The Entrepreneurs Environment Nexus: Understanding the Entrepreneurial Training,
Skills and Networking for Youths’ Business Sustainability
Halimah Abdul Manaf1*, Siti Noor Shamilah Misnan2, Muslimin Wallang3, Noor Faizzah Dollah4
*1,2,3,4School of Government, College of Law, Government and International Studies,
Universiti Utara Malaysia, Malaysia imah@uum.edu.my*1
Article History: Received: 10 November 2020; Revised: 12 January 2021; Accepted: 27 January 2021; Published online: 05 April 2021
Abstract: The personality of a youth is an important factor in determining business continuity. However, facing the business competition in the era of industrial revolution 4.0 (IR4.0) required environmental support factors beyond personality of youth entrepreneurs. Based on that framework, this study claims that training, skills and support network from the government-sponsored entrepreneurship program is critical factor in ensuring business sustainability among Malaysian youth entrepreneurs. The quantitative research design was conducted involved 150 youth entrepreneurs. This study shows that government initiatives comprise of training, skills and support of business networks have influenced business continuity among youth entrepreneurs to stay relevant.The research was funded by Universiti Utara Malaysia, Malaysia research grant (SO Code: 13923).
Keywords:Business continuity, questionnaire, training, skills, network support, youth, Malaysia
1. Introduction
Government strategy around the globe in ensuring the country's economic prosperity is focus on youth entrepreneurship development. The involvement of youth in entrepreneurship is seen as to have many advantages especially in addressing the problems of unemployment, poverty and promoting the country's economic growth (Ogamba, 2019). According to ILO (2017) for the year 2017 and 2018 indicates the positive growth in economic development around the world. Despite the positive growth in economic, however employment market offer are limited and it affects unemployment among the youth. For the year 2017, the unemployment rate in youth grew slightly reaching 13.1 per cent compared to year 2009. This shows that the unemployment rate among youth is trifold compared to the unemployment rate in adults. In addition, at international level was also focus on reduction in the unemployment rate among the youths as became one of the sustainable development agenda 2030 (SDG 2030). SDG 2030 makes targets under the goal of 8 by encouraging sustainable economic growth and offering a productive job to qualify.
Understanding the need to encourage entrepreneurial development among youth, most countries adopt a youth-driven approach to skills and entrepreneurship. Various strategic plans and entrepreneurial programs are being developed to ensure that youths are involved in driving the country's economic development (Sandirasegarane, Sutermaster, Gill, Volz, & Mehta, 2016; Ceptureanu, 2015; Bergmann& Sternberg, 2007).
Entrepreneurial professionals are able to develop their human resources according to their ability in terms of creativity, innovation, passion, and competitiveness (UNDP, 2014). This ability of youth should always be given attention in the national development framework. This is necessary given the challenges of today's business world which offers open market advantages and threats to the business world especially among young entrepreneurs.
Today's business world is heavily influenced by the changing climate of global competition and push for capitalism. The competition climate in the fourth industrial revolution (IR 4.0) creates a fierce market competition with the use of technology and internet. IR 4.0 enables goods and services to be sold and accepted at competitive prices, timeless, offers certain advantages, is competitive in different national climate conditions and is of guaranteed quality (Thomas & Nicholas, 2019). To meet the competitive nature of open business risks young entrepreneurs who are new to the business. It exposes businesses to the risks of open competition in local and international markets. Therefore, this study claims that training and business networking elements should be provided to young entrepreneurs in order for their business to remain competitive in the open market. Ongoing training not only create awareness, but encourages the competitive personality, have planning skills, entrepreneurship management, and even have fresh insights and can leverage the Internet and mass media for local and international business cooperation.
of the government-sponsored program through the skills of entrepreneurs. The government provides not only financial assistance, but the programs organised by the government includes provision of undergraduate classes, programs to polish entrepreneur skills. Therefore, the results of this study reveal the level of satisfaction of participants in the government entrepreneurship program with training, skills and support of business networks that assist business continuity. This study also plays an important role in the development of policy to evaluate and improve government-sponsored training and mentoring programs.
