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Measuring perceptions of business challenges: the case of Malaysian SMEs

Journal Article


Abstract


  • This paper develops and applies a survey instrument to discover

    what small and medium sized enterprises (SMEs) in Malaysia see as their

    primary business challenges, using a sample of 138 firms. An exploratory

    factor analysis yields five key factors: respondents’ perceptions of

    government policies, human capital, availability of infrastructure,

    business competition, and financial issues. Reliability and item analyses

    provide support for the internal consistency of these factors and the

    discriminatory power of survey items that constitute the factors. In

    particular, this study finds that perceptions of government policies and

    infrastructure availability have the highest mean scores, suggesting that

    these factors are viewed as the primary business barriers. On the other

    hand, respondents did not perceive financial issues as being a major

    barrier.

    A key finding from the empirical results presented is that the

    Malaysian government must play a pivotal role in the further development

    of the SME sector. However, this will require considerable improvement

    in a number of policy areas as well as a change in emphasis if the SME

    sector is to make a substantive contribution to the country attaining

    developed economy status by 2020.

Publication Date


  • 2012

Citation


  • Saleh, A. S., Caputi, P., Harvie, C. & Kuppusamy, M. (2012). Measuring perceptions of business challenges: the case of Malaysian SMEs. Journal of Asian Business, 24 (3), 35-56.

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/157

Number Of Pages


  • 21

Start Page


  • 35

End Page


  • 56

Volume


  • 24

Issue


  • 3

Place Of Publication


  • http://www.umich.edu/~cibe/faculty/jab.html

Abstract


  • This paper develops and applies a survey instrument to discover

    what small and medium sized enterprises (SMEs) in Malaysia see as their

    primary business challenges, using a sample of 138 firms. An exploratory

    factor analysis yields five key factors: respondents’ perceptions of

    government policies, human capital, availability of infrastructure,

    business competition, and financial issues. Reliability and item analyses

    provide support for the internal consistency of these factors and the

    discriminatory power of survey items that constitute the factors. In

    particular, this study finds that perceptions of government policies and

    infrastructure availability have the highest mean scores, suggesting that

    these factors are viewed as the primary business barriers. On the other

    hand, respondents did not perceive financial issues as being a major

    barrier.

    A key finding from the empirical results presented is that the

    Malaysian government must play a pivotal role in the further development

    of the SME sector. However, this will require considerable improvement

    in a number of policy areas as well as a change in emphasis if the SME

    sector is to make a substantive contribution to the country attaining

    developed economy status by 2020.

Publication Date


  • 2012

Citation


  • Saleh, A. S., Caputi, P., Harvie, C. & Kuppusamy, M. (2012). Measuring perceptions of business challenges: the case of Malaysian SMEs. Journal of Asian Business, 24 (3), 35-56.

Ro Metadata Url


  • http://ro.uow.edu.au/buspapers/157

Number Of Pages


  • 21

Start Page


  • 35

End Page


  • 56

Volume


  • 24

Issue


  • 3

Place Of Publication


  • http://www.umich.edu/~cibe/faculty/jab.html