Long run business objectives and business performance of Bumiputera and Non-Bumiputera SMEs during the 2007-2009 economic slowdown

Authors

Zainah Abdullah, Universiti Teknologi MARA
Nor Rashidah Zainal, Universiti Teknologi MARA
Azizan Abdullah, Universiti Teknologi MARA
Charles Harvie, University of WollongongFollow

RIS ID

54372

Publication Details

Abdullah, Z., Zainal, N., Abdullah, A. & Harvie, C. (2011). Long run business objectives and business performance of Bumiputera and Non-Bumiputera SMEs during the 2007-2009 economic slowdown. 2011 IEEE Colloquium on Humanities, Science and Engineering Research (CHUSER 2011) (pp. 750-755). Piscataway: IEEE.

Abstract

SME (Small Medium-sized Enterprises) assumed animportant role in Malaysian economy. They constitute some99.2 % of all enterprises, employ 65% of the workforce andcontribute almost 50% of Gross Domestic Product (GDP) orvalue added and approximately 20% of total exports. A total of157 Bumiputera and 72 Non-Bumiputera SMEs were successfullyinterviewed. The results of this study reveal that the increase inmarket share is the same for both Bumiputera and Non-Bumiputera entrepreneurs. In term of sales and productivity,Non-Bumiputera entrepreneurs performed better thanBumiputera entrepreneurs for the past three years. However,Bumiputera entrepreneurs perceived that their companiesearned a higher profits than the Non-Bumiputera companies.This might be due to the level of satisfaction among bothethnics where Bumiputera are much easier to satisfyalthough their profit is lower.