Factors Influencing Growth of Entrepreneurial Ventures in Malaysia
As a developing nation, the growth of successful small-medium enterprises (SMEs) in Malaysia plays a very crucial role in the improvement of the country's economy and unemployment issues. This study is conducted to identify the success factors of founding entrepreneurs which contributes to v...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English English |
| Published: |
2007
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| Subjects: | |
| Online Access: | http://psasir.upm.edu.my/id/eprint/6897/1/GSM_2007_7.pdf |
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| Summary: | As a developing nation, the growth of successful small-medium enterprises (SMEs)
in Malaysia plays a very crucial role in the improvement of the country's economy
and unemployment issues. This study is conducted to identify the success factors of
founding entrepreneurs which contributes to venture growth, specifically, the
relationship between venture growth and the entrepreneurs' personal initiative and
human capital, the areas of competencies to be focused on, and the effectiveness of
support programs provided by the government.
One hundred (100) CEOs of entrepreneurial ventures are selected from the
Enterprise 50 database to participate in the research through the convenient and
snowballing sampling methods. Survey questionnaires are used to gather
information for quantitative data, whilst qualitative data are obtained from
interviews. The reliability of the questionnaire is tested using Cronbach's alpha and
factor analyses are conducted to categorize the competencies. The relationships
between the various constructs are examined using nonparametric statistical analysis, namely, Binary Logistics Regression, Spearman's rho, Mann-U test and Kruskal
Wallis test.
The study finds that there is positive significant relationship between venture growth
and entrepreneurs who have personal initiative and working experience and who are
focused on specific competency areas within operations, finance, and human
resources. The study also discovers that there is significant negative relationship
between venture growth and entrepreneurs who have high levels of education, and
parents who owned business. In operations, founding entrepreneurs are found to be
concerned with competitive strategies planning and the improvement of product and
services. Raising capital fiom banks and institutions is the only area of concern in
finance. In human resources (HR) the areas considered important are recruiting and
retaining employees; HR policies and compensation plan; training and development;
delegating and relinquishing control; developing performance appraisal; and
motivating employees. Marketing is found to have a significant negative relationship
with venture growth. The study reveals that there is no significant relationship
between social network support, government support programs and venture growth. |
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