ASSESSING THE WELFARE MICRO-ENTREPRENEURS BUSINESS SUCCESS FACTORS

Faculty of Economics and Business
ASSESSING THE WELFARE MICRO-ENTREPRENEURS

BUSINESS SUCCESS FACTORS
MOHAMMED YAAKOB BIN HAJI MORSHIDI
Doctor of Business Administration

2024
Assessing The Welfare Micro-Entrepreneurs
Business Success Factors
A dissertation submitted
In fulfillment of the requirements for the Degree of Doctor of Business Administration

UNIVERSITI MALAYSIA SARAWAK
2024
Assessing The Welfare Micro-Entrepreneurs
Business Success Factors
A thesis submitted
In fulfillment of the requirements for the degree of Doctor of Business Administration

UNIVERSITI MALAYSIA SARAWAK
2024
DECLARATION
I declare that the work in this thesis was carried out in accordance with the
regulations of Universiti Malaysia Sarawak. Except where due acknowledgements have
been made, the work is that of the author alone. The thesis has not been accepted for any
degree and is not concurrently submitted in candidature of any other degree.
……………………………
Signature
Name: Mohammed Yaakob Bin Haji Morshidi
Matric No.: 20040021
Universiti Malaysia Sarawak
Date :
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ACKNOWLEDGEMENT
I would like to express my heartfelt gratitude and appreciation to the following individuals
whose unwavering support and guidance have been instrumental in the completion of this
thesis.
To my beloved wife, Dayang Norliati Binti Abang Shamat, your unwavering love,
understanding, and constant encouragement kept me motivated throughout this journey.
Your belief in me made the impossible feel attainable. I am indebted to my parents, Haji
Morshidi Wahap, and Zapinar Wasli, for their unconditional love, guidance, and sacrifices
they made to provide me with an education. Your endless support gave me the strength to
pursue my dreams.My heartfelt thanks go to my siblings for their encouragement and
unwavering support. You have been pillars of strength during challenging times.
I want to express my sincere gratitude to my supervisor, Professor Dr. Mohammad
Affendy Arip, for his invaluable guidance, expert knowledge, and unwavering support.
Your mentorship has been pivotal in shaping both this thesis and my academic growth. I
extend my thanks to the Centre for Graduate Studies at UNIMAS for providing a
conducive environment and essential resources that were crucial to the successful
completion of this research. I am also appreciative of my director at the Sarawak Welfare
Department for granting me the time and opportunity to pursue my studies. Your
understanding and support were truly invaluable. To my colleagues at the Sarawak Welfare
Department, your assistance in connecting me with respondents and providing insights for
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my research were immensely helpful. Your contributions played a significant role in the
success of this work.
Lastly, heartfelt thanks to all the individuals who participated in my study and shared their
experiences. Your willingness to contribute made a meaningful impact on this research.
This journey would not have been possible without the support of these wonderful
individuals. I am grateful for their presence in my life, which has enriched both my
personal and scholarly growth. Thank you all for being a part of this remarkable journey.
With sincere appreciation.
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ABSTRACT
The Welfare Micro-Entrepreneurs (Usahawan Mikro Kebajikan-UMK) program initiated
by the Sarawak Social Welfare Department (JKMS) aims to empower welfare recipients
through micro-entrepreneurship and economic self-sufficiency. This empirical study seeks
to assess the business success factors that contribute to the effectiveness of the UMK
program in Sarawak, Malaysia. By analyzing data collected through surveys and utilizing
existing online sources, this research identifies and evaluates the key factors that drive the
success of UMK participants in establishing and maintaining micro-businesses.
A significant research gap exists in understanding the specific factors that influence the
success of welfare-driven micro-entrepreneurship programs, particularly in the context of
Sarawak. While previous studies have explored micro-entrepreneurship in general, there is
a lack of targeted research on welfare recipients transitioning to entrepreneurs within this
unique socio-economic and cultural setting.
The theoretical framework for this study incorporates elements from entrepreneurial
success theories, including the Resource-Based View (RBV), which emphasizes the
importance of resources and capabilities in achieving competitive advantage, and the
Social Capital Theory, which highlights the role of networks and relationships in
entrepreneurial success. Additionally, the study considers the Theory of Planned Behavior
(TPB) to understand the intentions and behaviors of UMK participants in their
entrepreneurial journey.
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Through a structured questionnaire administered to 166 UMK participants selected through
a rigorous sampling process, this study investigates the factors related to financial
management, marketing strategies, business planning, and program support that
significantly influence participants' income levels and overall success. The collected data
are subjected to statistical analysis, including descriptive and inferential techniques, to
discern patterns and correlations among the identified success factors.
The research findings shed light on the intricate relationship between the UMK program's
design and its impact on participants' socio-economic outcomes. Key outcomes of the
study include identifying the critical success factors such as effective financial
management practices, robust marketing strategies, comprehensive business planning, and
strong support mechanisms from the UMK program. These factors significantly contribute
to the participants' ability to generate sustainable income and achieve business success.
The study contributes to a deeper understanding of how the UMK program can effectively
promote micro-entrepreneurship as a means of poverty alleviation and sustainable
development. The implications of the identified success factors are discussed in relation to
policy enhancements and programmatic improvements, providing valuable insights for
policymakers, program administrators, and stakeholders.
By bridging the gap between theory and practice, this empirical study advances the
discourse on poverty reduction, micro-entrepreneurship, and socio-economic
empowerment. Ultimately, the research underscores the importance of fostering an
enabling environment for micro-business growth and highlights the UMK program's
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potential to drive positive change within Sarawak's welfare recipients and their
communities.
Keywords: Entrepreneur, welfare, business, research gap, Resource-Based View, Social
Capital Theory, Theory of Planned Behavior
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ABSTRAK
Program Usahawan Mikro Kebajikan (UMK) yang dilaksanakan oleh Jabatan Kebajikan
Masyarakat (JKMS) Sarawak bertujuan memperkasakan penerima kebajikan melalui
keusahawanan mikro dan sara diri ekonomi. Kajian empirikal ini bertujuan untuk menilai
faktor kejayaan perniagaan yang menyumbang kepada keberkesanan program UMK di
Sarawak, Malaysia. Dengan menganalisis data yang dikumpul melalui tinjauan dan
menggunakan sumber dalam talian sedia ada, penyelidikan ini mengenal pasti dan menilai
faktor utama yang mendorong kejayaan peserta UMK dalam menubuhkan dan
mengekalkan perniagaan mikro.
Terdapat jurang penyelidikan yang ketara dalam memahami faktor khusus yang
mempengaruhi kejayaan program keusahawanan mikro yang didorong oleh kebajikan,
terutamanya dalam konteks Sarawak. Walaupun kajian terdahulu telah meneroka
keusahawanan mikro secara umum, terdapat kekurangan penyelidikan khusus mengenai
penerima kebajikan yang beralih menjadi usahawan dalam suasana sosio-ekonomi dan
budaya yang unik ini.
Kerangka teori kajian ini menggabungkan elemen daripada teori kejayaan keusahawanan,
termasuk Pandangan Berasaskan Sumber (Resource-Based View, RBV) yang menekankan
kepentingan sumber dan keupayaan dalam mencapai kelebihan kompetitif, dan Teori
Modal Sosial (Social Capital Theory) yang menekankan peranan rangkaian dan hubungan
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dalam kejayaan keusahawanan. Selain itu, kajian ini mengambil kira Teori Tingkah Laku
Terancang (Theory of Planned Behavior, TPB) untuk memahami niat dan tingkah laku
peserta UMK dalam perjalanan keusahawanan mereka.
Melalui soal selidik berstruktur yang diberikan kepada 166 peserta UMK yang dipilih
melalui proses persampelan yang ketat, kajian ini menyiasat faktor-faktor yang berkaitan
dengan pengurusan kewangan, strategi pemasaran, perancangan perniagaan, dan sokongan
program yang secara signifikan mempengaruhi tahap pendapatan peserta dan kejayaan
keseluruhan. Data yang dikumpul tertakluk kepada analisis statistik termasuk teknik
deskriptif dan inferensi untuk membezakan corak dan korelasi antara faktor kejayaan yang
dikenal pasti.
Penemuan penyelidikan menjelaskan hubungan rumit antara reka bentuk program UMK
dan kesannya terhadap hasil sosio-ekonomi peserta. Hasil utama kajian ini termasuk
mengenal pasti faktor kejayaan kritikal seperti amalan pengurusan kewangan yang
berkesan, strategi pemasaran yang kukuh, perancangan perniagaan yang komprehensif, dan
mekanisme sokongan yang kuat daripada program UMK. Faktor-faktor ini menyumbang
dengan ketara kepada keupayaan peserta untuk menjana pendapatan mampan dan
mencapai kejayaan perniagaan.
Kajian ini menyumbang kepada pemahaman yang lebih mendalam tentang bagaimana
program UMK boleh menggalakkan keusahawanan mikro secara berkesan sebagai kaedah
pembasmian kemiskinan dan pembangunan mampan. Implikasi faktor kejayaan yang
dikenal pasti dibincangkan berkaitan dengan penambahbaikan dasar dan program,
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memberikan pandangan yang berharga untuk penggubal dasar, pentadbir program, dan
pihak berkepentingan.
Dengan merapatkan jurang antara teori dan amalan, kajian empirikal ini memajukan
wacana tentang pengurangan kemiskinan, keusahawanan mikro, dan pemerkasaan sosio-
ekonomi. Akhirnya, penyelidikan ini menggariskan kepentingan memupuk persekitaran
yang membolehkan pertumbuhan perniagaan mikro dan menyerlahkan potensi program
UMK untuk memacu perubahan positif dalam kalangan penerima kebajikan Sarawak dan
komuniti mereka.
Kata kunci: Usahawan, kebajikan, perniagaan, jurang penyelidikan, Pandangan
Berasaskan Sumber, Teori Modal Sosial, Teori Tingkah Laku Terancang
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TABLE OF CONTENTS
Page
DECLARATION i
ACKNOWLEDGEMENT ii
ABSTRACT iv
ABSTRAK vii
TABLE OF CONTENTS x
LIST OF TABLES i
LIST OF FIGURES ii
LIST OF ABBREVIATIONS i
CHAPTER 1 INTRODUCTION 2
1.1 Introduction 2
1.2 Background 3
1.2.1 Welfare Assistance Scheme 15
1.2.2 Productive Welfare Recipient 18
1.2.3 Welfare Micro Entrepreneurs (UMK) 21
1.3 Problem Statement 29
1.4 Research Questions 35
1.5 Research Objective 36
1.6 Research Hypothesis 36
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1.6.1 Hypothesis 1 36
1.7 Significance of the study 38
1.8 Organisation Of Study 42
CHAPTER 2 LITERATURE REVIEW 45
2.1 Introduction 45
2.2 Theoretical Review 45
2.2.1 Resource-Based View (RBV) 47
2.2.2 Social Capital Theory 48
2.2.3 Theory of Planned Behavior (TPB) 49
2.2.4 The Importance of Business Performance for Successful Entrepreneurs 49
2.2.5 The impact of Innovativeness on Entrepreneurial Success 50
2.2.6 The Role of Proactivity in Driving Entrepreneurial Success 51
2.2.7 The Significance of Risk-Taking 51
2.2.8 The Complex Influence of Competitive Aggressiveness 52
2.2.9 Financial Planning 52
2.2.10 The Power of Effective Marketing Strategies 53
2.2.11 The Role of Product Production and Quality in Entrepreneurial Success 54
2.3 Related Empirical Studies 55
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2.3.1 Financial Management 55
2.3.2 Marketing Strategies 55
2.3.3 Business Planning 56
2.3.4 Program Support 56
2.3.5 Innovativeness 56
2.3.6 Risk-Taking 57
2.3.7 Proactivity 57
2.3.8 Competitive Aggressiveness 58
2.4 Research Gap 58
CHAPTER 3 METHODOLOGY 61
3.1 Introduction 61
3.2 Research Design 70
3.3 Population And Sampling Technique 71
3.3.1 Population 71
3.3.2 Sampling Technique 71
3.4 Instrument Development 77
3.4.1 Detailed Breakdown 81
3.5 Data Collection 82
3.6 Data Analysis 83
3.6.1 Validation Of The Measurement Model 83
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3.6.2 Structural Model Analysis 83
3.6.3 Hypothesis Testing 84
CHAPTER 4 FINDINGS AND DISCUSSIONS 85
4.0 Introduction 85
4.1 Descriptive Analysis of Respondents 85
4.1.1 Demographic Profile of Respondents 86
4.1.2 Business Characteristics of Respondents 86
4.1.3 Success Factors of UMK Participants 87
4.2 Results 96
4.2.1 Outer Loadings Results: 96
4.2.2 Path Coefficients Results: Competitive Aggressiveness (CA) 98
4.2.3 Construct Reliability and Validity Results 102
4.2.4 R-Square Results 103
4.2.5 F-Square Results 103
4.2.6 Discriminant Validity 105
4.2.7 T-Statistics 105
4.2.8 Model Fit 106
4.3 Discussion 107
4.3.1 Interpretation of Key Findings 107
4.3.2 Comparison with Previous Studies 108
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4.3.3 UMK Program As A Whole 109
CHAPTER 5 CONCLUSIONS 111
5.1 Introduction 111
5.2 Summary Of Findings 111
5.3 Policy Recommendations 114
5.3.1 Based on the Findings 115
5.4 Limitation Of Study 117
5.5 Recommendation For Future Research 119
REFERENCES 125
APPENDICES 136
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LIST OF TABLES
Table 1.1: Growth of Domestic Product in Selected Regional Economic Groups
Table 1.2: Eight Scheme of Monthly Assistance
Table 1.3: One-Off Aid/Assistance
Table 3.1 : Summary of Key Success Factor
Table 3.2 Participants Criteria Solution
Table 3.3 : Questionnaire Structure and Number of Items in Each Section
Table 4.1: Business Characteristics of Respondents
Table 4.2: Success Factors of UMK Participants
Table 4.3 : Summary List by Marital Status
Table 4.4: Outer Loadings Results for Success Factors
Table 4.5: Path Coefficients Results for Competitive Aggressiveness
Table 4.6: Path Coefficients Results for Other Constructs
Table 4.7: Construct Reliability and Validity Results
Table 4.8: R-Square Results
Table 4.9: F-Square Results
Table 4.10: Fornell-Larcker Criterion
Table 4.11: T-Statistics for Path Coefficients
Table 4.12: Model Fit Indices
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LIST OF FIGURES
Page
Figure 1.1: Mean and Median Salary by Year
Figure 1.2: Mean and Median income by state (RM)
Figure 1.3: Success Story Recognized by Sarawak Welfare Department
Figure 1.4: Total of UMK program participant from 2013 – 2021
Figure 3.1: Research Design
Figure 3.2: Conceptual Framework
Figure 4.1 : Respondent by Division
Figure 4.1.2 : Respondent by Gender
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LIST OF ABBREVIATIONS
CGS Centre for Graduate Studies
UNIMAS Universiti Malaysia Sarawak
UMK Usahawan Mikro Kebajikan
PGK Paras Garis Kemiskinan
RMKe11 Rancangan Malaysia Kesebelas
B-40 Below 40% of Income Earners
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CHAPTER 1
INTRODUCTION
1.1 Introduction
The Welfare Micro-Entrepreneurs (Usahawan Mikro Kebajikan-UMK) program in
Sarawak, Malaysia, represents a vital initiative aimed at transforming welfare recipients
into micro-entrepreneurs, thereby elevating their economic status and contributing to
poverty alleviation. This chapter introduces the research focus, outlines the background of
the UMK program, highlights the significance of assessing its business success factors, and
presents the structure of the study.
The Sarawak Social Welfare Department (JKMS) launched the UMK program as a
strategic response to address the multifaceted challenges faced by welfare recipients. With
the objective of fostering self-reliance and socio-economic integration, the UMK program
extends financial support and resources to eligible individuals, enabling them to establish
and operate micro-businesses.
The UMK program aligns with the Malaysian government's commitment to uplifting
marginalized communities while promoting entrepreneurship as a sustainable means of
income generation. As the program aims to transition participants from welfare
dependency to self-sufficiency, an empirical exploration of its business success factors
becomes imperative to ensure its efficacy and impact.
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1.2 Background
Poverty and Economic Development
The UMK program, initiated in 2013 by the Sarawak Social Welfare Department (JKMS),
represents a dynamic response to the persistent challenge of poverty and socio-economic
disparity within the region. Poverty remains a pressing issue in Sarawak, affecting
individuals and communities across various divisions. The UMK program emerges as a
strategic intervention to empower welfare recipients and equip them with the tools to
transcend their current economic circumstances.
According to Todaro (1997), poverty involves two main aspects: the economic aspect and
the social aspect. Social imbalance causes economic imbalance, and economic imbalance
creates social imbalance. This cyclical relationship means that efforts to address poverty
must consider both economic and social dimensions. Lauer and Lauer (2002) argue that
poverty results from the failure of social policy implementation. Agencies and
development workers should implement programs and activities that can improve the
social functionality of the community. Asselin and Anh (2010) conducted a study on
poverty indicators in Vietnam. Among the indicators/indicators used are unemployment,
serious illness, adults who cannot read, write, and count (illiterate), children who do not go
to school, no radio and TV, type of residence, drinking water, and sanitation/toilets. From
these indicators, basic human capabilities can be identified, namely; the ability to create
income, the ability to get an education and communication, and the ability to live healthily.
In summary, this study explains the concept of human poverty and physical poverty.
However, Asselin and Anh found it quite difficult to clearly describe socio-economic
poverty without an aggregate measure of human poverty and physical poverty. Therefore,
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they use composite indicators. To form a composite indicator for the eight indicators, they
used Multiple Correspondence Analysis (MCA). This composite indicator is divided into
two sub-indicators, which are human assets (jobs, pain, illiteracy, schooling) and physical
assets (radio and TV, housing, drinking water, toilets). Poverty is a major issue that
significantly influences the transformation process of Sarawak's economy towards
becoming a developed state in Malaysia. It is a multifaceted phenomenon associated with a
lack of economic resources at the individual or community level, resulting in adverse
social impacts. At a micro level, economic factors are critical inputs that determine
individual and household productivity. Various scholars have proposed different
definitions of poverty, consistently highlighting the inability to fulfil basic needs such as
food, clothing, shelter, and education.
Defining poverty is challenging as it varies from one country to another and from one
culture to another (Anand, 1993). The concept of poverty encompasses not only a person's
income level and way of life but also social norms, culture, and philosophy of life. For
instance, what constitutes poverty in a developed country might differ significantly from
the perception of poverty in a developing country.
Shulman (1999) believes that poverty is due to the inability of development personnel to
perform their roles effectively in helping the community increase income. This failure
makes it difficult to eradicate poverty and ultimately wastes public funds. Accurate
measures of poverty are crucial as they provide a clear understanding necessary for
forming effective policies (Alkire & Foster, 2011). For instance, the Multidimensional
Poverty Index (MPI) developed by the United Nations Development Programme (UNDP)
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considers various deprivations at the household level in education, health, and living
standards.
In Malaysia, the incidence of poverty is measured through both absolute and relative
poverty lines. Absolute poverty is defined by the Poverty Line Income (PLI), which
measures the minimum income required to meet basic needs. Relative poverty, on the other
hand, compares the income of the poor with the median income of the population. Both
measures are critical for understanding the scope and scale of poverty in Sarawak and
formulating targeted interventions.
Economic Development and UMK Program
Sarawak, a diverse state in Malaysia with a rich cultural heritage, is characterized by both
urban and rural communities. The state's economy is undergoing a transformation with
efforts to promote economic diversification and entrepreneurship. Historically reliant on
resource-based industries such as timber and oil palm, Sarawak is now focusing on sectors
like manufacturing, services, and digital economy to drive growth.
The Welfare Micro-Entrepreneurs (Usahawan Mikro Kebajikan, UMK) program launched
by the Sarawak Social Welfare Department (JKMS) aims to empower welfare recipients
through micro-entrepreneurship. This program provides training, mentoring, and financial
assistance to participants to help them start and manage their own small businesses. By
facilitating access to resources, training, and financial assistance, the program aims to
catalyze the growth of small-scale businesses, enabling participants to generate sustainable
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incomes.
The UMK program operates within a dynamic policy landscape that emphasizes the
importance of social welfare and economic development. Malaysia’s Eleventh Malaysia
Plan (2016-2020) and the subsequent Twelfth Malaysia Plan (2021-2025) both underscore
the importance of inclusive growth and social well-being. These plans highlight the need
for comprehensive approaches that integrate economic, social, and environmental
dimensions of development.
As Malaysia strives to achieve its development goals, including those outlined in the
Sustainable Development Goals (SDGs), the UMK program contributes to the realization
of these aspirations at the grassroots level. Goal 1 of the SDGs, which aims to end poverty
in all its forms everywhere, directly aligns with the objectives of the UMK program. By
reducing participants' dependency on welfare aid and enhancing their income and quality
of life, the program plays a pivotal role in poverty alleviation.
The UMK program is designed to address various barriers that welfare recipients face in
becoming self-reliant entrepreneurs. These barriers include lack of access to capital,
limited business skills, and inadequate market knowledge. The program provides
comprehensive support through business training workshops, mentorship from experienced
entrepreneurs, and access to micro-financing options. This holistic approach ensures that
participants are well-equipped to start and sustain their businesses.
This study will assess the effectiveness of the UMK program in helping participants
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achieve business success and break the cycle of poverty. The primary focus is to identify
the success factors contributing to the program's effectiveness, including financial
management, marketing strategies, business planning, and program support. Effective
financial management is crucial for micro-entrepreneurs to ensure profitability and
sustainability. Marketing strategies help participants understand and penetrate their target
markets, while comprehensive business planning provides a roadmap for growth and
development.
Moreover, the study will explore the role of program support in fostering a conducive
environment for entrepreneurship. Support mechanisms such as continuous mentoring,
peer networks, and follow-up training sessions are essential for reinforcing the skills and
knowledge gained during initial training. The UMK program also leverages digital
platforms to provide ongoing support and resources, making it easier for participants to
access information and connect with mentors.
In light of the program's significance and the potential it holds for fostering socio-
economic advancement, this research seeks to shed light on the UMK program's business
success factors. By unravelling the drivers of success among UMK participants, this study
contributes to the broader discourse on poverty alleviation, micro-entrepreneurship, and
sustainable development. Through a comprehensive examination of these factors, this
research endeavour aspires to provide a foundation upon which future efforts can be built
to create lasting positive change in the lives of welfare recipients and their communities in
Sarawak.
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Additionally, the study will draw comparisons with similar programs in other regions or
countries to highlight best practices and areas for improvement. For instance, micro-
entrepreneurship initiatives in countries like Bangladesh and India have demonstrated
significant success in empowering marginalized communities. By comparing these
programs, the study aims to glean insights that can be adapted to enhance the UMK
program's effectiveness.
In other words, the quality of input or production factors is the determinant of economic
success at the micro level and then the macro level. The approach to assess the issue of
micro and macro-economic development capacity is to look at the quality of inputs in an
economy. United Nations (UN) in their website that was posted on January 25, 2021 stated
that their eighth goals are to “promote inclusive and sustainable economic growth,
employment and decent work for all”. Table 1.1 that was published by the United Nation
stated that although the worldwide economy started to bounce back in 2021, getting some
improvement joblessness, recuperation stays tricky and delicate.
Table 1.1: Growth of Domestic Product in Selected Regional Economic Groups
Annual Percentage Change 2019 2020 2021 2022

