Fostering Micro-Entrepreneurship as Panacea to Poverty Eradication in the Malaysian Economy: A Conceptual Perception

Abstract

Entrepreneurs not only create benefits through the expansion and the development of economic and business industry, it also creates challenges for emerging micro-entrepreneurs to effectively compete in an environment characterised by multitude of challenges. The question is whether the development of micro-entrepreneurship industry is a progressive approach that can motivate the small and medium entrepreneurs to eradicate poverty. This paper is a deliberate attempt to revisit the essential concept and practice of micro-entrepreneurship in small and medium industry as well as its role in eradicating poverty in Malaysian. The Malaysian government has launched the New Economic Policy to eradicate hardcore poverty, restructuring employment and developing the rural area of Malaysia. It has been determined that the development of micro-entrepreneurship significantly contributed to small and medium industry and poverty eradication. Furthermore, the success of poverty eradication has significantly created awareness among micro-entrepreneurs in small and medium industry. In this paper, a comprehensive model of micro-entrepreneurship strategy in small and medium industry in eradicating poverty has been constructed with the aim of assisting the Malaysia government in developing their socio-economic policies.

Areas of small business development in Ukraine in the conditions of European integration

“…World experience (Sohns & Diez (2018)) proves the high efficiency of small business, which is achieved through specialization, the ability to produce goods needed by the market, to meet the needs in scarce services, to manufacture custom products. Small business entities are completely independent in carrying out economic activities, have all the capabilities to ensure the management of production, supply, and sales on the basis of simple organizational structures with a minimum number of administrative staff (Halim et. Al (2014)).…”

Single Mothers in Malaysia: Survivability, Entrepreneurship and Empowerment

“…Like other developing countries, Malaysia has taken a long time through the idea of micro-entrepreneurship to introduce poverty reduction policies. The objective was to lead in 1970 to socio-economic transition through the new economic policies (Halim, Zakaria, Hamid, & Khalid, 2017).…”

“…Malaysia has undergone a long process of economic, social, and political reforms over the last decades to increase Malaysian socio-economic well-being, boost entrepreneurial literacy, and contend with poverty at all levels of society. The Malaysian administration recognizes entrepreneurship as a fundamental building block of national economies, contributing substantially to job growth and poverty reduction (Halim et al, 2017). Entrepreneurial activity, a key to economic growth and development, fosters prosperity through new jobs, unemployment alleviation, and improved economic growth and regional development (Kareem, 2015).…”

“…Therefore, the business concept practice is essential in developing microentrepreneurs in information growth, skill development and entrepreneurial features (Halim et al, 2017). Entrepreneurship growth contributes to poverty by generating jobs through the launching of new entrepreneurship to expand existing ones.…”

“…Several governmental corporations, such as the Federal Land Development Authority, the Small Holders Developing Authority of the Rubber Industry (RISDA), and the Federal Land Consolidation and Rehabilitation Agency, have been established to enact these policies to address poverty (FELCRA). These businesses establish special schemes and programs to eradicate poverty (Halim et al, 2017). In Malaysia, social entrepreneurial practice in NEP creates better lives for human beings, business education, industrial expansion and employment (Halim et al, 2017).…”