Bumiputra entrepreneurship : a study of MARA loanees in the Malaysian state of Kelantan : a thesis presented in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Business Studies at Massey University, New Zealand

Abstract

The study was concerned with bumiputra entrepreneurship in Malaysia. Primarily, the purpose was to provide understanding concerning the development of an indigenous bumiputra (i.e. Malays as well as other indigenous groups in Malaysia) entrepreneurship, as well as to narrow the knowledge gap between government agencies and similar institutions, in Malaysia, set up to promote bumiputra entrepreneurship, and those they are supposed to serve. Data concerning bumiputra entrepreneurs were obtained through the author's personal interviews with 92 MARA loanees in eight town council districts in the Malaysian state of Kelantan, and 44 bumiputra officials in the Malaysian States of Kelantan and Selangor, and the Capital Territory of Kuala Lumpur. The data for this thesis have been collected almost twelve years after the Malaysian government intensified its efforts to promote bumiputra participation in business and industry through the New Economic Policy, (this was launched in 1971 following the racial riots in 1969). However, the findings presented, according to the bumiputra personal and business profile, business practice and growth profile, business-problem profile, and training-need profile show that much has yet to be done to assist the bumiputra. The results indicate two important features. Firstly, there were inadequacies in the education and experience of the bumiputra entrepreneurs which were compounded by the fact that the businesses were young, small, poorly organized and without adequate business records. Secondly, the bumiputra entrepreneurs were found to be operating in a relatively hostile environment, receiving little support from either the public or private sectors of the economy. In view of these problems some recommendations were made to develop bumiputra entrepreneurship. They included measures which cover immediate and long term needs, as well as the creation of support services as an ongoing process. Further research, however, is necessary to obtain more information regarding the bumiputras in business and industry.