SAARC (South Asian Association for 4.5 -8.0 7.1 5.5
Regional Cooperation)
European Union (EU) 1.5 -7.4 4.8 2.7
SIDS, Small Island Developing States 1.5 -6.8 4.7 3.0
MERCOSUR, Southern Common Market 0.5 -6.5 3.6 2.3
(Mercado Común Del Sur)
OECD, Organization for Economic 1.7 -5.5 4.0 2.6
Cooperation and Development
G7, Group of Seven 1.6 -5.5 4.0 2.5
G20, Group of Twenty 2.6 -4.1 4.8 3.4
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ASEAN, Association of Southeast Asian 4.3 -3.7 5.6 4.7
Nation
Note. Adapted from United Nation Website Source: https://www.un.org/development/desa/dpad/wp-
content/uploads/sites/45/WESP2020_Annex.pdf (2023)
Based on the report by the United Nation (UN) (Martin, 2023), supported and
comprehensive monetary development can drive progress, make good positions for all
and work on expectations for everyday comforts. Indeed, even before the episode of
Coronavirus, one of every five nations home to billions of individuals residing in
destitution were probably going to see per capita salaries decrease in 2020. This data
was generated by the World Economic Forecasting Model (WEFM) and was published
on October 11,2022. Presently, the monetary and monetary shocks related with the
pandemic like interruptions to modern creation, monetary market unpredictability, and
rising weakness are crashing the generally lukewarm financial development and
intensifying elevated takes a chance from different variables.
This where the Social Welfare Department plays a very useful role in development, in
addition to contributing to all tasks aimed at structural change and institutional
development. Therefore, the Social Welfare Department is interpreted with various
Rehabilitation functions and Development functions. The concept and meaning of
social welfare in the context of scientific studies is always linked to social problems in
society, poverty, pain or suffering and social disorganization in human history. Even
so, the evolution starting from the 19th and 20th centuries has caused many new social
problems in humanitarian institutions, families, neighborhoods and local communities.
Social institutions are not enough for industrial society to solve social problems that
arise quickly in society. Because of the need to have a social service system that can
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curb all existing social symptoms. The concept of absolute poverty was introduced by
Charles Booth in 1887, the result of a study made in east London (Laderchi 2000). For
Malaysia, the concept of absolute poverty measured based on the PGK was introduced
in 1977 until 2005. Then starting in 2005, the PGK was updated again to be more
comprehensive and better than before (EPU 2007). Even so, economists argue that this
approach does not describe multi-dimensional poverty clearly (Mohamed Saladin et al.
2011a).
Based on the Malaysian Household Income and Poverty Incidence Estimate Report,
2020 which contains the findings of a study of the impact of COVID-19 on household
income in Malaysia in 2020 by the Department of Statistics Malaysia, salaried and
self-employed income which is the main source of household income respectively
each has recorded a decrease of negative 16.1 percent and negative 9.7 percent. This
decrease is caused by households or individuals who have experienced a loss or
reduction in income, especially those who are employed, self-employed and others.
Furthermore, this reduction in income is not only a result of job loss but is also
contributed to by reduced working hours and an increase in unskilled labour.
The number of households with an income of less than RM2,500 has increased by 12.5
percent. Meanwhile, as many as 20.0 percent of the M40 household group with
incomes between RM4,850 and RM10,959 have switched to the B40 group.
Households in the T20 group have also been affected by the COVID-19 pandemic,
where 12.8 percent of households from this group have switched to the M40 group. As
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the percentage of income decline for B40 and M40 households is greater than for the
T20 household group, the distribution of income for B40 and M40 decreased to 15.9
percent (2019: 16.0%) and 36.9 percent (2019: 37.2%) respectively.
Average and Median Monthly Gross Household Income by State, Malaysia, 2019 and 2020
by DOSM that was published on August 6, 2023 shows that Sarawak median reduce from
RM4,544 to RM3,831 by 15.7 percent, as for the mean it shows a reduction from RM5,959
to RM5,087 by 14.6%. However, this measure does not reflect the total number of poor
people and cannot show the distribution between poor people and rich people that is
balanced (Albert & Collado 2004). “Incidence of Absolute Poverty by State, Malaysia,
2019 and 2020” by Department of Statistics Malaysia (DOSM)” from the report also shows
that the increasing number of poor households from 405.4 thousand to 639.8 thousand in
2020. Absolute poverty shows an increase of 2.8% on 2020 compare to 2019 that is 5.6%.
Absolute poverty by state shows that Sarawak recorded an increase in percentage from the
previous year by 3.9 percentage points to 12.0 per cent from 9.0 per cent (2019). With this,
Sarawak is ranked as the third poorest state in Malaysia.
The Sarawak State Government has identified 20 Key Result Areas to bring Sarawak
as a Progressive and Prosperous Sarawak by 2030. The State Government has
identified the agenda of eradicating poverty and the well-beings of Sarawakian key
mission in all project planning as well as economic development programs. To achieve
this mission, the two main goals identified in the strategic role of developing Sarawak
as a high-income state in Malaysia are to increase revenue and reduce the
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socioeconomic gap.
These two strategic goals are related to each other. However, in terms of operating
definition, it has a key performance index (KPI) and different impact. The first
strategic goal is to focus on transforming the target's immediate financial status beyond
the minimum wage level or the current poverty line. This directly requires the design
and strategic action of revenue generation among the B-40 targets. However, the
success of this effort depends largely on market forces.
The second goal is more to the sharing of wealth which leads to a reduction in the
income disparity in household income especially between the Top-20 and Bottom-40
groups. Government intervention on market power is critical for this purpose. Without
government intervention in terms of fiscal policy, monetary policy and creative
socioeconomic development initiatives, market power will give more incentive for the
Top -20 group (which has the resources) to continue to push their income gap to the
next level. One of the potential strategies for this purpose is to ensure that each project
and economic development program has a direct and indirect objective of the target
group, B40. To this end, JKMS as an agency holding a portfolio that is directly related
to marginal society should seek the government's mandate to ensure that all agencies
put the B40 development agenda in every project and government development
program, whether in projects involving physical development and also not physical,
Micro Entrepreneurship is an accomplishment in animating pay for the poor networks
through independent work, building up the money related framework in poor zones,
12
building singular independence, and making the conditions required for individuals
living in neediness to begin new organizations or grow existing organizations. This is
based to Green (2006), Jurik (2005), Midgley (2008), and Strier (2010). Contra to
Jones (2004), Midgley (2008), Mosley and Hulme (1998) and Nawaz (2010) the
scientists note that the advantages of Micro Entrepreneurship profitability have not yet
come to the least fortunate of poor people.
Figure 1.1: Mean and Median Salary by Year