In addition, this study contributes to the knowledge of the readers especially those who are not involved in entrepreneurship development programs to know the impact of implementing such programs. As for program participants, this study gives opportunities in development of new ideas on how to improve the business in the future. Further, the study also will provide information for youth entrepreneurs to remain sustainable in the long run and capable to continue to face challenges in an effort to improve the economy and individual lives.
2. Background of Study
Most third world countries have adopted human resource development strategies through youth entrepreneurship development (Minola, Criaco, & Cassia, 2014). The strategy of developing youth entrepreneurship programs is also used by the Malaysian government to strengthen the economy of the people. This approach has been used since the government introduced the New Economic Policy (NEP) in 1970. The NEP is one of the government's strategies to encourage citizen involvement in entrepreneurship. This government strategy is furthered in the Ninth Malaysia Plan (RMK-9), with particular attention to the involvement of youth in the business (RMK-9, 2010). In the agenda of youth entrepreneurship development, the government has encouraged the participation of the people in trade and industry through cooperation with private companies and the concept of secession (RMK-9, 2010).
Subsequently, the government has launched the National Entrepreneurship Policy 2030 (DasarKeusahawananNasional 2030, 2019). The first thrust of this strategy is to cultivate entrepreneurship in all walks of life. This focus is on the youth as a potential group to help the country in the long run. Youth need to apply for help from government agencies. The assistance offered by government agencies to youth is an early boost for youth to start a business or supplement their capital temporarily to enable youth to move further in their business.
The government's initiative in empowering youth is continued by introducing various youth entrepreneurship programs such as the introduction of the Graduate Entrepreneurship Fund, Youth Entrepreneurship Program (National SME Development Council, 2013), the ‘TabungEkonomi Kumpulan UsahawanNiaga’ (TEKUN), the ‘Skim UsahawanPermulaanBumiputra’ (SUPERB), the ‘Program Tunas UsahawanBeliaBumiputra’ (TUBE), the ‘1 AZAM’ program which includes ‘AzamKerja’, ‘AzamKhidmat’, ‘AzamTani’ dan ‘AzamNiaga’, MARA Entrepreneurship Training Program and programs organised by the Ministry of Entrepreneur and Cooperative Development Malaysia (MECD) between 2004-2009, the RISDA Entrepreneur Program and the 1MalaysiaBiz.my program (1MB). Implementation of various entrepreneurship programs shows that the government has given serious attention to the development of youth entrepreneurship in Malaysia.
Although there are many entrepreneurial development programs organised by the government today, the need to be evaluated and improved to ensure that the programs run are beneficial and helps the youth business. Ongoing evaluations should be conducted to avoid wasting resources, energy, finances, equipment and training provided by government agencies to entrepreneurs. According to Firdaus et al. (2009), Zainol, Al Mamun, Hassan, and Muniady, (2017) the key issues in the implementation of entrepreneurship programs in Malaysia are the use of limited technology and working capital, lack of creativity and innovation that can be used in business development. Therefore, ongoing research needs to be conduct in the entrepreneurship program in Malaysia to enable the discovery and improvement strategies to be identified in ensuring the sustainability of young entrepreneurs (Samah, Omar, Bolong, &Salleh Hassan, 2018).
Challenges facing by entrepreneurs today, especially small and medium-sized businesses related to capital and the ability to manage large-scale businesses. In the RMK-9, the government has organised seminars and courses to provide insight and skills in financial management as well as motivation to increase business confidence and morale (RMK-9, 2010). Previous studies have shown that financial aid factors, business planning, educational background, motivation, duration of program participation, income amount and geographical factors influences the quality of life of the micro-loan scheme (Terano, Mohamed &Jusri, 2015; Koe, Sa’ari, Majid, & Ismail, 2012).
The challenge often faced by young entrepreneurs is to start a business and ensure business continuity within the times (Koe, Sa’ari, Majid, & Ismail, 2012). The challenge of starting a business requires entrepreneurs to be active, confident and prepared to face risks. In addition to the challenge of starting a business, young entrepreneurs also need to be creative in ensuring their business is sustainable (Rikinorhakis et al., 2017). The question is ontraining, entrepreneurial skills, business support network and business continuity among youth entrepreneurs able to sustain the youth entrepreneurs in the long term.
