A Study Of Motivation In Business Start-Ups Among Malay Entrepreneurs

Abstract

The effect of entrepreneurships in developing economies was studied widely in prior researches, since entrepreneurs contribute significantly in economics development. The purpose of this study is to explore and understand Malay entrepreneurs in the eastern region of Peninsular Malaysia; who are the majority ethnic group in the area. The study is concentrated on the motivation factors that influenced their decision to start up new businesses. This study also examined problems faced by those entrepreneurs, both during start up stage and during present operation. Basic variables on entrepreneurs background and their business characteristics were taken into account.The motivational factors were examined using a modified model from Scheinberg and MacMillan. The primary data collections methods were structured interviews and surveys. Statistical Package for the Social Science (SPSS) was used in analyzing the data. Frequency and descriptive analysis were used to examine the basic variables and problems facing the entrepreneurs. Factor analysis was applied to determine the motivation factors. In addition, ANOVA and MANOVA were used to test the hypotheses developed.The study shows that majority of Malay entrepreneurs are male. One third of the entrepreneurs are well educated up to the tertiary level. Almost all of them are married and has worked in three different fields prior to starting their own business. They were involved in operating small business for others, worked as Government servants or in private firms. A majority of their parents operate their own business. Major problems in conducting business lies in stiff competition from others and also insufficient initial capital. Seven motivational factors were determined to have influenced Malay entrepreneurs to start up business. The most influential factors are spiritual liability, personal development and satisfaction, and financial security. Other important factors are opportunities, freedom, accommodation and escapism. Meanwhile, five hypotheses were developed for this study. The result shows that the level of education of entrepreneurs is significant with reference to the motivational factors. On the other hand, gender, previous work and parents occupation are of no significance. However, combination of gender and level of education showed certain level of significance with reference to their motivational factors.

Factors motivating women's informal micro‐entrepreneurship

“…Information regarding women's motivations to enter this type of work thus remains scarce. Most studies on the motivational factors for women's entrepreneurship in Malaysia have placed main emphasis upon larger size and more formalized business activities (Gadar and Yunus, 2009; Ismail, 1996; Ismail et al , 2006; Salleh and Osman, 2007; Teoh and Chong, 2007). In some cases women's hawking has fallen outside the scope of these studies because women's small scale‐ or micro‐entrepreneurship have not been classified as “true entrepreneurship” (Hanson, 2009).…”

“…In some cases women's hawking has fallen outside the scope of these studies because women's small scale‐ or micro‐entrepreneurship have not been classified as “true entrepreneurship” (Hanson, 2009). Ismail et al (2006, p. 105), for example explain the low rate of women in their study by stating:Even though there were many women small business owners located in the area of studies, not many were pursuing to become successful entrepreneurs. Many of them were conducting business to earn a living for their family and have no plan to expand further.…”

Understanding the Sociological Aspects Impacting the Business Endeavour Among Bumiputera Graduates

“…Besides that, through working experiences, the individuals may develop specific skills and may also help individuals gain knowledge about the industry and identify opportunities to create businesses (Olaechea, 2018). Ismail et al (2006) found that the type of experience from the former work does not significantly influence the individuals' decisions to start up their business. However, a more recent study showed that individuals with experience in management have a higher likelihood of new ventures (Xi et al, 2016).…”

Food Festival Exhibitors’ Business Motivation

“…Research on business startup motivation is also carried out, taking into account specific groups of entrepreneurs, e.g., age or gender. According to the results of Ismail et al [32] and Hazudin et al [33], startup business motives vary based on gender. Women are more likely to engage in business to keep work in balance with family needs, so financial security is very important.…”