P2P Financing Adoption of SMEs During the Covid-19 Pandemic
19 Pages Posted: 23 Jan 2023
Abstract
While peer to peer financing (P2P) is considered easy to access, the adoption rate of this service in Malaysia is still relatively low. Many Malaysian SMEs are suffering from the pandemic COVID-19. This paper aims to examine SMEs' intention to use the P2P platform to obtain financing. Technology acceptance model (TAM) is used as a base model. The model employs perceived security, perceived usefulness, perceived ease of use, attitude, impact of COVID-19, challenges, and SMEs survival amid COVID-19. A survey involving 109 SMEs and structural equation modeling is used to examine the relationship among the proposed constructs. The perceived usefulness and perceived security of the platform is an important indicator for SMEs to raise funds via alternative financing. P2P operators should further improve the security of the platform to protect data privacy of SMEs. We also reported that SMEs' attitudes partially mediate their intention for perceived security and perceived usefulness. SMEs show high intention to rely on this platform as they are majorly impacted from COVID-19. We expect the result of this study to be beneficial to P2P operators and policy makers, to enhance strategies and improve the platform for the interest of SMEs.
Keywords: P2P financing, challenges, survival, COVID-19
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