PRELIMINARY RESEARCH:

INFORMATION AVAILABILITY ON ENTREPRENEURIAL

CREATION AMONG MALAYSIAN YOUTHS

By: Mohamad Sabrie Mohamad Salleh

Malaysia Entrepreneurship Project (http://mentproject.wordpress.com)

For: Youth Entrepreneurs Malaysia

1.0 INTRODUCTION

Malaysia Institute for Research in Youth Development estimates that there will be 11.65 million youth in
Malaysia which consists of 40.2% of the Malaysian population by the year 2010. Youth from IKBN
(Institut Kemahiran Belia Negara), ILP (Institut Latihan Perindustrian) and Giat MARA are found to have
more than 40% interest in pursuing a career in entrepreneurship (Bukryman, 2008). From previous
statistics, information availability should be determined as entrepreneurship is a wide interest among
Malaysian youth. This research defines “Malaysian youths” as those between the ages of 20-29. This
preliminary research is to provide an insight into information availability needed by Malaysian youths to
venture into startups or pursue entrepreneurship as a career.

2.0 OBJECTIVE

1. Identify demographic of Malaysian youths who require entrepreneurial information.

2. Determine specific business-related information needed by Malaysian youths.
3. Measure business financing awareness and purchasing threshold for business-related printed
materials among Malaysian youths.

3.0 RESEARCH QUESTIONS

1. What are the characteristics of Malaysian youth which require entrepreneurial information?
2. Which business sector would Malaysian youth likely venture into?
3. What is the specific business information needed by Malaysian youths to start a business?
4. Are the information on government assistance and debt financing easily found by Malaysian
youth?
5. What networking platform would help facilitate entrepreneurial creation among Malaysian
youths?
6. How much would Malaysian youths be willing to pay for a business-related printed material?

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4.0 BENEFITS OF RESEARCH

1. Determine demographic variables for companies and organizations which targets

“entrepreneurial information” audience.
2. Facilitate individuals and groups to create specific business-related information which is needed
by “entrepreneurial information” audience.
3. Help companies and organizations determine an effective networking platform for Malaysian
youths to build entrepreneurship skills.
4. Facilitate pricing strategy for companies and organizations which sell entrepreneurial
information to Malaysian youths.

5.0 METHODOLOGY

5.1 Introduction
This research is done on a preliminary basis, therefore the design is based on the value judgement of the
researcher.

5.2 Research Design

The research is based on extraction of data from primary source through a questionnaire. The
questionnaire is created based on the research questions.

17 questions were presented to respondents. The questions were a mix of open ended and close ended
questions. The close ended questions are a hybrid of yes/no and multiple choice.

The preliminary research omits measurement using ANOVA, correlation and variance analysis. This is to
ensure whether the information presented is feasible for future research undertakings.

5.3 Sampling
The research utilizes random sampling hence youth population is disregarded as a whole. The sample in
the research is based on Sabrie’s facebook contacts as of 1st of May 2009. A message requesting users to

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answer the research questions were disbursed to a sample of 529 contacts in which 73 respondents
replied as of 19th May 2009. The answers were compiled in a 3-week period.

5.4 Analysis Design

Analysis is done by interpreting (value judgement) the pie chart selection of respondents in each
question.

5.5 Limitations
The research is done entirely on value judgement hence errors may exist in terms of scientific
questionnaire construction practices. Multiple choices constructed do not take into account bias
response or unavailability answers according to respondent’s preference.

6.0 RESEARCH RESULTS

6.1 What are the characteristics of Malaysian youth which require entrepreneurial information?

Gender

Male 44 60%

Female 29 40%

Age Group

Less than or equal to 19 1 1%

20-29 70 96%

30-40 2 3%

More than 40 0 0%

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Current Income

Less than or equal to

52 71%
RM1,500

RM1,501-RM3,000 16 22%

RM3,001-RM5,000 4 5%

More than RM5,000 1 1%

Area of Academic Study

Business-Related Only (Finance,

Accounting, Business, 29 40%
Management)

Non Business-Related Only (Other

33 45%
than the above)

Business and Non-Business Related 11 15%

Are you interested in starting up your own business currently or in the future?

Yes 41 56%

I am currently running my own

5 7%
business / company

Maybe 23 32%

No 4 5%

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Are you currently in active persuit of achieveing financial freedom?

Yes 40 55%

I am currently content with my

6 8%
financial position / income

Maybe 15 21%

No 12 16%

6.2 Which business sector would Malaysian youth likely venture into?

If you choose to start-up your own business / company, which business sector would you likely venture
into?

