WHY MALAY ENTREPRENEURS DID NOT USE BUSINESS SUPPORT SERVICES IN MALAYSIA?

The establishment of SMEs among Bumiputra entrepreneurs has experienced a rapid development in Malaysia. The government focuses on Malays entrepreneurship to eradicate poverty and to cope with social and economic imbalance among races. In 1970 the government launched a New Economic Policy (1970 -1990) which aimed to increase Malays ownership to 30%, yet until now the figure yet to be achieved despite various government support services provided. This study aims to investigate inherent factors that prevent SMEs from using the services. This study also assesses the non-users perception on their firms performance in absence of the government support services. Altogether 3,832 questionnaires were distributed throughout the country via mail in June 2012 together with a stamped returned envelope. 670 questionnaires were returned, 333 (49.7%) respondents were not utilised the support services. Amongst other reasons were due to complicated procedure imposed by the agencies in obtaining the facilities and did not know about the existence of the services. As far as firms performance was concerned majority of entrepreneurs satisfied with their business. In conclusion, the government and service providers should revisit their strategies to render the services conspicous amongst Malay entrepreneurs.Z