Note. Adapted from DOSM Source: https://open.dosm.gov.my/data-catalogue/dosm-public
economy_hiesba_percentiles_2?year= 2022&state=malaysia, 2022
13
Data by Department of Statistic Malaysia (DOSM) showed that salaries and wages in
2021 is detailed by their age of group, sex and category of skills. From the data
collected and analyzed by DOSM it shows that in 2021, the number of salaries and
wages recipients rose by 3.4%. In the meantime, the median monthly salaries and
wages accelerated by 9.1% to RM2,250 as compared to the previous year. This can be
preview in the Figure 1.
Figure 1.2: Mean and Median income by state (RM)

Source: https://open.dosm.gov.my/data-catalogue/dosm-public economy_hiesba_percentiles_2?year=
2022&state=malaysia
DOSM (2022) stated that the mean monthly salaries and wages rebounded by 3.5 per cent
to register RM3,037 after recording a decline for the first-time last year (2020: -9.0%;
RM2,933). The rise in median and mean monthly salaries and wages was partly
contributed by the continuous resumption of economic and social activities during the
second half of the year, after the country was surrounded by the COVID-19 pandemic.
Figure 1.2 data by Department of Statistic Malaysia (DOSM) shows that Sarawak mean
and median also for 2021 compared to 2020.
14
From this information, poverty for Sarawak is still ranked as the third highest in
Malaysia. Sarawak government has identified the two main goals in alleviating this
poverty in Sarawak and to action Sarawak Welfare Department as the spearheading
agencies that have the details of productive recipients have form a program that is to
develop entrepreneurs. To understand more what is welfare aid recipient’s definition,
productive welfare recipients and also what is the Welfare micro-Entrepreneur it will
be discussed as below.
1.2.1 Welfare Assistance Scheme
Financial assistance services by the Social Welfare Department are provided to target
groups in need so that they can continue to survive perfectly. In principle, in implementing
assistance to the people, the Malaysian Government has never adopted the concept of a
Welfare State. The aid scheme created is a tool in the process of helping clients towards
recovery, prevention, development and integration, which is a method in social work. The
process of providing welfare assistance also takes into account the potential of each aid
recipient who is still productive towards independent living.
15
Table 1.2: Eight Scheme of Monthly Assistance
Source of Name of Assistance Assistance Rate

Assistance
State Belia-Beliawanis Aid (BBB) RM200.00 person
Government
General Aid RM200.00 - RM300.00 / Family
Federal Aid for the Care of Disabled Persons/ RM500.00 per person
Government Chronically Abandoned Patients (BPT)
Aid for the Elderly (BWE) RM500.00 per person
Allowance for Employees with RM450.00 per person
Disabilities (EPOKU)
Assistance for disabled people unable RM300.00 per person
to work (BTB)
Child Aid (BKK) Maximum RM1,000.00 / family
RM150.00 - RM1,000.00
RM150.00 per child age 7 - 18 years old
RM200.00 per child age 6 years old and below
Foster Child Help (BAP) Maximum RM500.00 for 2 child or more)
RM250.00 - RM500.00
RM250.00 per child
Source: Sarawak Welfare Department, (2023)
The Social Welfare Department have outlined several objectives of assistance which
is:
Fulfill basic needs to ease the burden of aid recipients. Social support tools to assess
the ability of aid recipients to become independent and reduce dependence on aid.
Rehabilitation tools so that aid recipients continue to live with the community.
Temporary financial resources for aid recipients to continue their survival and well-
being. The implementation of welfare assistance is in line with the Concurrent List
between the federal and state governments, which is enshrined in the provisions of the
Federal Constitution of Malaysia under list 3 - the ninth schedule of the Legislative
List. As for Sarawak Welfare Department the implementation of welfare assistance as
Table 1.2 and Table 1.3 that have been listed by the Sarawak Welfare Department.
16
Table 1.3: One-Off Aid/Assistance
Source of Name of Assistance Assistance Rate
Assistance
State Assistive Technology / Assistive The actual price of the parts
Government Technology (BAT/S)
Courtesy of Death Assistance (BIK) Payment to the heirs of Kenyalang Gold Card (KGC)
holders (card holders who are not government
pensioners and do not receive the Death Charity
Scheme from other agencies)
Ex-Patient Aid Transportation Fare (actual rate)

Funeral Assistance (Rumah Sarawak) The actual cost of transportation from the Peninsula to
Sarawak
Help for Stranded / Stranded Cases Transportation Fare (actual rate)
Medical assistance Funding partially or fully medical costs for any type of
illness that has been diagnosed by the Officer
Government Medicine and need immediate treatment.
School Aid Existing aid recipients who have children under 18 or

