamicandconventionalguaranteeschemessimultaneously.

ci-Sqare 4.569

f 3

As. Si. .206

a. Krska Wais tesb. gri Variabe: A4 Size f Eees

I tabe 21, e res sws a e ifferee f ea variabe is

ver sa bewee e a aer, s ifei e siifiaef e aasis, as esribe i tabe 6.37, a is siifies eisiifia e f e aasis (sie > 0.05).

Table15:One-SampleTestontheGovernments

InitiativesandtheConsequence

Testvalue=0

t dfSig.

(2-tailed)Mean

Difference

95%ConfidenceIntervalofthe

Difference

Lower Upper

gvere iiiaives remaasia as a reia fiaia b iIsai fiae a baki israve raise awareess f e Isaifiai rs.

43.813 86 .000 3.77011 3.5991 3.9412


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te reses are aske exress eir iis everes iiiaives i ri maasia as a reia b

i Isai fiae a baki a weer is as ribe e iivia reses awareess f Isai fiae rs.tabe 23 sws a a oe-Sae tes is r fr qesi E7,a i res a siifia res ( (86) = 43.81,


25/28



ariar e Isai rei araee see, is ver sarea wiesrea e as erereers. te eire

erfrae f e Isai araee see as are isveia erar israes e isari f e seeesie rw i e Isai araee sees erfrae.

geera, s f e erereers, b msi r -msi, are wii iise e Isai araee see we ies seri araees fr fiai, if ifrai esee is avaiabe a e feares f e see are isiisabeare e veia see. Frerre, eir awareessf Isai baki a fiae is eera e e effrsae b e vere i ri e isr. ts, ecrrai s aiaise is avaae b everai

r evee a b iesive ri f eir Isai-base rs.

hwever, e ak f ifrai , a ria ases f,e Isai araee see reqires cgc se aressivearkei if i is rea seris ab ireasi e ai fIsai araee sees. I e firs ae, cgc ees resve

w i was sii e Isai araee sees: es i wa are msi erereers r es i wa e Isai rs a is rae f rs avaiabe sers rearess freiis fai?

Eve e vere as bee e bakbe f eevee i Isai fiae a baki i maasia, ere areisses ariar e bi ersai f e veres

iies a ais i severa fiaia aers. te ieeai

f a a baki sse, a ivi fexibii, eraieii a effiie, as reaes fsi, ariar se w are isae fr ifrai e rs ea baki. tis isai a be e irae, aie, weve f eai, ie srais e ifrai, e.

Se sesis e aaee f cgc eve eIsai araee sees are: esabisi searae ivisis awi aae e Isai araee sees ieee, ei

e-s-eres i ever isri i maasia, a iri e besaes w ave sffiie kwee i Isai fiae. tereai f searae ivisis i aai Isai araee sees


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wi re eii bewee e Isai araee a isveia erar. te ke erfrae iex (KpI) f ea

saff wi be base e ber f Isai araees a avebee iise b eir ies. tis is siiar e raie f Isaibaks i evaai eir saes fre vis-a-vis e sae f Isaibaki rs. Sbseqe, is wi eiiae e aessesse b se cgc saff e e fa a eir erfraees ave a ire reaisi wi e erfrae f e Isaiaraee see.

te ei f e-s-eres i ever isri wi reee ravei isae f rseive ies, eseia fr SmEserereers w resie i rra areas. Frerre, is wifaiiae beer a bewee cgc a e erereers, aee wi irease eir awareess eraii cgcs fisa e avaiabii f Isai araee sees. I aii, e

resee f kweeabe saff i Isai fiae is a exeeivese fr cgc sie e are abe exee eir asksiie b wi as e i eraiai e bias wars e Isaiaraee sees. te bias rs e eaive erei

wars Isai fiaia rs ase b iie kweer exeriee we seei a e Isai fiaia rs areiiffere veia rs.

tis ase s cgc a is a fferi f Isai rsasie e veia araee sees rvies a israif is. nevereess, e maasia exeriee f e a sseas rvie a avaaes are e re reviaree ai f a a Isai sse s as i Sa a

pakisa. As is seari is i ersis i fre, e wa frwarfr cgcs Isai araee see ies i arkei a rias we as aaee f ser erei.


27/28



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sme's perception of the credit grantee

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