Authors : Wan Fauziah Wan Yusoff, Mudashir Gafar, Shafie Mohamed Zabri and Siti Sarah Omar
Abstract: Small and Medium Enterprises (SMEs) play a vital role in the Malaysian economy and are considered as the backbone of industrial development in the country. However, Malaysian SMEs’ value added is very much lower than that of large-scale enterprises. The low productivity of physical inputs or factors efficiency may be attributed to the low level of value added. A first step to stimulating entrepreneurship is mapping and measuring the existing entrepreneurial ecosystem. This analysis allows for diagnosis of potential challenges and opportunities that can be addressed through specific interventions. Therefore, the main objective of the study is to explore what and how entrepreneurial ecosystem among SMEs in Malaysia contributes to the development particularly on wealth creation, employment and poverty eradication. Based on previous study six main entrepreneurial ecosystem variables will be explored (the government policy, finance, culture, support, markets and human capital) in relation to their impact on business performance of Malaysian SMEs. This conceptual paper is expected to contribute a theoretical development/model of the ecosystem of SMEs in Malaysia and to justify the need for the enhancement of SMEs entrepreneurship policy. The second phase of this research is expected to provide further feedback to enhance SMEs and entrepreneurship policy and to give some suggestions for SMEs in enhancing their business performance. Finally, it is hoped that this study can produce a segment in a more inclusive global picture of the entrepreneurial ecosystem of SMEs in Malaysia.
Wan Fauziah Wan Yusoff, Mudashir Gafar, Shafie Mohamed Zabri and Siti Sarah Omar, 2016. An Analysis of Entrepreneurial Ecosystem Among Small Medium Industries (SMEs) in Malaysia: A Proposed Model. International Business Management, 10: 3762-3769.