over 18 for first admission to IPTA. Types of Assistance
for payment:
 School / Study Fees
 Examination Fee
 Transportation Fare - bus / van, boat, plane
 School uniform
Special Assistance for Kidney Patients A. Clinical Assistance:
(BPBP)  AVF installation
 Hemodialysis Treatment
 EPO injection
 CAPD treatment
B. Support Assistance:
 Transportation Assistance
 Transplant Aid
Federal Assistance to Victims of Wild Animal Total or partial permanent disability (rate of payment
Government Attacks (BSBB) depends on the extent of the injury)
Immediate Assistance Fund (TBS) 7 Recipient Categories:
 Immediate Help
 Immediate Assistance Through Activities /
Programs Social Assistance (outreach
program)
 First Payment for Monthly Assistance
 Refund
 Minor / Isolated Disaster Victims
 Stranded Case
 Help at once for cases in need
Before 1993 Sarawak Welfare Department is placed under the Welfare Division of the
17
Ministry of Social Development. Starting from 28 September 2011 it is then placed
under the new ministry that is the Ministry of Welfare, Women and Development
Family. Thus, the general subject matter covered in this research is a group of welfare
recipients which is categorized as hardcore poor who have various socio-economic
constraints and are marginalized by development. Welfare Department stated in their
guidelines that family income below the current Poverty Line Income (PGK) which is
RM1,190 in Peninsular Malaysia, RM1,200 in Sarawak and RM1,170 in Sabah. This
figure is based on the Welfare Department circular year 2022. Indigent and needy
groups taking into account other factors such as the number of children/dependents
living together and separately, the level of disability of the head of the family or family
members, support from family members, the condition and equipment of the home
based on the needs of the family and other reasonable factors and can provide an
overview of the applicant's/family's financial position and daily expenses (Jabatan
Kebajikan Masyarakat Sarawak, n.d.).
1.2.2 Productive Welfare Recipient
Despite the country's economic growth and efforts to reduce poverty, Malaysia is starting
to experience problems due to changes in its population and the vulnerability of certain
groups. In simple terms, things are not as smooth as they seem. In Malaysia, the
government is struggling to provide enough social welfare services because more people
need help. This is a big challenge because different parts of the country have different
needs. For example, in 2015, Sarawak wanted more control over deciding how to help
people, instead of the main government making all the decisions. This is because they
18
thought local people know better about what they need. This statement was given by
Premier of Sarawak on the 21 July 2021 at Bernama.
Basiran and Abdul Lasi (2023) mention social media has made things even harder. People
are using social media to watch what the government is doing more closely. This puts a lot
of pressure on the government to do better. Some states, like Selangor and Penang, are
trying to help people more by giving them money. But these efforts are sometimes seen as
just a way to get votes and not as a real solution to problems.
The Productive Welfare Division is responsible for managing the financial assistance
services provided by JKM (Social Welfare Department). This division has undergone
changes over the years, including its name, the types of aid offered, and the amount of
financial support provided. Each year, this division allocates a significant budget to help
eligible recipients all across Malaysia. The assistance is meant to be temporary and ends
when the recipients become financially independent. In 2016, the Productive Welfare
Division spent about RM1.53 billions of federal funds to assist 462,322 recipients
throughout the country. This aid is designed to support recipients in their daily lives and
meet their basic needs, with the goal of helping them regain independence (Zahir, 2018).
Financial assistance services are offered by the Social Welfare Department to specific
groups in need, aiming to ensure their well-being. The assistance is provided based on a
structured plan that helps recipients in their journey towards recovery, prevention,
development, and integration, using social work methods. When providing welfare
19
assistance, the potential of each recipient to become self-sufficient is taken into account,
especially if they can still be productive and support themselves independently.
The objectives of this aid include:
1. Meeting basic needs to alleviate the burdens of recipients.
2. Using social support tools to evaluate recipients' potential for independence and
reduce reliance on aid.
3. Offering rehabilitation tools to help recipients continue living within their
communities.
4. Providing temporary financial resources to recipients, ensuring their survival and
well-being continue.
Financial assistance services by the Social Welfare Department are provided to target
groups in need so that they can continue to survive perfectly. In principle, in implementing
assistance to the people, the Malaysian Government has never adopted the concept of a
Welfare State. The aid scheme created is a tool in the process of helping clients towards
recovery, prevention, development and integration, which is a method in social work. The
process of providing welfare assistance also takes into account the potential of each aid
recipient who is still productive towards independent living.
The next specialization will be made from a list of approximately 35,000 welfare recipients
in Sarawak who are categorized as productive from the list of welfare recipients. Here, the
definition of operation for productive welfare recipients refers to subgroups which do not
have critical physical and mental capacity problems.
20
1.2.3 Welfare Micro Entrepreneurs (UMK)
In Sarawak, a number of ministries and agencies are actively involved in implementing
entrepreneurship development programs. These initiatives have been launched by various
government departments with the overarching goal of promoting entrepreneurship and
developing a robust entrepreneurial spirit within the Malaysian community.
Key agencies such as SME Corporation Malaysia (SME Corp. Malaysia), People's Trust
Council (MARA), National Institute of Entrepreneurship (INSKEN), Perbadanan
Usahawan Nasional Berhad (PUNB), Center for Development and Entrepreneurship
Research (CEDAR), and Malaysian Global Innovation and Creativity Center (MaGIC) are
at the forefront of providing support, training, and guidance to budding entrepreneurs.
These institutions have established a number of functions to create a conducive
environment for entrepreneurship to flourish.
Among the main objectives of these agencies is to create a favourable ecosystem for
entrepreneurs. They provide financial facilities, incubators and spaces, and industry-
specific training and mentoring programs. The government's commitment to fostering
entrepreneurship is evident in its extensive financial involvement. In 2016, for example,
some RM5.77 billion was allocated to implement 133 programs that benefited over half a
million SMEs. The following year saw a significant increase, with RM10.5 billion invested
in 168 SME development programs that impacted around 600,000 SMEs across various
sectors.
21
An impressive list of 158 SME development programs was presented by various ministries
and agencies, reflecting a significant financial commitment of RM14.3 billion as of April
2018. This commitment extends to subsequent years and is driven by the introduction of
new programs and improvements under the SME Integrated Action Plan (SMEIPA). This
overarching plan outlines SME development programs for each year, including support for
small and medium-sized enterprises (SMEs) at various stages of their growth journey.
Both SME development and entrepreneurship programs are central to increasing capacity
and competitiveness. These initiatives include a range of incentives, grants, loans, advisory
services, and consulting support to increase productivity and encourage comprehensive
SME contribution. To centralize efforts, the establishment of SME Corporation Malaysia
serves as a central coordinating body under the Ministry of Enterprise Development
(MED). It plays a critical role in harmonizing SME development programs among
ministries and agencies and acts as a reference center for research, data dissemination, and
advisory services for SMEs and entrepreneurs throughout the country.
A notable focus is on the inclusion of youth and women in entrepreneurship programs.
This recognition underscores the importance of promoting inclusive economic growth by
empowering these groups to actively participate in entrepreneurial ventures.
The scope of these programs goes beyond just business development. There is a strong
emphasis on improving human capital through initiatives such as the SME Industry
Training Program-College, the Bumiputera Youth Entrepreneurship Program (TUBE), the
SME Capability Program, the Entrepreneurship and Cooperative Training Program, and
22
the Women's Entrepreneurship Incubator (I-KeuNITA). These programs are designed to
increase participants' knowledge in the entrepreneurial field and equip them with the skills
necessary for successful entrepreneurship.
Entrepreneurship has been recognized as an important national priority, as reflected in the
Eleventh Malaysian Plan (RMKe11). The plan highlights the intention to expand and
comprehensively improve entrepreneurship programs to drive entrepreneurial activities,
especially in rural and urban areas. Collaboration among the agencies and ministries
involved is essential to fostering successful entrepreneurs. Entities such as SME Corp.
Malaysia, TEKUN Nasional and Amanah Ikhtiar Malaysia (AIM) are key partners in
providing extensive business development opportunities that ultimately contribute to the
growth and prosperity of entrepreneurs across the country.
The Economic Development Function carried out by the Sarawak Social Welfare
Department (JKMS) is an essential part of its overarching goal to uplift marginalized and
vulnerable groups in society. By understanding the underlying reasons that necessitate
these functions, we can better appreciate their significance and impact.
One of the main challenges faced by the target groups is economic difficulties. This
encompasses a wide range of issues that hinder individuals and communities from meeting
their basic needs. Poverty, a critical concern, is influenced by various factors, including the
lack of permanent employment opportunities due to limited education levels. This problem
is not restricted to rural areas; it affects urban areas as well. Many households lack assets
or land for income-generating activities, perpetuating the cycle of poverty. Family
23
institutions also play a role in economic vulnerability, especially for single mothers and
those navigating divorce and custody battles.
Another crucial aspect that JKMS addresses is social problems, particularly those
stemming from family dynamics. JKMS's involvement is essential as it deals directly with
issues affecting children, girls, and women who are often caught in negative situations and
manipulated by external forces.
Disasters, calamities, and disabilities also contribute to the challenges faced by the target
groups. JKMS provides assistance to communities struck by natural disasters, fires, and
critical illnesses that disrupt productivity and financial stability. However, the majority of
these aid packages are one-time support, highlighting the need for sustainable solutions.
Out of these three functions, two are geared towards alleviating the socioeconomic burdens
of households and individuals. While financial aid is crucial, there is a risk of fostering
passive reliance on it if not accompanied by strategies to empower recipients to proactively
address their own socioeconomic challenges.
To combat this, the introduction of an economic development program specifically tailored
for welfare aid recipients has gained traction. This initiative, particularly focused on those
capable of productivity, is designed to have lasting positive impacts on the socioeconomic
status of the recipients. Simultaneously, it aligns with the broader state goal of eradicating
poverty and bridging income disparities.
24
The advantages of JKMS's Economic Development Program are manifold. Firstly, the
agency's proximity to the B40 (bottom 40% income group) makes it an optimal choice for
implementing such initiatives. As most of JKMS's functions are already geared towards
helping low-income communities, expanding into economic development programs aligns
with their existing efforts.
Furthermore, targeting the B40 group in economic development is pivotal, given their
unique needs. By concentrating on this group, JKMS can play a crucial role in
complementing the efforts of other agencies, ensuring that the most vulnerable are not left
behind.
The extensive network of branches across divisions and districts is another advantage that
JKMS possesses. This infrastructure enables the effective implementation and monitoring
of economic development programs, overcoming the mobility challenges faced by many
target group members.
A hallmark of JKMS's approach is the holistic design of their Launch Grant Program.
Unlike other agencies' economic programs, JKMS's initiative goes beyond mere financial
assistance. It provides comprehensive training and mentoring for a period of two years,
with an income benchmark established as a measure of success. This approach focuses on
personal development alongside economic growth, with the long-term goal of self-reliance.
Economic Development Function undertaken by JKMS plays a pivotal role in lifting
vulnerable groups from socioeconomic hardships. Through its specialized approach, wide
25
reach, and comprehensive programs, JKMS is well-positioned to contribute significantly to
poverty eradication and equitable economic progress. By understanding the rationale
behind these functions, we gain insight into their importance and the positive impact they
can create within Sarawak's communities.
JKMS also plays a crucial role in achieving community welfare goals through a social
work approach. This involves professional efforts to enhance individuals, groups, or
community capacities to address social needs and establish a supportive environment for
goal achievement. An impactful initiative in enhancing the income of welfare recipients is
the Launch Grant (GP) program, leading to the formation of Welfare Micro Entrepreneurs
(UMK). Since its inception in 2009, a total of 4053 GPs have been sanctioned.
To tackle the challenges of rising welfare recipient numbers and governmental financial
commitments, the Sarawak government and JKMS have jointly introduced an economic
development program for aid recipients. One key program is the Welfare Micro
Entrepreneur Development Program (UMK), where selected participants receive a Launch
Grant of RM5,000. This program operates strategically within the social work framework
to fulfil community welfare objectives. It encompasses a range of professional actions
aimed at enhancing the capacity of individuals, groups, or communities to meet their social
needs and establish conducive conditions.
The success of the Welfare Micro Entrepreneur Development Program holds immense
significance in realizing JKMS's 'exit policy,' which forms a part of the Target Group
Development and Empowerment Program. This program has demonstrated its
26
effectiveness by elevating income levels, enhancing economic status, and improving the
quality of life for community welfare recipients. Additionally, it plays a pivotal role in
imparting independence skills to aid recipients, ultimately helping them transition away
from dependency on welfare assistance.
The program's primary objectives include enabling Micro-Entrepreneurs to consistently
contribute to the economy and elevate their income, enhancing their living standards and
that of their families, fostering independence, and, most importantly, liberating them from
reliance on welfare aid.
Groups that are identified as being productive that is able to work and not categorised as
severe disabilities are specific targets for economic development programs under the
Welfare Micro Entrepreneurship Program (UMK) as well as other initiatives that are
identified as having high impact. UMK is an aid organized under the Sarawak Social
Welfare Department (JKMS) to help small entrepreneurs in increasing their income. There
are 792 Welfare Micro-Entrepreneurs have managed to increase their income above
RM1,200.00 per month (Figure 1.3) at once out of the Sarawak Social Welfare
Department's (JKMS) monthly assistance list. This further illustrates JKMS responsibility
and challenges as the engine of implementing the B-40 socio-economic development
program to realize Sarawak's Socio-Economic.
27
Figure 1.3: Success Story Recognized by Sarawak Welfare Department
This study intends to increase comprehension of the normal approach that is utilized
by JKMS in helping individuals living in neediness to take part in miniaturized scale
business visionary, centering in province of Sarawak. Qualities of sort of business
included, request and supply approaches were evaluated to build up a system for
examination. This structure is then used to analyze the acts of JKMS concentrating on
Micro Entrepreneurship Development in neediness lightening.
The Sarawak Welfare Department stated that as of 2021 from 2013 they have aid
4,053 (table 1.4) with the amount of RM20,265,000.00 whereby each participant is
given a grant approximately RM5,000.00 per participant. Statistically only 19.54%
were graduate as success story in which they have achieved monthly income more
28
than the poverty line.
Figure 1.4: Total of UMK program participant from 2013 – 2021
1.3 Problem Statement
In the landscape of social welfare programs, initiatives to promote microenterprise,
such as the UMK program, hold great promise for poverty reduction and sustainable
socioeconomic development. These efforts aim to empower vulnerable communities
by promoting entrepreneurship, income generation, and self-sufficiency. Despite the
noble goals and potentially positive outcomes, there remains a significant knowledge
gap regarding the specific factors that lead to the success of micro-entrepreneurs who
participate in such programs. While previous research has examined a wide range of
29
factors that contribute to entrepreneurial success in a variety of contexts, the unique
dynamics of microenterprise success in social welfare programs have yet to be
adequately explored. In particular, there is a notable lack of evidence on the role and
importance of non-technical attributes, such as competitive aggressiveness,
proactivity, and risk-taking, in the success of microenterprises in welfare-oriented
contexts.
This research gap, particularly with respect to the relevance of these non-technical
attributes to the success of micro-entrepreneurs in the UMK program, warrants in-
depth investigation. A comprehensive study is needed to illuminate the intricate
nuances of success in this unique context. The objective of this study is to identify,
evaluate, and analyze the key success factors that drive innovation and overall
performance, while assessing the potential impact of non-technical attributes on
success outcomes. In addition, the study seeks to uncover identifiable demographic
patterns among program participants.
Addressing this research gap is of both theoretical and practical importance. From a
theoretical perspective, this study aims to improve the understanding of micro-
entrepreneurship in social welfare programs and uncover the complicated interplay of
success factors. From a practical perspective, the study's findings are useful for
developing strategies for program development and providing evidence-based insights
to policymakers and stakeholders. This alignment between research and practice
30
promises to direct action toward outcomes consistent with the overarching goals of
poverty reduction, socioeconomic empowerment, and sustainable growth.
This research embarks on an empirical journey to explore and illuminate the multiple
factors that contribute to the success of micro-entrepreneurs participating in the UMK
program. Through this exploration, the study aims to provide valuable insights that
will not only enrich the scholarly discourse, but also enable actionable strategies that
can promote the self-reliance and prosperity of micro-entrepreneurs within the context
of welfare-oriented initiatives.
Given Sarawak's poverty level, which is not consistent with Sarawak's contribution as
one of Malaysia's major sources of income, efforts to address this problem require
more organized planning and program implementation. One of the initiatives that has
begun to make a significant impact on Sarawak's population that falls below the
poverty line is the Launch Grant Program, which has been implemented by the
Sarawak Department of Social Services (JKMS) since 2009.
In order to increase the effectiveness of programs aimed at developing the skills of
groups dependent on the JKMS monthly welfare assistance, a comprehensive study of
these groups in terms of their readiness and challenges to engage in small businesses is
critical. Many programs run by the Sarawak Social Welfare Department for productive
welfare recipients. The recipients of this productive welfare assistance are those who
31
are still able to work and generate income to support their families or we also can
categorise as subgroups which do not have critical physical and mental capacity problems.
Therefore, it is important to see the effectiveness of this program and the factors that
can contribute to the success of this program. In addition, this study will identify the
factors to contribute the two main goals in the strategic role of developing Sarawak as a
high-income state in Malaysia that are to increase revenue and reduce the socioeconomic
gap.
Various studies have added to the idea that market direction is a vital driver of business
execution and different exploration endeavours keep on zeroing in on the connection
between the level of market direction and business execution (Narver & Slater, 1990).
Notwithstanding the significance of market direction to business achievement, efficient
requests to acquire a more profound comprehension of the market direction build started
genuinely just over the most recent twenty years, following the pioneering work of Kohli
and Jaworski (1990) and Narver and Slater (1990). Ensuing experimental studies have
