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.