3. Literature Review Entrepreneurship training
Entrepreneurs need to play a role in many aspects and functions to manage their business. In order for the business to succeed, entrepreneurs need to identify opportunities and turn them into strengths to success. Therefore, entrepreneurs need to analyse and think outside of the box, be creative, visionary, have the ability to gather and manage resources according to their goals, be able to make decisions, negotiate and act quickly while solving internal and external business issues (McKenzie, & Woodruff, 2014; Chiaburu, &Marinova, 2005).
The action taken by the entrepreneur is based on their thinking plan. The success of an entrepreneur is seen in the progress of related businesses, companies, employees and stakeholders. The guidance provided in the field of entrepreneurship helps to identify one's potential as an entrepreneur, leader, develop talent, interests and ability to do business in various fields.
Basic entrepreneurial training assists entrepreneurs to be self-sufficient and thrive in business. Training involve several aspects such as creative ability, decision-making based on analysis of the micro and macro business environment, consulting skills, management in all aspects of the business to achieve a defined mission (Blume, Ford, Baldwin, & Huang, 2010; Mensmann&Frese, 2019). Disclosures in training provide knowledge and guidance to entrepreneurs to take action and alternative options that are available in business management.
Entrepreneurial skills
Empowerment and personal development gives individual an advantage, especially for an entrepreneur. These skills help entrepreneurs be resilient and able to proactively carry out their tasks. Skills related to work management and mastery of technical knowledge, including financial and audit matters, marketing, tenders and provides the entrepreneurs withvarious advantages in managing their business (Pickernell, Packham, Jones, Miller, &Brychan, 2011). The skills and knowledge gained in managing business, customers, markets, employees, partners and stakeholders empower individuals to succeed in business.
In addition, training on positive thinking skills and learning trains entrepreneurial thinking. This training helps entrepreneurs learn to concentrate, analyse and generate logic in their thinking. While thinking that comes from positive learning enables entrepreneurs to learn to be firm, affirmative and balanced in thinking at all times. Positive learning also enables entrepreneurs to learn to create a calm and active mind, the ability to manage stress and work under pressure enables them to continue their business (Saberi&Hamdan, 2019).
Business management training followed by entrepreneurs also develops leadership skills. Entrepreneurs are able to develop leadership skills, increase self value build a positive image and boost their self-esteem. Entrepreneurial personal development is closely linked to self-discipline, time management and interest in getting fully involved in the business. All business management skills can be learned and practiced over a period of time.
A good entrepreneur is passionate, motivating and encouraging others to succeed in their respective careers. Among the successful entrepreneurial traits are good listening skills, patience, wisdom, emotional intelligence, respect for others and creating win-win opportunities in life and work (Blume, Ford, Baldwin, & Huang, 2010).
A successful entrepreneur is able to think on a large scale for themselves, their team and take the entire organisation to reach heights and realise their potential. In order to develop as a visionary entrepreneur, training encourages entrepreneurs hone their skills, develop additional skills and make their business opportunities and capital gains.
4. Networking business
Successful entrepreneurial traits have specific criteria such as visionary, identifying opportunities, offering solutions in the form of products, services, technologies or processes using all the resources needed. The business resources required includes workforce, finance, technology, infrastructure and business networks that help grow the business (Guo, Zhao, & Tang, 2013).
In addition, business continuity requires entrepreneurs to be determined, capable of taking risks and being accountable. To help the entrepreneurs, the business network elements provides with the ability to source for solutions and overcome obstacles to achieving the ultimate goals. Business networks create job opportunities, in return help entrepreneurs grow to their potential, contribute to society and simultaneously ensure business growth to the betterment of people's lives (Anwar, & Ali Shah, 2020). Strong business relationships help entrepreneurs to gain bigger business opportunities and to render help to others. For example, in the early days, young entrepreneurs who are developing their business finds it difficult to gain the trust of financial institutes, customers or government agencies for promotion and other aspects to venture further into the business. However, the business network bridges the business operation gap with other facilities and increases business opportunities (Zane&DeCarolis, 2016).
