Transformation Building of Micro- Entrepreneurs: A Conceptual Model

Authors: Abu Bakar Sedek Abdul Jamak, Saridan Abu Bakar, Zulkipli Ghazali, Roselind Wan

Abstract:

The majority of micro-entrepreneurs in Malaysia operate very small-scaled business activities such as food stalls, burger stalls, night market hawkers, grocery stores, constructions, rubber and oil palm small holders, and other agro-based services and activities. Why are they venturing into entrepreneurship - is it for survival, out of interest or due to encouragement and assistance from the local government? And why is it that some micro-entrepreneurs are lagging behind in entrepreneurship, and what do they need to rectify this situation so that they are able to progress further? Furthermore, what are the skills that the micro entrepreneurs should developed to transform them into successful micro-enterprises and become small and medium-sized enterprises (SME)? This paper proposes a 7-Step approach that can serve as a basis for identification of critical entrepreneurial success factors that enable policy makers, practitioners, consultants, training managers and other agencies in developing tools to assist micro business owners. This paper also highlights the experience of one of the successful companies in Malaysia that has transformed from micro-enterprise to become a large organization in less than 10 years.

Keywords: Entrepreneurship, Micro-entrepreneurs, Transformation, Customers

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1075553

References:

[1] Chaston, I (1996), "Critical Event and Process Gap in the Danish Technological Institute Structured Networking Model" International Small Business Journal. 14(3), pp 35-47.
[2] Herring, S. C. (2004). Content analysis for new media: Rethinking the paradigm. In: New Research for New Media: Innovative Research Methodologies Symposium Working Papers and Readings (pp. 47-66). Minneapolis, MN: University of Minnesota School of Journalism and Mass Communication.
[3] Mike Simpson, Nicki Tuck, Sarah Bellamy, (2004) "Small business success factors: the role of education and training", Education + Training, Vol. 46 Iss: 8/9, pp.481 - 491.
[4] Landry, P and Jalbert, T (2001). E-commerce strategies your shareholders will love, Journal of Corporate Accounting & Finance Volume 12, Issue 2, pages 45-53, January/February 2001
[5] Hofer, C.W. & Charan, R. (1984). The transition to professional management: Mission impossible? American Journal of Small Business, 9(1), 1-11.
[6] BH online 2 June 2010. http://www.bharian.com.my/
[7] National SME Development Council of Malaysia Small and Medium Industries Development Corporation (SMIDEC), 2004. http://www.smidec.gov.my/
[8] Wennekers, S. and A.R. Thurik (1999), Linking entrepreneurship and economic growth, Small Business Economics 13, nr. 1, 27-55.
[9] Audretsch, D.B., M.A. Carree and A.R. Thurik (2001), Does entrepreneurship reduce unemployment? Tinbergen Institute Discussion Paper TI 2001-074/3, Rotterdam: Tinbergen Institute.
[10] Audretsch, D.B. and A. R. Thurik (2000), Capitalism and democracy in the 21st century: from the managed to the entrepreneurial economy, Journal of Evolutionary Economics 10, 17-34.
[11] Carree, M.A. and A.R. Thurik (2003), The impact of entrepreneurship on economic growth, in Handbook of Entrepreneurship Research, D.B. Audretsch and Z.J. Acs (eds), Boston/Dordrecht: Kluwer Academic Publishers, 437-471.
[12] Department of Statistic Malaysia official website 2010. www.statistics.gov.my/
[13] BH online 28 June 2010. http://www.bharian.com.my/
[14] DTI (1999), Small and Medium Enterprise (SME) Statistics for the United Kingdom, 1998, Statistical Press Release, 5 August.
[15] Campbell, M., Daly, M., Gallagher, C. and Robson, G. (1991), "Job creation 1987-1989: the contributions of small and large firms'', Employment Gazette, November, pp. 589-96.
[16] LMQR (1993), Job Creation: The Contribution of Small and Large Firms, Department of Employment, August.
[17] Cosh et al., (1996). "Size, Age, Survival and Employment Growth, Chapter 1 in Cosh, A. and A. Hughes (eds.), The Changing State of British Enterprise: Growth, Innovation and Competitive Advantage in Small and Medium Sized Firms 1986-85. ESRC Centre for Business Research, University of Cambridge.
[18] Siu, W. (2000). "Marketing and company performance of Chinese small firms in Hong Kong", Marketing Intelligence and Planning, Vol.18 No. 5, pp. 292-307.
[19] www.flyingsolo.com.au/
[20] Romano,C. and Ratnatunga, J. (1995). "The Role of Marketing": Its Impact on Small Enterprise Research", The European Journal of Marketing, Vol. 29, No.7, pp 9-30.
[21] Gilmore, A., Carson, D. and Grant, K. (2001), "SME marketing in practice", Marketing Intelligence & Planning, Vol. 19 No. 1, pp. 6-11.
[22] Hogarth-Scott, S., Watson, K. and Wilson, N. (1996), "Do small businesses have to practice marketing to survive and grow?", Marketing Intelligence and Planning, Vol. 14 No.1, pp 6-13.