Growth challenges of SMEs: empirical evidence in Sabah, Malaysia. ASEAN Entrepreneurship Journal, 6 (1). pp. 8-14. ISSN 2637-0301 (2020)
Abstract
Small Medium Enterprises (SMEs) are currently facing a more challenging business environment due to the fast-changing customer preferences, globalization, stiff competition, limited resources, and human resources issues, among others. The failure rate of SMEs in Malaysia is alarming, whereby 60% of the new SMEs fail within five years of establishment. Additionally, only 4 out of 10 SMEs are able to successfully meet the challenges associated with growth. The SMEs barriers to growth have been a long-unsolved problem in this country. Therefore, this paper aims to explore the barriers to business growth among SMEs. Face-to-face interviews with the founders of the businesses were conducted. Eleven entrepreneurs were interviewed in Kota Kinabalu, Sabah, Malaysia. It was found that there are five main barriers to business growth namely; financial issues, human resources problems, marketing strategies, facilities, appliances and layout and problems with suppliers. This paper offers recommendations to SMEs to overcome the barriers to growth.
| Item Type: | Article |
|---|---|
| Keywords: | SMEs, Micro business, Entrepreneurship, Growth challenges |
| Taxonomy: | By Subject > Entrepreneurship > Business Fundamentals By Subject > Entrepreneurship > Business Planning |
| Local Content Hub: | Subjects > Entrepreneurship |
| Depositing User: | Haryati Ramlee |
| Date Deposited: | 14 Jan 2021 23:30 |
| Last Modified: | 14 Jan 2021 23:30 |
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