Youth Entrepreneurship
Youth are categorised as group of between adolescents and adults. These groups are often given special attention by the government in the development of human capital, education, finance, infrastructure, technology, sports and other aspects. The importance of the youth is seen as a leading group of workers and a source of labor to the country. Youth involvement in entrepreneurship is not confined to any specific types of businesses. According to Moroney and Thompson (2013), entrepreneurial youth involvement spans across areas including technology, food, tourism, cosmetic, construction and others to generate income. Youth involvement in entrepreneurship are categorised as social entrepreneurs, intrepreneurship, collaboration entrepreneurs or public entrepreneurs. Meanwhile, the existence of internet based IR4.0 and mass media has given youth the opportunities to use technology to offer e-commerce digital goods and services to the local and international community.
Most countries have their own definition of youth category. For example, in Malaysia, according to the National Youth Policy of Malaysia, refers youth groups to individuals between the ages of 15 and 40. Meanwhile, in South Africa the National Youth Act stipulates that youths are individuals within the ages of 14 to 34 (KojoOseifuah, 2010). The country is targeting this group of entrepreneurs in accordance with their physical, mental and abilities to take risks in businesses.
According to Sindambiwe and Mbabazi (2014) youth group are young people involved in entrepreneurship activities aimed at solving the problem of unemployment. Youth groups are group of energised people that continues to be empowered by the government to ensure that the development of the country can be developed according to the outlined vision. Lack of youth involvement in supporting economic, political and social development can interfere with national administration and security.
5. Methodology
This study is a quantitative design that use questionnaire for data collection. The study population comprised of young entrepreneurs participating in government-sponsored entrepreneurship development programs.
Meanwhile, the study sample involved participants in the entrepreneurship program organised by the government. The sample of this study consisted of 150 participants from 5 main entrepreneurship program organised by government agencies.
The entrepreneurship programs that are used in the present study are from; (i) ‘TekunNasional’ (TEKUN), (ii) ‘Skim PermulaanUsahawanBumiputera’ (SUPERB), (iii) ‘Syarikat BumiputeraBerprestasiTinggi’ Program (TERAS) (iv) AmanahIkhtiar Malaysia (AIM) and (v) ‘Prosper UsahawanMuda’ (PROSPER). The selection of respondents consists of entrepreneurs who are directly involved in the entrepreneur development program. Purposive random sampling was used by the target group method based on the list and names of participants of the identified entrepreneurship program. The participants selected for this study were youth aged 15-34 years as suggested by Chigunta (2002) and Oseifuah, (2010).
The results of this study used descriptive analysis to obtain data on the frequency and percentage of demographics and business profiles of youth entrepreneurs involved. The data were analysed using SPSS version 19.0 software.
6. Findings and Discussion Profile of youth entrepreneur
Table1.Descriptivestatisticsofrespondents
Demographic Numbers (n=150) Percentage (%)
Gender Male 87 58.0 Female 63 42.0 Age 18-20 years old 4 2.7 21-30 years old 63 42 31-40 years old 83 55 Education SPMMKS / 2 1.3 STPM 35 23.3 Skills Certificate 56 37.3 Diploma 24 16 Bachelor Degree 33 22 Race Malay 137 91.3 Others Bumiputera 13 8.7 Duration of Business
Less than 3 years 4 2.7
4 to 10 years 122 81.3
More than 10 years 24 16
Enterpreneurship Programmes Amanah Ikhtiar Malaysia (AIM)
43 28.7
Tekun Nasional (TEKUN)
39 26 Skim Permulaan Usahawan Bumiputera (SUPERB) 32 21.3 Program Syarikat Bumiputera Berprestasi Tinggi (TERAS) 23 15.3
Prosper Usahawan Muda (PROSPER)
13 8.6
Frequency of participation in entrepreneurship program
1 time 1 0.7
3 times 68 45.3
4 times 54 36
5 times and above 3 2
The duration of time you entered the entrepreneurship program
1 to 3 years 14 9.3
4 to 6 years 79 52.7
7 to 9 years 54 36
More than 10 years 3 2.0
Type of Business Agriculture 2 1.3 Finance 36 24 Construction 47 31.3 Education 43 28.7 Manufacturing 18 12 Tourism 4 2
Table 1 shows that the majority of respondents comprise of entrepreneurs aged between 31-40 years which consists of 83 entrepreneurs or 55.3%. This was followed by the respondent’s age between 21-30 years and 42.0% or 63 entrepreneurs and entrepreneurs between 18-20 years of age whichare 4entrepreneurs.