endeavoured to evaluate the relationship of market direction with benefit (Bhuian, 1997;
Greenley and Foxall, 1995; Ruekert, 1992), piece of the pie (Deshpandé et al., 1993;
Pelham, 2000), new item achievement (Atuahene-Gima, 1995), and consumer loyalty
(Appiah-Adu, 1997) have added to the possibility that market heading is an essential driver
of business execution and different investigation tries continue to focus in on the
association between the degree of market bearing and business execution (Narver & Slater,
1990). Despite the meaning of market bearing to business accomplishment, proficient
solicitations to gain a more significant cognizance of the market heading construct began
really once again the latest twenty years, following the spearheading work of Kohli and
32
Jaworski (1990) and Narver and Slater (1990). Resulting exploratory assessments have
tried to assess the relationship of market course with benefit (Bhuian, 1997; Greenley and
Foxall, 1995; Ruekert, 1992), slice of the pie (Deshpandé et al., 1993; Pelham, 2000), new
thing accomplishment (Atuahene-Gima, 1995), and customer unwaveringness (Appiah-
Adu, 1997). A study by Chowdhury and Jahangir (2008) found that the microfinance
program doesn't advance business venture at the household level in Bangladesh, however
it assists with expanding the capital of currently settled organizations. Be that as it may,
some studies found that microfinance execution apparatuses miniature credit, miniature
reserve funds, ability improvement, business help have the huge relationship with business
venture advancement.
The measure of poverty must be accurate to reflect the true reality of poverty. This is
because it will provide a clear understanding related to poverty so that the policies that will
be formed are believed to be able to solve the poverty problem faced (Alkire & Foster
2011). In 1997, the Human Development Report and the 2000/1 World Development
Report stated that poverty is a multi-dimensional phenomenon. While the Millennium
Declaration and the MDGs began to discuss the issue of poverty in various dimensions
since 2000.What is basic is that, disregarding the way that there is plentiful exploration on
market heading, a huge part of the past studies have focused in basically on gathering
regions. As of late, a couple of studies have tried to support the market bearing model and
its scale in some assistance regions, as money related organizations (Bhuian, 1997),
clinical consideration organizations (Kumar et al., 1998), and compositional organizations
(Barksdale & Clopton, 1994). In any case, there are not many studies by researchers that
tend, in the correct sense, to recommend open market acceptance of products produced by
33
micro-entrepreneurs and encourage more advanced implementation for SMEs in Malaysia
or especially in the Sarawak environment. Wagle (2004) conducted a study in the United
States on the dimensions of poverty seen in terms of economic well-being; ability
(capability); and social. Meanwhile the social component is economic, political and
cultural/civic. Therefore, he saw the dimensions of poverty in these five dimensions. Next
he divided the status of poverty into the following four statuses. First, poor: poor if only
poor in terms of economic well-being or only poor in terms of ability or only poor in social
terms. Second, very poor; very poor if two of the 3 dimensions of poverty are poor. Third,
destitution (abject poor): Abject poor is when poor in terms of the three dimensions of
poverty. Fourth, not poor: not included in any of the poverty dimensions studied. In
addition, Wagle also describes the characteristics of poverty as follows; First, important
determinants of poverty are race, gender, nativity, household size, and marital status.
Second, blacks and Hispanics are the poorest, which is the highest percentage of poverty to
overall poverty. Third, the head of the family is a woman. Fourth, those born outside the
US. Fifth, large families with many children, however the percentage of poverty to overall
poverty is the lowest. Sixth, those who have never married and widows/widowers.
Asselin and Anh, (2010) conducted a study on poverty indicators in Vietnam. Among the
indicators/indicators used are unemployment, serious illness, adults who cannot read, write
and count (illiterate), children who do not go to school, no radio and TV, type of residence,
drinking water and sanitation/toilets. From these indicators, basic human capabilities can
be identified, namely; the ability to create income, the ability to get education and
communication and the ability to live healthy. In summary, this study explains the concept
of human poverty and physical poverty. However, Asselin and Anh found it quite difficult
34
to clearly describe socio-economic poverty without an aggregate measure of human
poverty and physical poverty. Therefore, they use composite indicators. To form a
composite indicator for the eight indicators, they used Multiple Correspondence Analysis
(MCA). This composite indicator is divided into two sub-indicators which are human
assets (jobs, pain, illiteracy, schooling) and physical assets (radio and tv, housing, drinking
water, toilets).
Geographically, the State of Sarawak has great privileges and potential to be developed
due to its strategic position in Southeast Asia and with a large land area, it is able to
continue to grow in terms of economic development. In terms of connectivity, Sarawak is
easily connected to major cities in the world with short travel times, such as Hong Kong,
Japan, Australia, Indonesia, Singapore and Brunei. With its strategic position, which is in
the middle of the Asia-Pacific region, Sarawak has the potential to become a competitive
investment centre.
1.4 Research Questions
Following the research problem, the following questions need to be answered to see the
effectiveness of the financing towards the productive welfare assistance:
I.4.1 What are the demographic patterns of UMK participants under the Welfare
Department?
I.4.2 What non-technical factors contribute to the success of UMK in achieving
35
the welfare department's targets?
I.4.3 What is the relationship between selected variables (such as entrepreneurial
capabilities, financial planning, marketing strategies, innovativeness, and
risk-taking) and the overall success of UMK participants?
1.5 Research Objective
The general objective of this study is to see the business success factors of UMK. This is to
investigate how UMK program help to alleviate the livelihood of those entrepreneurs and
the specific objectives are:
1.5.1 Analyze the demographic patterns of UMK participants under the welfare
department;
1.5.2 Identify the non-technical factors that contribute to the success of UMK in
achieving the welfare department's targets; and
1.5.3 Examine the relationship between selected variables (such as entrepreneurial
capabilities, financial planning, marketing strategies, innovativeness, and risk-
taking) and the overall success of UMK participants.
1.6 Research Hypothesis
1.6.1 Hypothesis 1
Null Hypothesis (H0): There is no significant relationship between the demographic
patterns (age, gender, educational background, socioeconomic status) of UMK participants
and their participation in the welfare department's UMK program.
36
Alternative Hypothesis (Ha): There is a significant relationship between the demographic
patterns (age, gender, educational background, socioeconomic status) of UMK participants
and their participation in the welfare department's UMK program.
1.6.2 Hypothesis 2
Null Hypothesis (H0): There is no significant association between non-technical factors
(e.g., personal attributes, entrepreneurial qualities, financial resources, social networks, and
government support) and the success of UMKs in achieving the welfare department's
targets.
Alternative Hypothesis (Ha): There is a significant association between non-technical
factors (e.g., personal attributes, entrepreneurial qualities, financial resources, social
networks, and government support) and the success of UMKs in achieving the welfare
department's targets.
1.6.3 Hypothesis 3
Null Hypothesis (H0): There is no significant relationship between the selected variables
(entrepreneurial capabilities, financial planning, marketing strategies, innovativeness, and
risk-taking) and the overall success of UMK participants in the UMK program.
37
Alternative Hypothesis (Ha): There is a significant relationship between the selected
variables (entrepreneurial capabilities, financial planning, marketing strategies,
innovativeness, and risk-taking) and the overall success of UMK participants in the UMK
program.
1.7 Significance of the study
The significance of this study is multifaceted, encompassing theoretical, practical, societal,
and research contributions. It is designed to provide a comprehensive understanding of the
UMK program's impact on poverty alleviation and entrepreneurial development among the
poorest segments of society. This understanding can inform policymakers, enhance
program effectiveness, and contribute to broader socio-economic development goals.
Theoretical Significance
On a theoretical level, this study contributes to the growing body of knowledge about
microenterprise within social welfare programs. By examining the multifaceted success
factors unique to this context, the study advances theoretical discourse on entrepreneurship
and poverty alleviation. The insights gained from this study enrich our understanding of
how micro-entrepreneurs thrive under welfare state initiatives and shed light on the
intricate mechanisms underlying their success. This includes an exploration of the
Resource-Based View (RBV), Social Capital Theory, and the Theory of Planned Behavior
(TPB) as they relate to the entrepreneurial journey of welfare recipients.
38
1. Resource-Based View (RBV): The RBV emphasizes the importance of resources
and capabilities in achieving competitive advantage. As Penrose (1959) and
Wernerfelt (1984) assert, resource accumulation and strategic resource management
are essential for entrepreneurial growth and sustainability. For welfare micro-
entrepreneurs, accessing and utilizing resources such as financial capital, human
capital, and social capital is crucial for achieving business success (Barney, 1991;
Alvarez & Busenitz, 2001).
2. Social Capital Theory: Social networks and relationships play a significant role in
facilitating entrepreneurial success. Trust, norms, and networks foster cooperation
and resource exchange among individuals, which are vital for welfare micro-
entrepreneurs operating in resource-constrained environments (Bourdieu, 1986;
Coleman, 1988; Putnam, 1993). Social capital provides access to information,
financial resources, and market opportunities, enhancing business performance
(Nahapiet & Ghoshal, 1998; Lin, 1999).
3. Theory of Planned Behavior (TPB): TPB posits that individual behavior is driven
by behavioral intentions, influenced by attitudes, subjective norms, and perceived
behavioral control (Ajzen, 1991). For welfare micro-entrepreneurs, understanding
these factors can help in designing interventions that enhance entrepreneurial
intentions and actions, thereby increasing the likelihood of business success.
39
Practical Relevance
In practice, the findings of this study have immediate implications for policymakers,
program designers, and stakeholders involved in microenterprise and social welfare
initiatives. The identification and assessment of key success factors, including financial
planning, innovation capacity, and marketing strategy, provide actionable insights for
optimizing the design and implementation of the UMK program.
1. Financial Management: Effective financial management practices are crucial for
micro-entrepreneurs to ensure profitability and sustainability (Eisenhardt & Martin,
2000). Understanding the importance of financial planning can help welfare
recipients manage their resources better, leading to more successful business
outcomes.
2. Marketing Strategies: Robust marketing strategies help participants understand
and penetrate their target markets, which is essential for business growth and
development (Greenley & Foxall, 1995; Atuahene-Gima, 1995). Tailoring
marketing efforts to the unique needs of welfare micro-entrepreneurs can
significantly enhance their market presence and profitability.
3. Program Support: Continuous mentoring, peer networks, and follow-up training
sessions are essential for reinforcing the skills and knowledge gained during initial
training (Portes, 1998; Uzzi, 1997). The role of program support in fostering a
conducive environment for entrepreneurship cannot be overstated.
40
Societal Impact
The societal impact of this study is profound, as the success of micro-entrepreneurs
directly affects their communities and the economy as a whole. By providing evidence-
based recommendations for program improvement, this study contributes to the overall
goal of reducing poverty and promoting self-reliance.
1. Community Development: Successful micro-entrepreneurs contribute to local
economic growth, job creation, and community development. This ripple effect can
lead to more vibrant and economically stable communities, reducing overall
dependency on welfare programs (Granovetter, 1985).
2. Role Models and Catalysts: Successful micro-entrepreneurs serve as role models
and catalysts for further entrepreneurial activities within their communities,
fostering a culture of innovation and self-reliance (Zimmerman, 2000; Lyons,
Smuts & Stephens, 2001).
Contribution to Research and Knowledge
This study contributes to the academic landscape by addressing the nuanced context of
micro-entrepreneurship within social welfare programs. By comprehensively examining
the factors that influence success, both technical and non-technical, the study provides a
holistic understanding of the entrepreneurial journey in such a unique setting. The
methodological rigor ensures that the findings are robust and reliable, offering a solid
foundation for future research in this area.
41
1. Empirical Insights: The use of Partial Least Squares Structural Equation Modeling
(PLS-SEM) and bootstrapping techniques demonstrates the application of rigorous
research methods to real-world circumstances, advancing research methods in the
field.
2. Policy Implications: The findings can guide the allocation of resources, the design
of training programs, and the development of support mechanisms that enhance the
overall efficacy of the UMK program. These insights can be instrumental in
shaping policies that promote sustainable economic development and poverty
reduction.
By bridging the gap between theory and practice, this empirical study advances the
discourse on poverty reduction, micro-entrepreneurship, and socio-economic
empowerment. Ultimately, the research underscores the importance of fostering an
enabling environment for micro-business growth and highlights the UMK program's
potential to drive positive change within Sarawak's welfare recipients and their
communities.
1.8 Organisation Of Study
Chapter 1: Introduction
This chapter provides an overview of the research, including the background of the study,
problem statement, research questions, objectives, hypotheses, significance of the study,
and the organization of the chapters.
42
Chapter 2: Literature Review
This chapter presents a detailed review of the theoretical frameworks, empirical studies,
and identification of literature gaps related to the business success factors of welfare micro-
entrepreneurs. The theoretical review includes explanations of the Resource-Based View
(RBV), Social Capital Theory, and the Theory of Planned Behavior (TPB), supported by
literature evidence. The empirical literature focuses on dependent and independent
variables, with detailed discussions and multiple citations per section.
Chapter 3: Methodology
This chapter describes the research design, population and sampling techniques, instrument
development, data collection procedures, data analysis methods, and ethical considerations.
The methodology outlines the approach used to gather and analyze data to answer the
research questions and test the hypotheses.
Chapter 4: Findings and Discussions
This chapter presents the results of the data analysis, including descriptive statistics,
inferential statistics, and discussions on the findings in relation to the research questions
and hypotheses. The findings provide insights into the demographic patterns of UMK
participants, the role of non-technical factors in entrepreneurial success, and the
relationship between selected variables and overall success.
43
Chapter 5: Discussion and Conclusion
This chapter provides a summary of the findings, discussions on the implications for theory
and practice, recommendations for policymakers and practitioners, suggestions for future
research, and the overall conclusions of the study. The chapter highlights the significance
of the findings and offers practical and theoretical contributions to the field of micro-
entrepreneurship and poverty alleviation.
This structured organization ensures a logical flow of information, guiding the reader
through the research process from the initial problem identification to the final conclusions
and recommendation
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CHAPTER 2
LITERATURE REVIEW
2.1 Introduction
This chapter aims to provide a comprehensive review of the literature relevant to the
business success factors of welfare micro-entrepreneurs. It is structured into three main
sections: the theoretical review, empirical studies, and the identification of literature gaps.
The theoretical review includes explanations of the Resource-Based View (RBV), Social
Capital Theory, and the Theory of Planned Behavior (TPB), supported by literature
evidence. The empirical literature focuses on dependent and independent variables, with
detailed discussions and multiple citations per section. Finally, the literature gaps are
identified with supporting citations.
2.2 Theoretical Review
The UMK programs were introduced as a means of poverty alleviation, requiring a deep
understanding of deprivation to formulate effective solutions in Sarawak under the Welfare
Department. Over the years, the concept of poverty has evolved from mere hunger or
malnutrition to a broader range of factors that include lack of income, property, basic
rights, access to services, and social safety nets (Bass et al., 2005).
According to Townsend (1979), poverty arises from a lack of resources to meet basic needs
and limited participation in essential social activities and community services. Sen (1986)
emphasizes that poverty is not only about material scarcity but also about limited access to
basic needs, dignity, and a life without shame. Poverty is intrinsically linked to inequality
45
and includes inequalities in resources, opportunities, assets, income, wealth, and social
relationships (Ridge & Wright, 2008). To effectively address poverty, both the internal and
external factors that affect individuals and communities must be considered.
Bass et al. (2005) identified eight aspects of poverty, including inadequate and unstable
income, assets, housing, public infrastructure, basic services, safety nets, protection of
rights, and lack of voice in the political system. Addressing these issues requires a holistic
approach that includes good governance and collaboration between government institutions
and civil society organizations. The relationship between access to capital and
entrepreneurship has been studied by Jovanovic (Evans & Jovanovic, 1989), highlighting
the positive relationship between financial security and the likelihood of starting a
business. Individuals with sufficient capital are more likely to run efficient businesses and
generate higher returns.
Asset-based approaches to poverty reduction, as suggested by Lohmer (2008), help
individuals lift themselves out of poverty by enabling them to overcome unforeseen
challenges and build stable lives. Building assets leads to increased wealth, education,
economic participation, and better health, contributing to household security (Lombe &
Sherraden, 2005; Paxton, 2001, as cited in Cabraal et al., 2006). To reduce poverty,
savings, financial education, micro-investment, and social safety nets must be integrated
into poverty reduction programs.
Schumpeter (1934) defines an entrepreneur as someone who creates new combinations,
takes risks, explores market opportunities, and runs a business. Asfaw (2016) adds that
46
entrepreneurial sustainability includes the progress and longevity of a business.
Zimmerman (2000) emphasizes the importance of choice, decision-making, and control in
empowering individuals, while Lyons, Smuts, and Stephens (2001) highlight the role of
skills and abilities acquired through empowerment projects. Malhotra and Schuler (2005)
and Kabeer (1999) focus on various dimensions and indicators of empowerment relevant to
sustainable entrepreneurship.
2.2.1 Resource-Based View (RBV)
The Resource-Based View (RBV) theory posits that the resources and capabilities of an
organization are crucial for achieving competitive advantage and superior performance.
According to Barney (1991), resources that are valuable, rare, inimitable, and non-
substitutable (VRIN) form the basis of sustained competitive advantage. For welfare
micro-entrepreneurs, the RBV emphasizes the importance of accessing and utilizing
resources such as financial capital, human capital, and social capital to achieve business
success. Penrose (1959) and Wernerfelt (1984) further assert that resource accumulation
and strategic resource management are essential for entrepreneurial growth and
sustainability.
The RBV theory is supported by various studies. For instance, Alvarez and Busenitz
(2001) argue that entrepreneurial capabilities, including the ability to identify opportunities
and mobilize resources, are critical for venture success. This view is corroborated by
Eisenhardt and Martin (2000), who emphasize that dynamic capabilities, such as the ability
to reconfigure resources in response to changing market conditions, are vital for
47
maintaining competitive advantage. For welfare micro-entrepreneurs, this means
leveraging available resources effectively to navigate the challenges of the business
environment and capitalize on opportunities for growth.
2.2.2 Social Capital Theory
Social Capital Theory highlights the role of social networks and relationships in facilitating
entrepreneurial success. Bourdieu (1986) defines social capital as the aggregate of actual or
potential resources linked to a durable network of relationships. Coleman (1988) and
