Malay Entrepreneurship: Problems in Development A Comparative Empirical Analysis

ABDUL Aziz Mahmud. (1981). Malay Entrepreneurship: Problems in Development, A Comparative Empirical Analysis, Occasional paper no. 7. Yunit Penyelidikan Sosioekonomi, Jabatan Perdana Menteri, Kuala Lumpur.


Today, I am so lucky to find this thesis from UTM's library. The reference number is HB601.A32 1981 n.3

Malay Entrepreneurship: Problems In Development
A Comparative Empirical Analysis

Below are my notes from this dissertation:-

1. The author stated that (this research was published in 1981), 8 out of 10 (or 80%) will be Chinese shopkeeper rather than a Malay when he went to a shop to purchase anything.
2. In page 1, the author stated that, the situation of the Malays in business world was so weak that it was considered imperative for the government to intervene directly in the retail trade dealing in household groceries. Whether the policy itself is sound is immaterial here; it is unfavourable situation of the Malays in the business system of the nation that chiefly concerns our inquiry.  
3. It is interesting to know that, from this thesis, in business system of multiracial Malaysia is a resource in which the Malays participate mainly as consumers and as workers but very little as entrepreneurs, and even less as successful entrepreneurs.
4. Officially declared objective of the Malaysian government that the Malays will own at least 30 percent of the share capital of limited companies by 1990 with "New Economic Policy" (Dasar Ekonomi Baru). 
5. Thus, Malaysia's Third Plan focused on the development of an adequate number and quality of Malay entrepreneurs.
6. Services provided by the government are still limited and ineffective. Whether the government agency responsible is at fault is not too important at this stage because, in all likelihood, there are problems at several levels.

Problem Statement / Research Questions
The purpose of this study is to contribute to better understanding of problems involved in development of Malay entrepreneurship. More specifically it is an attempt by a public administrator to develop an integrated systems approach and a general theoretical framework for discussing the problems of entrepreneurial development. Secondly, it is an attempt to answer the following questions as they relate to Malay entrepreneurial development:-

1. Is there a degree of association or relationship with regards to Malay and Chinese entrepreneurs and their business practices and problems?
2. Is there a degree of association or relationship with regards to successful and unsuccessful entrepreneurs and their business practices and problems?

The differences in entrepreneurial problems explored in this research include:-

1. Management practices and problems
2. Financial and financial management problems
3. Sociocultural problems

Thus, the main question of this research is, "What in precise measurable terms are the essential differences and similarities between Malay and Chinese businessmen?"

Variables

1. Malay and Chinese entrepreneur (individual businessman)
2. (MONEY) Micro problems of small business.
3. (MAN) Values and attitudes of entrepreneurs.
4. (MANAGEMENT) Policies and practices embark by entrepreneur.

Control variables:-

a) Personal background of the entrepreneur

b) Company background

Method used in this research
- Comparative empirical analysis


Research findings

1. Many unsuccessful firms, especially Malay firms, characterized by low capital investments and considerable management uncertainty.
2. There is as yet no business tradition among the Malays.
3. Few European or Chinese financial institutions, were willing to provide venture capital for Malays to mount substantial enterprises. This factor acted as a barrier that kept the Malays out of business.
4. Many opportunities which appeared profitable to Chinese entrepreneurs with their access to capital markets and their experience and skills were not potentially profitable to the would be Malay entrepreneur [page 160].
5. Malays were effectively barred from gaining experience in business activities [page 160]. NOT TRUE!! .. What was involved was a "vicious circle" which had a stagnating on Malay business development. [What is "vicious circle"?]
6. In the past, well-educated Malays when thinking of a career, rarely thought of business -- rather they leaned toward government jobs.
7. The Malays have also tended toward occupations which were financially non-lucrative. They thus have found it difficult to accumulate large savings due to their generally impoverished conditions in the backwaters of the national economy. Many lived on an economic ragged edge where all the money was spent to satisfy the basic needs of human survival.
8. Malays made little use of debt financing. What debts existed were small-scale debts, and were most probably characterized by  a short-term nature, often apparently resulting in serious cash flow problems [HOW TRUE!]. 
9. Capital reserves were small among the Malays. The effect of limited financial resources was to restrict their entry and business activity to small businesses only.
10. The Malays appear to be just beginning to build the first generation of prototype (successful entrepreneurs).[Page 161].