CHAPTER 4 ii
ENTREPRENEURIAL SOURCES &
SUPPORT SYSTEM
Source Of Capital
Capital refers to any form wealth employed to produce
more wealth for a firm.
•Personal Funds/personal savings
•Family and friends
•Retirement account, pension fund, EPF
•Banks and other financial institutions – Long term
financing, Medium term financing, Short term financing
•Government loan – SME Corp, MTDC, PNB, MIDA, SME
Bank, MARA
•Stock market
BUSINESS SUPPORT SYSTEMS
• facilities provided by government agencies and private to help
implement and develop the enterprise
• There are seven forms of entrepreneurship support facilities
that will be discussed in this module is :
1. Financial
2. Management Training and Entrepreneurship
3. Technology
4. Location and business space
5. Marketing
6. Research and Project Identify
7. Information
1. Financial
• provided by financial institutions, commercial banks,
merchant banks and government agencies concerned.
• aims to provide loans to entrepreneurs to implement a
business
• construction of the factory site, the purchase of office
equipment, purchase of machinery and also for use as
working capital.
Financial facilities provided by banks and
agencies in Malaysia
Agency Financial facility
Majlis Amanah Rakyat (MARA) Provides assistance in the form of
loans and equipment to SME
entrepreneurs.
Commercial banks Provided loans that are allocated by
the Bank Negara Malaysia to be
distributed to qualified applicants.
Bank Pembangunan dan Gives financial credit to industrial
Infrastruktur Malaysia Berhad businesses.
(BPIMB)
Malaysian Industrial Development Provides fixed asset financing to
Finance Berhad (MIDF) manufacturers in Malaysia.
Bank Pertanian Malaysia (BPM) Gives financial assistance and
equipment to agriculture-related
industries.
2. Entrepreneur and Management
Training
• The program aims to train entrepreneurs to
obtain skills in the relevant field and knowledge
in the area of management.
• The program also provides encouragement and
support to enhance the entrepreneurs.
Training Management and
Entrepreneurship
Agency Entrepreneur and management training
Majlis Amanah Rakyat (MARA) Provides training and guidance to SME
entrepreneurs so that they are highly
skilled in their area of interest.
Malaysian Entrepreneurship Plans and implements entrepreneurship
Development Centre (MEDEC) development programs such as training,
education, research and consultancy
National Productivity Corporation Provides training in enhancing quality and
(NPC) productivity, consultation services and
guidance in Total Quality Management
(TQM)
State Economic Development Its general aim is to provide and promote
Corporation (SEDC) commercial, industrial and socio-economic
development in the states.
3. Technology Support
• An Entrepreneurs can increase their technical knowledge by
attending educational courses provided by several agencies in
Malaysia.
• Technical assistance is offered to exposes the entrepreneur to
the latest production methods and systematic management.
• Transfer of modern technology is very important in order to
create a culture of competitiveness in line with our economic
development
Technical assistance provided by agencies
in Malaysia
Agency Technical assistance
Palm Oil Research Industry Malaysia Develops quality product using the latest
(PORIM) technological advancement.
Forest Research Institute of Malaysia Promotes sustainable management and the
(FRIM) optimal use of forest resources by
generating knowledge and technology
through research, development and
application.
Malaysian Institute of Microelectronic Promotes innovation in information
System (MIMOS) technology. Strives to be premier applied
research centre in frontier technologies.
4. Infrastructure support
( Location and premise)
• There are agencies that provided suitable
business location which are appropriate with the
business whereby the location or premise is
equipped with all types of facilities including
utilies.
Infrastructure assistance provided by agencies in
Malaysia
Agency Infrastructure assistance
Urban Development Authority (UDA) Provides and carries out projects at
urban settlements in terms of
development, housing, commercial
and industrial issues.
Majlis Amanah Rakyat (MARA) Provides business sites to carry out
business activities.
State Economic Development Develops basic utilities and areas like
Corporation ( SEDC) pathway and recreational facilities
5.Marketing
• The Agency will provide support services to entrepreneurs in the
distribution, promotion and marketing of goods and services produced by
entrepreneurs in the country and overseas.
Agency Marketing Assistance
Federal Agricultural Marketing Markets agricultural products locally
Authority (FAMA) and abroad
Malaysian External trade Exposes the entrepreneur to
Development Corporation available business opportunities
(MATRADE)
Ministry of international Trade and In charge of affairs related to foreign
Industry (MITI) trade, high technology,
environmental protection an
industrial location, energy and other
areas.
6.Information
• Help information available to entrepreneurs in business
opportunities, statistics, new discoveries, technology,
research and so on.
• Most of the department or agency has a resource center
or library that contains the collection of information for
public use.
Informational assistance provided by agencies in
Malaysia
Agency Informational assistance
Forest Research Institute of Malaysia Provides research and development, transfer of
(FRIM) technology and testing services for the forest
and timber industry
Malaysian Industrial Development Provides information on business opportunities
Authority (MIDA) such as investment, trade, financing,
productivity pertaining to manufacturing and
service sectors and facilities companies who are
looking for joint venture partners and promotes
and coordinates the industrial development in
Malaysia.
Malaysian External Trade Development To organize training programmed to improve the
Corporation (MATRADE) international marketing skills of Malaysian
exporters
Standard and Industrial Research Ensures the quality of local products, penetrates
Institute of Malaysia (SIRIM) the market potentiality and provides information
on new discoveries in production.
7.Research and Project Recognition
• The research and analysis that will be performed include
project possibilities, marketing research and research on
technology.
• Studies conducted by government agencies help the
entrepreneur to increase efficiency, technological achievement,
production as well as produce better quality products.
Research assistance provided by agencies in Malaysia
Agency Research assistance
Malaysia Agricultural Research and Carries out research on the output of
Development Institute (MARDI) agricultural products, improves the quality
of agricultural products and produces new
seeds for farmer.
Research Rubber Institute Malaysia(RRIM) Carries out research on the quality of
rubber and produces new rubber based
products.
Malaysian Palm Oil Board (MPOB) Carries out research on product produced
from the output of palm oil, spreads over
the market of palm oil and improves the
quality of palm oil.
Standard and Industrial Research Institute Focus on discovering and developing new
of Malaysia (SIRIM Berhad) technologies to enable industries to move
up the value chain.
Questions….??????
