Business success factors of SMEs in Malaysia: an empirical study

• Main Authors: Mohd Thas Thaker, Mohamed Asmy, Abdullah, Moha Asri, Mohamed Zakaria, Fodol, Masifah, Atika Rukminastiti, Adhiatma, Ardian
• Format: Book Chapter
• Language: English
• Published: UMY Press 2020
• Subjects: HF3000 By region or country; HF5001 Business. Business Administration
• Online Access: http://irep.iium.edu.my/83838/1/83838_Business%20success%20factors%20of%20SMEs%20-%20C3.pdf; http://irep.iium.edu.my/83838/; https://bhp.umy.ac.id/umy-press/
• Institution: Universiti Islam Antarabangsa Malaysia

Small and Medium-sized Enterprises (SMEs) contribute significantly to the Malaysian economy, in terms of productivity (GDP), employment, and eco-nomic growth. Thus, to ensure the sustainability of SMEs, the success and growth of businesses must be studied by identifying key factors of business success. Therefore, this chapter identifies the background of SMEs in Malay-sia and provides implications of the requirements for the success and use of SMEs in various fields. Emphasis was placed on financial challenges, external challenges, accessibility to financial capital, accessibility to Islamic finance and Knowledge Skills’ Challenges. The survey was conducted using a struc-tured questionnaire that included questions about their initial, current and future use of 11 various sources of funding and access to these resources, as well as the various challenges that SMEs face. Data collected from 344 re-spondents were analyzed using descriptive and inferential statistics using the Statistical Package for the Social Sciences (SPSS). After the reliability test, five variables were adopted and the variable “Technological Improvement Chal-lenges” was deleted. The multiple regression analysis was implemented to ascertain the relationship between the variables and the degree of statistical significance. The study found that all reliable study variables have positive relationship with SMEs’ business success, but only three are significant while he two variables have no statistical significance. The chapter finally provides recommendations to various stakeholders.