Retailing (Opening up a physical store selling directly to customers) 30 41%

Sales and Marketing 12 16%

Multi Level Marketing 3 4%

ICT related services 12 16%

Manufacturing 6 8%

Trading 11 15%

Services 39 53%

Home Based Business 12 16%

Internet Based Business 17 23%

Other 10 14%

Category of “Others” Listed by Respondents:

Radio/TV Station
Restaurant or Café
Consulting
Food and Beverages
Aviation / Airlines

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6.3 What is the specific business information needed by Malaysian youths to start a business?

In your opinion, do the books and printed materials in Malaysian bookstores provide you complete
information to venture into the business you mentioned above?

I can easily find relevant books

37 51%
for my business / company

Somewhat complete 25 34%

No 11 15%

If you answered "Somewhat complete" or "No" in the question above, what information do you require
to ensure your current / future business operates successfully?

Please refer to Appendix 1

6.4 Are the information on government assistance and debt financing easily found by Malaysian
youth?

In your opinion, do the Malaysian govenment agencies provide business-related information for you to
start your business / company?

It's easily available and

6 8%
accessible

Somewhat yes 27 37%

Maybe 30 41%

I can't seem to find it! 10 14%

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Are you aware of the funding opportunities, grants and incentives offered to Malaysian entrepreneurs
by SMIDEC (Small Medium Industries Development Corporation)?

Yes 51 70%

Never heard of it 22 30%

Are you familiar with the procedures provided by Malaysian banks or financial institutions to secure
loans for your business / company?

I am completely familiar with it 2 3%

I am somewhat familiar with it 26 36%

I have never approached any

45 62%
bank for any business loan

Are you familiar with business licenses required by the Malaysian government to operate your desired /
current business?

Yes 19 26%

Somewhat yes 28 38%

No 26 36%

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6.5 What networking platform would help facilitate entrepreneurial creation among Malaysian
youths?

Are you currently a member of any business clubs or organizations?

Yes 18 25%

No 55 75%

In your opinion, is there a need for a facebook-like platform created specifically for entrepreneurs to
network and exchange ideas with each other to grow their / your business further?

Yes of course! 41 56%

Value added but not

30 41%
neccessary

No 2 3%

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6.5 How much would Malaysian youths be willing to pay for a business-related printed material?

Based on your opinion, should there be printed materials that provide complete information which
focus directly on your business venture, methods to obtain funding, operation techniques and provide
business networking opportunities in a Malaysian business environment, how much should it cost?

Less than RM100 39 53%

RM100-RM200 25 34%

RM200-RM300 4 5%

More than RM300 5 7%

Based on the question above, in which language do you prefer to read the printed materials?

Bahasa Melayu 3 4%

English 27 37%

Both 43 59%

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7.0 RESEARCH ANALYSIS

7.1 What are the characteristics of Malaysian youths which require entrepreneurial information?

a. Demographic Variables

1. Not a member of any business organizations. This is apparent from the survey where 75% are
not members in business organizations. However, this should not be the main determinant of
target market as passion in entrepreneurship is the main criteria.
2. Income of all levels. This is shown when they agree on a price set in the question.
3. Early age group below 29. Respondents with age above 29 tend to demand for “entrepreneur
experience” exposure before starting a business rather than reading books on business.
4. Youths with business related or non-business related education. Based from the survey most
youth has the interest in creating a business.

b. Pursuit of Financial Freedom and Entrepreneurial Ambitions

From the 529 samples, there were 76 respondents up to date which translates the entrepreneurship
passion to 17.2%. Hard data shows that 56% respondents are interested in setting up their business in
the future. As a whole, less than 5% are uninterested. Less than 16% are not interested in achieving
financial freedom while 55% are searching for financial freedom.

It can be summarized urge for financial freedom and dream of being an entrepreneur is the factor of a
youth which needs entrepreneurial information.

7.2 Which business sector would Malaysian youth likely venture into?

The top industry selected is services industry with 53% followed by retailing at 41%, internet based
business at 23% and fourth with 16%, home based business, ICT related services and sales and
marketing.

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Information regarding entrepreneurial opportunities in these industries should be given extra attention
by companies and organizations.