Putnam (1993) emphasize the importance of trust, norms, and networks in fostering
cooperation and resource exchange among individuals. For welfare micro-entrepreneurs,
social capital provides access to information, financial resources, and market opportunities,
thereby enhancing business performance (Nahapiet & Ghoshal, 1998; Lin, 1999).
Social capital is particularly crucial for welfare micro-entrepreneurs, who often operate in
resource-constrained environments. Studies by Portes (1998) and Adler and Kwon (2002)
highlight that social capital can compensate for the lack of financial and human capital by
providing access to networks that offer support, advice, and resources. For example, Uzzi
(1997) found that embeddedness in social networks enhances trust and cooperation,
leading to better business outcomes. Similarly, Granovetter (1985) argues that social ties
facilitate economic action by embedding it in social networks, which provide support and
reduce transaction costs.
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2.2.3 Theory of Planned Behavior (TPB)
The Theory of Planned Behavior (TPB), developed by Ajzen (1991), posits that individual
behavior is driven by behavioral intentions, which are influenced by attitudes, subjective
norms, and perceived behavioral control. For welfare micro-entrepreneurs, TPB helps to
understand how their intentions and motivations influence their entrepreneurial actions and
success. Kolvereid and Isaksen (2006) and Krueger et al. (2000) suggest that positive
attitudes towards entrepreneurship, supportive social norms, and a high level of perceived
control can significantly enhance entrepreneurial outcomes.
TPB is particularly relevant for understanding the entrepreneurial intentions of welfare
recipients. According to Liñán and Chen (2009), entrepreneurial intentions are a strong
predictor of entrepreneurial behavior. Studies by Shapero and Sokol (1982) and Autio et al.
(2001) support this view, suggesting that the intention to start a business is influenced by
perceived desirability and feasibility. For welfare micro-entrepreneurs, fostering positive
attitudes towards entrepreneurship and enhancing perceived control can increase the
likelihood of business success.
2.2.4 The Importance of Business Performance for Successful Entrepreneurs
Business performance is crucial for several reasons, including profitability, sustainability,
reputation, credibility, attracting investment, talent retention, competitive advantage,
adaptability, resilience, customer satisfaction, innovation, growth, and social impact. A
49
successful entrepreneur must ensure that their business is profitable and sustainable in the
long run. Positive business performance allows for growth, reinvestment, and resilience
against economic downturns. Additionally, strong performance enhances reputation,
attracts investment, and helps build a motivated team.
According to Bass et al. (2005), business performance is directly influenced by the ability
to manage resources effectively. This includes financial resources, human resources, and
physical resources. Entrepreneurs who can optimize these resources are more likely to
achieve and sustain business success. Financial performance, in particular, is a key
indicator of business health and longevity. It encompasses revenue growth, profit margins,
cost control, and efficient capital management.
2.2.5 The impact of Innovativeness on Entrepreneurial Success
Innovativeness plays a critical role in entrepreneurial success. It helps identify market
opportunities, gain a competitive advantage, adapt to changes, solve problems creatively,
attract investment, build strong teams, continuously improve, expand market reach,
enhance brand reputation, and future-proof businesses. Innovative entrepreneurs are better
positioned to offer unique and differentiated products or services, making it easier to attract
and retain customers.
Innovativeness also drives business growth by fostering a culture of continuous
improvement and adaptation. According to Schumpeter (1934), innovation is the driving
force behind economic development and business success. Entrepreneurs who prioritize
50
innovation are more likely to introduce new products, services, and processes that meet
changing market demands. This proactive approach enables businesses to stay ahead of
competitors and respond effectively to market disruptions.
2.2.6 The Role of Proactivity in Driving Entrepreneurial Success
Proactivity involves taking initiative, being forward-thinking, and actively addressing
challenges and opportunities. Proactive entrepreneurs are better equipped to anticipate
changes, seize opportunities, and respond effectively to market dynamics. This trait
significantly influences entrepreneurial success by fostering a proactive approach to
problem-solving and strategic planning.
Proactive entrepreneurs are characterized by their ability to foresee potential challenges
and take pre-emptive measures to mitigate risks. This forward-thinking mindset allows
them to capitalize on emerging trends and navigate uncertainties with confidence.
According to Lyons et al. (2001), proactivity is a critical component of entrepreneurial
success, as it drives innovation, enhances competitiveness, and supports sustainable
growth.
2.2.7 The Significance of Risk-Taking
Risk-taking is a fundamental characteristic of successful entrepreneurs. It involves the
willingness to take calculated risks and seize opportunities that align with the business
vision. While risk-taking can lead to significant rewards, it also involves the possibility of
51
failure. Successful entrepreneurs view failure as a learning opportunity and are resilient in
the face of setbacks.
Risk-taking is essential for business innovation and growth. According to Schumpeter
(1934), entrepreneurs must be willing to embrace uncertainty and take bold actions to
achieve competitive advantage. This involves exploring new markets, investing in
innovative technologies, and pursuing unconventional business strategies. Entrepreneurs
who can effectively manage risks are more likely to achieve long-term success and
sustainability.
2.2.8 The Complex Influence of Competitive Aggressiveness
Competitive aggressiveness involves the willingness to challenge competitors directly and
assertively. This trait can drive entrepreneurial success by pushing businesses to innovate,
improve, and outperform rivals. However, it must be balanced with strategic planning and
risk management to ensure sustainable growth.
Competitive aggressiveness can lead to increased market share and business growth.
According to Bass et al. (2005), businesses that adopt aggressive competitive strategies are
more likely to achieve higher levels of performance and profitability. However, it is
important for entrepreneurs to balance aggressiveness with ethical considerations and long-
term sustainability goals.
52
2.2.9 Financial Planning
Financial planning is crucial for setting clear goals, managing budgets and cash flow,
allocating capital, mitigating risks, making funding decisions, optimizing tax strategies,
making informed decisions, ensuring long-term sustainability, protecting personal financial
security, and measuring performance. Effective financial planning helps entrepreneurs
navigate financial challenges and achieve long-term success.
According to Evans and Jovanovic (1989), access to financial resources is a key
determinant of entrepreneurial success. Entrepreneurs who engage in comprehensive
financial planning are better equipped to manage their finances, allocate resources
effectively, and achieve business goals. Financial planning also enables entrepreneurs to
anticipate and address potential financial challenges, ensuring business continuity and
growth.
2.2.10 The Power of Effective Marketing Strategies
Effective marketing strategies are vital for reaching and engaging target customers,
building brand awareness, driving sales, and fostering customer loyalty. Marketing
strategies should be tailored to the unique needs of the business and its target market,
leveraging various channels and tactics to maximize impact.
Marketing is a critical component of business success. According to Paxton (2001),
effective marketing strategies enable businesses to communicate their value proposition,
differentiate themselves from competitors, and build strong customer relationships.
53
Entrepreneurs who prioritize marketing are more likely to achieve higher levels of brand
recognition, customer loyalty, and business growth.
2.2.11 The Role of Product Production and Quality in Entrepreneurial Success
High-quality product production is essential for satisfying customer needs, building brand
reputation, and achieving business success. Entrepreneurs must focus on maintaining
consistent quality, optimizing production processes, and meeting market demands to
ensure their products stand out in a competitive marketplace.
Product quality is a key driver of customer satisfaction and business success. According to
Lombe and Sherraden (2005), businesses that consistently deliver high-quality products are
more likely to build strong customer relationships and achieve long-term success.
Entrepreneurs who invest in quality management and production optimization are better
positioned to meet market demands and drive business growth.
54
2.3 Related Empirical Studies
2.3.1 Financial Management
Financial management is essential for the success of micro-entrepreneurs. Proper financial
planning and management help in setting clear goals, managing budgets, allocating capital,
and making informed decisions. Evans and Jovanovic (1989) highlight the importance of
access to financial resources as a determinant of entrepreneurial success. Studies show that
entrepreneurs who engage in comprehensive financial planning are better equipped to
manage their finances, anticipate challenges, and achieve business continuity and growth
(Bass et al., 2005).
2.3.2 Marketing Strategies
Effective marketing strategies are critical for reaching and engaging target customers,
building brand awareness, and driving sales. Greenley and Foxall (1995) and Atuahene-
Gima (1995) suggest that robust marketing strategies tailored to the unique needs of
welfare micro-entrepreneurs can significantly enhance market presence and profitability.
Entrepreneurs who prioritize marketing achieve higher levels of brand recognition and
customer loyalty, which are essential for business growth (Paxton, 2001).
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2.3.3 Business Planning
Business planning involves outlining business goals, strategies, and actions to achieve
success. It includes setting objectives, identifying resources, and determining the necessary
steps to reach these goals. Studies by Lombe and Sherraden (2005) emphasize that
comprehensive business planning enables entrepreneurs to navigate challenges, optimize
resources, and achieve long-term sustainability. The ability to anticipate and adapt to
market changes through effective planning is crucial for the success of micro-
entrepreneurs.
2.3.4 Program Support
Continuous program support through mentoring, peer networks, and follow-up training
sessions is vital for reinforcing the skills and knowledge gained during initial training
(Portes, 1998; Uzzi, 1997). Such support provides a conducive environment for
entrepreneurship, enhancing the ability of micro-entrepreneurs to sustain and grow their
businesses. Effective program support structures ensure that entrepreneurs receive ongoing
guidance, access to resources, and opportunities for collaboration.
2.3.5 Innovativeness
Innovativeness refers to the ability to introduce new ideas, products, or processes in
business. Schumpeter (1934) defines an entrepreneur as someone who creates new
56
combinations and explores market opportunities. Studies by Mahemba and De Bruijn
(2003) show that innovation activities positively impact the performance of small and
medium-sized enterprises. For welfare micro-entrepreneurs, fostering an innovative
mindset can lead to competitive advantages and business growth.
2.3.6 Risk-Taking
Risk-taking is an essential trait for entrepreneurs, involving the willingness to take
calculated risks to achieve business goals. Research by Lyons et al. (2001) indicates that
entrepreneurs who are willing to take risks are more likely to succeed. Encouraging risk-
taking among micro-entrepreneurs can drive innovation and business expansion. However,
it is important to balance risk-taking with risk management strategies to mitigate potential
downsides.
2.3.7 Proactivity
Proactivity involves taking initiative and anticipating future challenges and opportunities.
It is a critical success factor for entrepreneurs, enabling them to stay ahead of market
trends and respond effectively to changes. Studies by Crant (2000) suggest that proactive
entrepreneurs are better positioned to identify opportunities, mobilize resources, and
achieve business success. For welfare micro-entrepreneurs, fostering proactivity can
enhance their ability to adapt and thrive in dynamic market conditions.
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2.3.8 Competitive Aggressiveness
Competitive aggressiveness refers to the intensity of an entrepreneur's efforts to
outperform competitors. Research by Lumpkin and Dess (2001) shows that competitive
aggressiveness is associated with higher business performance. Entrepreneurs who adopt
aggressive competitive strategies are more likely to achieve market leadership and
sustained growth. For welfare micro-entrepreneurs, balancing competitive aggressiveness
with ethical business practices is crucial for long-term success.
2.4 Research Gap
While existing studies provide valuable insights into the factors influencing the success of
micro-entrepreneurs, there is a notable gap in the literature concerning welfare-oriented
entrepreneurship programs, particularly in the context of Sarawak, Malaysia. Most studies
focus on general entrepreneurship without addressing the unique challenges faced by
welfare recipients transitioning to micro-entrepreneurship. Additionally, there is limited
research on the long-term impact of such programs on participants' socio-economic status
and business sustainability.
Additional Research Needed
Future research should aim to fill these gaps by conducting longitudinal studies that track
the progress and success of welfare micro-entrepreneurs over time. Such studies can
58
provide deeper insights into the sustained impact of various success factors and program
interventions. Furthermore, incorporating qualitative data through interviews or focus
group discussions can offer a more nuanced understanding of the experiences and
perspectives of welfare micro-entrepreneurs.
Research should also explore the role of psychological factors such as entrepreneurial
mindset, motivation, and resilience in determining the success of welfare micro-
entrepreneurs. Understanding these factors can help design targeted interventions to
enhance entrepreneurial outcomes. Additionally, investigating the impact of technological
adoption on business success is crucial, as digital technologies and e-commerce platforms
can significantly influence performance and growth.
Comparative studies across different welfare programs and cultural contexts are
recommended to identify common success factors and program-specific influences. Such
studies can offer a broader perspective on effective strategies for supporting welfare micro-
entrepreneurs and contribute to the generalizability of the findings.
Addressing these research gaps is of both theoretical and practical importance.
Theoretically, it enhances the understanding of micro-entrepreneurship in welfare contexts
and uncovers the intricate interplay of success factors. Practically, the findings can inform
the development of strategies for program improvement and provide evidence-based
59
insights to policymakers and stakeholders, ultimately contributing to poverty reduction,
economic empowerment, and sustainable growth.
Studies by Narver and Slater (1990), as well as Kohli and Jaworski (1990), emphasize the
importance of market orientation in driving business success. These findings align with the
need for welfare micro-entrepreneurs to adopt market-oriented strategies to enhance their
competitiveness and performance. Additionally, research by Chowdhury and Jahangir
(2008) highlights the role of microfinance programs in supporting established businesses,
suggesting that similar support structures can benefit welfare micro-entrepreneurs by
providing financial stability and growth opportunities.
Overall, bridging these research gaps will provide a more comprehensive understanding of
the factors contributing to the success of welfare micro-entrepreneurs, thereby informing
the design of more effective programs and policies.
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CHAPTER 3
METHODOLOGY
3.1 Introduction
The methodology chapter is crucial as it lays out the systematic approach undertaken to
investigate the business success factors of welfare micro-entrepreneurs participating in the
Usahawan Mikro Kebajikan (UMK) program in Sarawak. This chapter provides a detailed
explanation of the research design, population and sampling techniques, instrument
development, data collection procedures, and data analysis methods. Additionally, ethical
considerations observed during the research are discussed.
This study employs a quantitative research design, which is appropriate for assessing the
current status of UMK recipients and examining the relationships between various factors
influencing entrepreneurial success. Quantitative research allows for the collection and
analysis of numerical data, providing a clear and objective basis for understanding the
impact of different variables on the success of micro-entrepreneurs.
A similar approach was taken by Asselin and Anh (2010) in their study on poverty
indicators in Vietnam. They used quantitative methods to identify key factors affecting
economic well-being and applied these insights to develop targeted interventions. In the
context of this study, a quantitative approach enables a rigorous examination of the UMK
61
program's effectiveness and provides valuable data to inform policy and programmatic
improvements.
The population for this study consists of all UMK recipients in Sarawak, as reported by the
Sarawak Department of Social Welfare (JKMS). A stratified random sampling technique is
used to ensure that different subgroups within the population are adequately represented.
This method enhances the reliability and validity of the findings by capturing a diverse
range of experiences and outcomes among UMK participants.
Instrument development involves the creation of a structured questionnaire designed to
collect data on various aspects of entrepreneurship and economic empowerment. The
questionnaire is pre-tested and refined based on feedback from a pilot study to ensure its
reliability and validity. This process is crucial for obtaining accurate and meaningful data
that can be effectively analyzed to draw valid conclusions.
Data collection is carried out through face-to-face interviews and online surveys,
accommodating the preferences and accessibility of participants. This dual approach
ensures comprehensive data collection and allows for a detailed examination of
participants' experiences and perspectives related to the UMK program.
Quantitative data collected through the survey are analyzed using Partial Least Squares
Structural Equation Modeling (PLS-SEM). This robust statistical tool is suitable for
62
evaluating complex models with latent variables and is used to assess the relationships
between various entrepreneurial and business factors and the overall success of UMK
participants.
Ethical considerations are meticulously observed throughout the research process.
Participants' responses are treated with confidentiality, and all identifiable information is
anonymized to protect their privacy. Informed consent is obtained from all participants,
and the study is conducted in accordance with established research ethics guidelines.
By employing a rigorous methodological framework, this study aims to provide valuable
insights into the factors that contribute to the success of welfare micro-entrepreneurs in
Sarawak. The findings will offer practical and theoretical contributions to the field of
micro-entrepreneurship and poverty alleviation, guiding future policy and program
improvements.
A relevant example can be drawn from the study by Asselin and Anh (2010), which
identified key poverty indicators in Vietnam through a structured methodological
approach, providing a foundation for targeted poverty reduction interventions. Similarly,
this study aims to identify critical success factors for UMK participants, thereby informing
effective strategies for enhancing the program's impact on poverty alleviation and
economic development in Sarawak.
63
Every entrepreneur who is successful in business has his own Critical Success Factor.
Table 3.1 shows a summary of Key Success Factor results from reference materials and
other sources to facilitate reading and review. The key factors include both personal
attributes and business-related elements.
Research by Hisrich, Peters, and Shepherd (2017) in their book "Entrepreneurship"
highlights that willingness to take risks, a strong interest in business, the ability to act
quickly in changing strategy, and not being afraid to face competitors are crucial for
entrepreneurial success. Additionally, Zimmerman and Chu (2010) emphasize the
importance of self-belief, not being easily discouraged, and having high skills in the
chosen field as significant personal attributes.
Further, Lussier and Pfeifer (2001) identify essential business factors such as business
location, types of customers, relationships with customers, suppliers, and competitors, and
the use of record-keeping systems. Their research underscores that ever attending a course
and the willingness to continue attending courses are also vital for business success.
Moreover, Stokes and Wilson (2010) discuss the importance of skills in management and
the ability to be independent, while Scarborough (2016) points out the need for
specialization in work and high-level skills in the field. Storey (1994) also stresses the
64
importance of maintaining good relationships with customers and suppliers to ensure
business success.
These references collectively provide a comprehensive overview of the factors that
contribute to the success of entrepreneurs and their businesses, as summarized in Table 3.1.
Table 3.1 : Summary of Key Success Factor

