LEVEL OF KNOWLEDGE IN THE FIELD OF FINANCIAL MANAGEMENT FOR MICRO AND SMALL COOPERATIVES IN MALAYSIA

Abstract

As crucial drivers of a nation's economic advancement, cooperatives must possess relevant understanding and proficiency in financial management to ensure continuous and progressive development. This research, therefore, holds significant implications for the cooperative sector in Malaysia. It aims to assess cooperatives’ level of knowledge on financial management, focusing on five specific scopes: working capital management, budget management, capital management, financial reporting, and financial information systems. A questionnaire (quantitative method) was used as a data collection instrument, and 221 treasurers, assistant treasurers, and relevant management personnel from micro and small cooperatives participated in the survey. The research findings, which categorise cooperatives via different zones across Malaysia, indicate that the most complex topic is working capital management, followed by financial information systems. In contrast, budget management and financial reporting are perceived as simple topics with no challenging elements. These findings underscore the need for immediate action to enhance the knowledge and practices of the cooperatives in specific financial management topics, particularly in the areas of working capital management and financial information systems.