Intention Towards Using Loan in Income Generating Activities: A Conceptual Study Among Poor and Low-Income Households

Abstract

Despite the fact that the country has done a remarkable job of reducing poverty, globalization has brought with it some serious problems and worries. As the country moves into a new category of poverty, the following issues must be addressed. Malaysia is an impoverished country with a diverse population segmented by ethnicity and religion. In reality, Malaysia has the potential to exacerbate social ills. In Malaysia, poor individuals in both rural and urban areas because poverty has long been considered primarily a rural issue in Malaysia, with more than half of all family units falling into this group. As a result, Malaysia Government tends to provide loans is not strict requirements to generate income. Despite this, there is currently a lack of study on the impact of anti-poverty efforts on community welfare in Malaysia based on the perspectives of poor and low-income households using the loan to generate income through entrepreneurial activity. Indeed, the Theory of Planned Behavior is justified as an underpinning theory for investigating the links between the origins of entrepreneurial intent. Besides, recommendations from past studies suggested that entrepreneurial education must be included to assess entrepreneurial intentions. As a result, this paper capable provided a conceptual framework related to the Theory of Planned Behaviour to justify the goals of low-income people in relation to the Malaysian government’s incentive provided which is a non-strict requirement to obtain loans to improve their income through entrepreneurial activity by includes five variables: attitude, subjective norms, perceived behavioral control, and entrepreneurial competencies as well as entrepreneurial education.