7.3 What is the specific business information needed by Malaysian youths to start a business?

a. Specific business-related contents

Referring to Appendix 1, the following contents should be created for Malaysian youths;
Step by step guide on starting and running the business
1. Legal procedures involved in the business
2. Funding, grants and financing opportunities
3. Networking strategies for startups
4. Technical aspects (how to apply loan?)
5. Successful entrepreneur experiences
6. Financial planning – how to start with low capital
7. Training and skills
8. Documentation and application guidelines
9. Entrepreneur attachment programme before starting own business
10. Consumer analysis – industry demand indicator
11. Service management – how to ensure customers depend on the product provided
12. SME financial strategy, networking & software system
13. Mentor programme – to guide entrepreneurs on doing business
14. Survey and planning tools
15. Up to date materials according to the Malaysian business environment
16. Information to enhance entrepreneurial skills

b. Preferred language for Entrepreneurial materials

The respondents prefer to read the printed materials in both languages which scored 59%, while
English scored 37% and lastly Malay language scored 4%.

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Companies and organizations should create entrepreneurial related printed materials in both languages
to increase audience exposure.

7.4 Are the information on government assistance and debt financing easily found by Malaysian
youth?

92% Malaysian youths on aggregate agreed that they could not find information on government
assistance to help them finance their business. 62% have never approached a bank to apply for a
business loan.

Strategic partnerships could be formed to match youth entrepreneurs with those that have experience in
applying business loan and government assistance.

7.5 What networking platform would help facilitate entrepreneurial creation among Malaysian
youths?

From the survey, 56% agreed a facebook-style networking platform would help networking efforts
while another 41% viewed it is value added but not necessary.

Hence it can be concluded 97% of readers would value facebook-style platform as a networking tool.

7.6 How much would Malaysian youths be willing to pay for a business-related printed material?

53% of the respondents priced a printed material should be less than RM100 while another 47% above
RM100.

Companies and organizations should always price their printed materials below RM100.

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7.7 What are the information gap which can be translated for business opportunity?

Based from the survey, an aggregate of 92% agreed that Malaysian government agencies do not provide
enough information for startups. Thus there is a gap in providing information on business related
issues from government agencies.

Technical issues like getting loans from banks or financial institutions are also one of the opportunities.
98% are not familiar with the procedures involved in getting bank loan for business.

However, 70% has heard of SMIDEC grants but the possibility is to provide methods to apply for grants
and loans from SMIDEC as the opportunity.

8.0 CONCLUSION

The research shows that there is a demand by Malaysian youth on specific business-related issues which
would benefit their entrepreneurial endeavours. These information gaps could be minimized through
creating entrepreneurial information which is needed by Malaysian youth by companies and
organizations. It is recommended that the research questions be explored in depth through scientific
methods to ensure accuracy and reliability.

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APPENDIX 1

I want to know about how to get pioneer status!

Step by step on how to start a business in Malaysia.. Any legal procedures that we as budding
entrepreneurs need to follow.. Any kind of help (especially in terms of financially) that are
provided/available to entrepreneurs.. etc...

There aren't exactly many books that go beyond the sales, retailing and marketing sectors.
I'm not too sure how much of truth is extended into this, TV/radio stations are all about who you know
more than what you know. Most of them are already established and/or are part of a conglomerate. eg.
Fly FM was started up by Flyguy himself, who already had exp and contacts. All he needed was funding,
location, and support by a conglomerate company to start Fly FM.

from friend who had more experinces and from the internet.

Not sure. Haven't had the chance to do book reading. I find most information on the Google. Concise
and fast.

Practical information are not very accessible, even if there are books it is not specific enough and
handles tehcnicalitites like a applying for loan and etc, but less on strategies,

The how's and the what's ...and of course the 5 why's detailing the information of the business i seek

More successful entrepreneurs share their experience and obstacles in entrepreneurial.

Step by step to do business the right way & how to prevent using big capital to start up a business

Additional information on bio related businesses are fairly new but can be
obtained on the net. Complete information pertaining to sources of funds,
grants and loans however, are hard to find.

Don't actually know.. haven't checked it out....

Training and skills.

The step by step documentation and application of guidelines processes.

Indulging in the industry as to gain basic experience before setting up own business.
Seminars and discussions with experienced service providers.
Observations on the operation of other service providers.

Actually i do not have time and idea to think about my future business.

The chart that show the people trend towards each industry in malaysia and even the world.
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How clients can rely on our services provided

-SME's financial stretegy

-SME's networking system
-SME's software system

Family and close friends' advice.

no more time

there is no one complete book on the whole matter. some may focus on marketing, while others on
legal, sales, management. If you want find a book like teaching you doing the business, i don't think it is
going to work. you may need a mentor or someone to guide you in doing business. i dont believe in DIY
on business. you may have DIY in financial planning but not in business.

survey and planning

Some of the material are not up to date!

financial info and any activity that can enhance my skill in future intreprenure

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