In the education category, the majority of respondents had a Skills Certificate of 56 entrepreneurs or equivalent to 37.3%. In addition, there were 35 entrepreneurs with education level at the Higher Education Certificate of Education (STPM) and a bachelor’s degree holder of 33 entrepreneurs or 22%. Meanwhile, entrepreneurs who are diploma holders are 24 or 16.0%.
Profile of respondents also showed that the majority of entrepreneurs in this study, namely the Malays were 137 (91.3%). The rest are from other ethnic groups such as the bumiputera who make up only 8.7 percent or 13 entrepreneurs.
For the duration of the business, the youth entrepreneurs involved in this study indicated 122 entrepreneurs (81.3%) had been in the business between 4-10. It is followed by 24 or 16 percent of entrepreneurs who have been in business for over 10 years. The rest were respondents with less than 3 years of business experience.
Entrepreneurship programs among the respondents indicated that the AmanahIkhtiar Malaysia (AIM) program was the preferred choice of respondents with a total of 43 or 28.7 percent. It is likely that AIM is the longest-running and most successful micro-credit pilot project introduced by the government to provide people with a business opportunity (Zaini,
Rindam&Supian, 2012). This was followed by the ‘TekunNasional’ (TEKUN) program and the ‘Skim PermulaanUsahawanBumiputera’ (SUPERB) with 39 and 32 entrepreneurs respectively. Meanwhile, the ‘Syarikat BumiputeraBerprestasiTinggi Program’ (TERAS) represents 23 youths or 15.3 percent youth entrepreneurs and the rest is for the 13entrepreneurswere from‘Prosper UsahawanMuda’ (PROSPER) program.
Table 1 also shows the frequency of respondents to government-sponsored entrepreneurship programs. The majority of respondents had attended the entrepreneurship program is 3 times with 68 (45.3%) followed by 54 entrepreneurs (36%) who had attended the program 4 times. Only 3 entrepreneurs have participated in entrepreneurship program more than 5 and only one entrepreneurshas participated once.
In the category of business type entered by youth entrepreneurs show that the majority choose to be involved in the construction and education industry involving the largest number of respondents, 47 and 43 respectively. The business category related to finance is second 36 entrepreneurs or 24 percent. Meanwhile, the field of
employment recorded the involvement of only 18 entrepreneurs (12%) and in the field of agriculture and tourism with only 2.7 and 1.43 percent of the respondents.
Training and guidance
The results of this study are based on the analysis made based on the feedback provided by the respondents. For this purpose, all respondents were required to answer questions that were asked on a likert scale which consists of strongly agreed, agreed, not sure, disagree and strongly disagree. Therefore, each of the variables involved will be represented by mean values and standard deviations to indicate the level of agreement among respondents.
Table 2. Mean and standard deviation analysis for training and guidance
No Item Mean Standard
Deviation C1 The training provided meets the objectives of the entrepreneurship program. 4.26 .545 C2 The training provided helps young people interested in starting a business 4.08 .607 C3 Trainers who conduct training have in-depth knowledge 4.01 .492 C4 I have gained a deep understanding of the results of the program coach's
description.
4.35 .468
C5 Training content can enhance my entrepreneurial knowledge 4.10 .476 C6 This entrepreneurial training program has made me eager to do business now. 4.17 .514 C7 This entrepreneurial training program has made me eager to do business now. 4.22 .521
Table 2 shows the mean and standard deviation of the training. The fourth question shows that the mean average is at the highest level (4.35) indicated that entrepreneurs feel they understand the results of the coach's explanation for each of the exercises that are given. This is also related to the first question which shows the second highest mean (4.26), which states that entrepreneurs believe that the objectives of the entrepreneurial program followed can be achieved successfully. This situation clearly indicates that entrepreneurs will not decline and strongly agree to attend more training programs organised in the future. As mentioned by McKenzie and Woodruff, (2014) that entrepreneurial training programs can increase business productivity around the world. Effective entrepreneurial training provides a number of key effects such as assisting potential traders to quickly launch new businesses, increase sales and existing business profits.
