Sustainable Development of Women Micro-Entrepreneurs in Malaysia: Factors Affecting Adoption of Rotating Savings and Credit Association (ROSCA)

Rotating savings and credit association (ROSCA) is a form of micro-credit scheme that enables the low-income group to have access to financial services. There is an increasing need for ROSCA especially by women micro-entrepreneurs since this group would normally face difficulties in obtaining financing from the banking institutions. ROSCA can be a sustainable financing tool for the women micro-entrepreneurs in sustaining their business as it enables the available resources to be used efficiently and responsibly. This study applies a qualitative analysis through in-depth interviews with 10 women involving in micro-enterprises that adopted the concept of ROSCA in Eastern regions of Malaysia, namely the Kelantan and Terengganu states. The results showed that ROSCA has enabled the women micro-entrepreneurs to resolve the issues relating to financial shortage in capital while doing business. The women micro-entrepreneurs are found to use ROSCA as an alternative to ensure a sustainable funding for their business, thus increasing financial inclusion in the economy. Keywords—ROSCA; Sustainable development; Women micro-entrepreneurs