Entrepreneur Factor Business Factor
 Willingness to take risks  Business location

 Interest in business  Customer type
 Act quickly in changing  Relationship with customers
strategy  Relationship with suppliers
 Not afraid to face competitors  Relationship with competitors
 Skills in management  Use of record system
 Ability to be independent  Ever attended a course
 Believe in yourself  Willingness to attend the course
 Not easily discouraged
 Make specialization in work
 High skills in the field
ventured into
The research design adopted for this study aimed to achieve the general objective of
investigating the impact of the UMK Program on the economic empowerment UMK
in Sarawak. The research question addressed the factors contributing to the success or
failure of UMK recipients in becoming entrepreneurs, considering various
demographic backgrounds and circumstances.
To conduct the study in an organized manner, this research followed a systematic
process flow, as depicted in Figure 3.1. The initial step involved collecting relevant
65
data on the research topic from written sources such as books, journals, past studies,
magazines, and websites. The comprehensive literature review was essential to
identify and encompass the key variables relevant to the impact of the UMK Program
on economic empowerment.
Objectives, Scope and Aim of the

Literature Review Study, Problem Statement, Hypothesis
Design
Pilot Survey Secondary and Primary Data Collection
Data Analysis
Conclusion and Recommendation Final Report
Figure 3.1: Research Design
The research design utilized a quantitative approach with the survey method, enabling
the researcher to gather data from a diverse population of UMK recipients in Sarawak.
66
The population in this study comprised recipients participating in the UMK Program
in JKM Sarawak across 12 divisions. To ensure adequate representation and capture
variations in experiences, purposive random sampling was employed, forming separate
subgroups based on the recipients' outcomes, whether successful, still under
supervision or unsuccessful entrepreneurs. This sampling technique allowed for an in-
depth analysis of the program's impact on different groups of recipients.
In Chapter 4, the analysis results delved into the success factors of entrepreneurs, as
identified from the literature review and other relevant sources. The study explored
both individual and business-related factors that contribute to the economic
empowerment of UMK recipients, including single mothers and other participants.
These success factors provided valuable insights into the traits and strategies that lead
to positive outcomes in entrepreneurship, contributing to the broader understanding of
economic empowerment.
The research hypotheses tested in the study examined the relationship between the
UMK Program and the economic empowerment of recipients, considering the
diversity within the participant group. By analyzing data related to various
demographic backgrounds and circumstances, the study aimed to determine whether
the UMK Program had a significant positive effect on the economic well-being of the
participants.
67
Given the significance of the study, its findings could have implications for a wide range of
individuals, including single mothers and other participants, who seek to improve their
economic prospects through entrepreneurship. By assessing the program's effectiveness
and identifying success factors, the research offers valuable insights to policymakers,
government agencies, and stakeholders involved in designing and implementing similar
empowerment initiatives.
After identifying the variables relevant to the study, the next step involved formulating
several hypotheses. A hypothesis represents the researcher's expectation regarding the
outcome of a particular problem or research question (Uma Sekaran, 1992). These
hypotheses were developed based on insights gained from the comprehensive literature
review conducted in Chapter 2 and observations made during the research process. The
hypothesis testing aimed to provide valuable data and insights to address the research
question effectively.
Figure 3.1 illustrates the theoretical framework employed in this study, which draws upon
the findings from the literature review in Chapter 2. According to this framework, the
innovation performance and business performance of UMK participants in the program is
influenced by six main factors. These factors encompass a range of individual traits and
business-related aspects that may contribute to the economic empowerment of UMK
recipients in Sarawak.
68
Table 3.1, as mentioned earlier, presents a summary of the key success factors derived
from the literature review and other credible sources for both entrepreneur and business
factors. These success factors provide a basis for understanding the variables that influence
the performance and economic success of UMK participants in the program.
By testing these hypotheses and analysing the data obtained through the survey method,
the study aimed to validate the impact of entrepreneur and business factors on the
economic empowerment outcomes of the UMK Program participants. The findings from
the hypothesis testing process would play a crucial role in fulfilling the research objectives
and enhancing the overall understanding of the program's effectiveness.
The theoretical framework and success factors presented in Table 3.1 serve as essential
tools in guiding the analysis of the research data. The framework provided a structured
approach to studying the complex interplay between individual attributes and business-
related aspects in determining the economic outcomes of the UMK Program participant.
69
Figure 3.2: Conceptual Framework
70
3.2 Research Design
The study employed a cross-sectional research design, collecting data at a single point in
time to assess the current status of UMK recipients and the impact of the program on their
economic empowerment. This design is appropriate for examining the relationships
between various factors influencing entrepreneurial success, such as risk-taking,
innovativeness, proactivity, financial planning, marketing strategies, and product quality.
These factors were identified based on the literature review conducted in Chapter 2 .
3.3 Population And Sampling Technique
3.3.1 Population
The population for this study comprises all UMK recipients in Sarawak, as reported by the
Sarawak Department of Social Welfare (JKMS) in 2021. According to JKMS statistics,
there are a total of 4,053 UMK recipients across the state. For the purpose of this study, the
focus is on recipients who participated in the UMK program in JKM Sarawak and still
have contact with the UMK Program coordinator, covering all 12 divisions. Among these
recipients, 792 were classified as successful, while 3,261 were classified as still under
UMK Program supervision and unsuccessful based on JKMS criteria.
3.3.2 Sampling Technique
To ensure the representativeness of the sample and the reliability of the findings, a
stratified random sampling technique was employed. This technique involves dividing the
population into homogeneous subgroups (strata) based on specific characteristics such as
71
age, gender, and type of business, and then randomly selecting samples from each stratum.
This method helps in achieving a more accurate representation of the diverse
characteristics within the population.
Sample Calculation
The sample size for this study was determined using G*Power software, which is a widely
used tool for statistical power analysis. The minimum sample size needed to ensure
statistical significance and power was calculated to be 160 participants. This calculation
took into account the effect size, significance level, and desired power of the study.
To ensure the robustness and reliability of the results, a testable sample size of 166
participants was drawn from the total population. This slight increase over the minimum
requirement helps account for any potential non-responses or incomplete data.
The parameters used in G*Power for the sample size calculation are as follows:
 Effect Size (f²): 0.15 (medium effect size)
 Significance Level (α): 0.05
 Power (1-β): 0.95
Based on these parameters, the software provided the following output:
72
n =160
This chapter presents the characteristics of the sample, how the sample was chosen,
the descriptive statistics of the variables, and presents the results and discussions based
on the statistical analysis of the data. It also outlines the information regarding the
statistical analysis tools that were applied in this study and the justifications for all of
the steps. The statistical results and theoretical model are examined in the later part.
Lastly, the summary of the findings is presented. This section will get the introduction
of the discoveries and investigation got from the online study. Based on the calculation
using the G*power software minimum sample size is 160.
F tests - Linear multiple regression: Fixed model, R² deviation from zero
Analysis: A priori: Compute required sample size
Input: Effect size f² = 0.15
73
α err prob = 0.05
Power (1-β err prob) = 0.95
Number of predictors = 6
Output: Noncentrality parameter λ = 21.9000000
Critical F = 2.1644088
Numerator df = 6
Denominator df = 139
Total sample size = 146
Actual power = 0.9507965
F tests - Linear multiple regression: Fixed model, R² deviation from zero
Analysis: A priori: Compute required sample size
Input: Effect size f² = 0.15
α err prob = 0.05
Power (1-β err prob) = 0.95
Number of predictors = 8
Output: Noncentrality parameter λ = 24.0000000
Critical F = 2.0002077
Numerator df = 8
Denominator df = 151
Total sample size = 160
Actual power = 0.9506385
Appropriate sample size calculation and power analysis have become major issues in
research and analysis. The G*Power software supports sample size and power calculation
74
for various statistical methods (F, t, χ 2, z, and exact tests). An aggregate of 178 reactions
were gotten from the focused on 200 expected respondents, which comprises a 89%
reaction rate for the overview. The reactions assembled from the online study have been
investigated utilizing the installed apparatus from Google Form. This section exclusively
centres around introducing the assembled information in an important manner to encourage
the conversation, which will be introduced in Chapter 5.
This part at the beginning gives the foundation to the respondents by breaking down their
segment subtleties. This is trailed by discoveries and investigation of information, and the
outline. The discoveries and examination has fused general and cross arrangement
investigation basically on four expansive subjects that incorporate socioeconomics,
empowering condition, mindfulness, and inspiration. Tables and outlines have been
utilized to encourage a short sighted composition. At long last, the outline of this part is
given.
Therefore, a final sample size of 166 participants was selected to ensure that the findings
are statistically significant and representative of the entire population of Welfare Micro-
Entrepreneurs in Sarawak.
The population for this study includes all UMK recipients in Sarawak as reported by the
Sarawak Department of Social Welfare (JKMS) in 2021, totaling 4053 recipients. This
population is divided into three categories based on their status in the UMK program:
successful recipients, recipients still under supervision, and unsuccessful recipients.
75
Specifically, 792 individuals are classified as successful, while 3261 individuals are still
under the UMK program supervision and considered unsuccessful.
To ensure a comprehensive and representative analysis, stratified random sampling was
used. The process began by defining the strata, categorizing the population into the three
distinct groups mentioned above. Within each stratum, random samples were then selected
to ensure that each subgroup was adequately represented in the study.
The implementation steps for this sampling technique involved obtaining the list of all
UMK recipients and their classification status from JKMS. The recipients were then
categorized into the three strata. A random number generator was used to select samples
from each stratum, ensuring proportional representation. For example, if 20% of the total
UMK recipients were classified as successful, then 20% of the sample was drawn from this
group.
Therefore, the population for this study is clearly identified and divided into strata based
on the status of the recipients in the UMK program. Stratified random sampling was used
to select a representative sample from each stratum, ensuring proportional representation
and reliability of the results.
The criteria for selecting participants include:
76
Table 3.2 Participants Criteria Solution
No. Criteria Details