Table 3. Mean and standard deviation of entrepreneurial skills
No Item Mean Standard
Deviation D1 This program has enhanced my business management skills. 4.30 .554 D2 This program has improved my marketing skills. 4.02 .542 D3 This program has enhanced my financial management skills. 4.23 .483 D4 This program has enhanced my innovation skills. 4.19 .572
D5 This program has enhanced my creativity. 4.15 .523
D6 This program has improved my communication skills. 4.00 .635 D7 This program has enhanced my risk management skills. 4.05 .588
Table 3 shows the mean and standard deviation of entrepreneurial skills among youth entrepreneurs. Most respondents believe that the government-sponsored entrepreneurship program has succeeded in improving entrepreneurship skills among entrepreneurs. This can be shown by item one with the highest mean value (4.30). Likewise, the second highest mean value indicates the relationship between entrepreneurship skills and financial management skills (4.23). The majority of respondents stated that the program helped them to increase their knowledge and thus improve their financial management skills. The lowest mean value of this variable was
business, marketing and financial management elements, government-designed entrepreneurship programs should also emphasise communication skills. This is important because a one-way relationship will make it difficult for businesses to thrive and compete in the future.
The study is supported by Terano, Mohamed, and Jusri, (2015) found that most of entrepreneurs have a positive response to training programmes that an enhance skills and knowledge in managing business and interacting with relevant parties
Table 4.Mean analysis and standard deviation of the business support network
No Item Mean Standard
Deviation F1 I often contact government support agencies. (e.g: SME Bank,
MATRADE, FAMA etc.)
4.23 .549
F2 My main source of financial lending is government financial agencies
4.14 .544
F3 My main source of financial lending is private finance agencies. 4.05 .643 F4 I have a relationship with a financial institution 4.07 .652 F5 I have network resources that allow me to interact with others. (e.g:
partner)
4.10 .488
F6 I was able to work with a good support agency. 4.11 .670 F7 My company is often involved in activities organised by new
business network support agencies.
4.01 .684
F8 I have close contacts with successful entrepreneurs. 4.18 .434
Table 4 shows the mean and standard deviation of the business support network. The majority of entrepreneurs indicate that they are in constant contact with government agencies such as MATRADE, FAMA, SME Bank and others (4.23). With this support network, entrepreneurs are confident that they are not moving on their own and are always motivated to move forward. Therefore, it is not surprising that the entrepreneurs involved in this study have close contacts who have been successful in their business (4.18). The lowest mean value was for items assessing the frequency of entrepreneurs engaged in activities organised by support agencies (4.01). Although employers are known to have close relationships with support agencies, the time and cost constraints have limited their involvement in any related activities.
This close relationship should be built at early stage in business. The relationship was important as 50% of new businesses failed at the early stages of business around the globe due to debt, lack of resources and small business size. One of the ways to overcome this problem is to develop good relationship with external agencies that can help exchange resources and knowledge. Therefore, the strong networking with financial, business, political agencies able helps business more competitive and innovative (Anwar & Ali Shah, 2020).
7. Conclusion
A business environment that supports an entrepreneur to take action in growing a business is important and vital in ensuring its business sustainability. This is reflected in the perception given by the youth entrepreneurs involved in the study that the training, guidance, entrepreneurial skills and support of the business network are key to their business continuity. Involvement of youth entrepreneurs in entrepreneurship programs organised by government agencies can expose youth to business management, especially among youth who find that the training sessions provided achieve the objectives of the entrepreneurship program. The insights gained from the training and training modules provided by the trainer enable entrepreneurs to gain comprehensive business management techniques. The training and guidance provided in entrepreneurship programs also help youth develop more systematic business management and financial management skills. The development of these skills is a result of the guidance and knowledge gained through the program as well as through relationships with other business networks such as financial and private lending and investment agencies. Business relationships include financial agencies, business partners, marketing institutions, branding, real estate and local and international business intermediaries. The results of this study suggest that future studies may also focus on the business development and business risk management module among youth entrepreneurs.
8. Acknowledgement
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