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

SME (Small Medium-sized Enterprises) assumed an important role in Malaysian economy. They constitute some 99.2 % of all enterprises, employ 65% of the workforce and contribute almost 50% of Gross Domestic Product (GDP) or value added and approximately 20% of total exports. A total of 157 Bumiputera and 72 Non-Bumiputera SMEs were successfully interviewed. The results of this study reveal that the increase in market share is the same for both Bumiputera and Non-Bumiputera entrepreneurs. In term of sales and productivity, Non-Bumiputera entrepreneurs performed better than Bumiputera entrepreneurs for the past three years. However, Bumiputera entrepreneurs perceived that their companies earned a higher profits than the Non-Bumiputera companies. This might be due to the level of satisfaction among both ethnics where Bumiputera are much easier to satisfy although their profit is lower.