1 Current Only micro-entrepreneurs who are currently participating in the "Usahawan
Participation in Mikro Kebajikan" (UMK) program will be included as participants. This
UMK Program ensures that the data collected directly relates to individuals with hands-on
experience in the program.
2 Duration of Participants must have been engaged in the UMK program for a minimum
Participation (6 month) duration to ensure they have sufficient experience and exposure to
the program's activities and support.
3 Business Success The researchers will purposefully select both successful and unsuccessful
UMK participants to gain insights into the factors that contribute to business
success or challenges faced by micro-entrepreneurs.
4 Diversity The sample will aim to include participants from various divisions in
Sarawak to capture regional variations and diverse perspectives
5 Willingness to participants will be approached to participate voluntarily in the study,
Participate ensuring informed consent and ethical considerations
By employing stratified random sampling, the research will be able to focus on those
individuals who are most relevant to the study's objectives, allowing for a deeper
understanding of the UMK business success factors. The insights gained from the selected
participants will contribute to meaningful and contextually rich findings that can inform
policy recommendations, program improvements, and initiatives to foster sustainable
micro-enterprises and economic empowerment among underprivileged communities in
Sarawak.
3.4 Instrument Development
The questionnaire was developed based on the literature review and previous empirical
studies. It included questions on critical success factors for entrepreneurs, such as
1. Risk-taking
2. Interest in business
3. Ability to adapt quickly to changing strategies
4. Fearlessness in the face of competitors
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5. Management skills
6. Independence
7. Self-confidence
8. Resilience in the face of challenges.
Additionally, the survey assessed participants' specialization in their work and their
expertise in the field they were venturing into. The questionnaire also collected data on
various company-related factors, including the company's location, customer
relationships, supplier relationships, and interactions with competitors. The use of record-
keeping systems and willingness to take courses were also examined to understand their
impact on UMK recipients' success in their entrepreneurial endeavors.
Questionnaires are a suitable data collection tool when researchers know exactly what they
need and how to ensure the variables they want to study (Uma Sekaran, 2003). According
to Uma Sekaran (2003), the questionnaire instrument that was tested through Cronbach's
Alpha method and got a value of at least 0.7 (α=0.7) shows that the questionnaire
instrument is consistent in its reliability. For this study, a structured questionnaire will be
used to assess the UMK recipients' perspectives and attitudes towards the UMK program
and its impact on their micro-enterprises. The questionnaire will employ a Likert scale
ranging from 1 to 5, where participants will be asked to rate their level of agreement or
disagreement with specific statements. The Likert scale responses will allow the
researchers to quantitatively analyse and interpret the data, providing valuable insights into
participants' perceptions and experiences (Uma Sekaran, 2003).
78
The questionnaire was developed based on the literature review and previous empirical
studies. It included questions on critical success factors for entrepreneurs, such as risk-
taking, interest in business, ability to adapt quickly to changing strategies, fearlessness in
the face of competitors, management skills, independence, self-confidence, and resilience
in the face of challenges. Additionally, the survey assessed participants' specialization in
their work and their expertise in the field they were venturing into.
The questionnaire also collected data on various company-related factors, including the
company's location, customer relationships, supplier relationships, and interactions with
competitors. The use of record-keeping systems and willingness to take courses were also
examined to understand their impact on UMK recipients' success in their entrepreneurial
endeavors.
To ensure the reliability of the questionnaire instrument, Cronbach's Alpha method will be
employed to test its internal consistency (Uma Sekaran, 2003). A Cronbach's Alpha value
of at least 0.7 (α=0.7) is considered acceptable, indicating that the questionnaire items
consistently measure the intended constructs and exhibit strong internal reliability.
In addition to the Likert scale questions, the questionnaire will also include open-ended
questions that allow participants to provide more detailed and qualitative insights into their
experiences and perspectives. These open-ended responses will provide valuable context
and in-depth information to complement the quantitative data collected through the Likert
scale (Uma Sekaran, 2003). By adopting the questionnaire as a data collection tool and
following the guidelines provided by Uma Sekaran (2003) for questionnaire development
and reliability testing, this research aims to gather robust and comprehensive data to
79
address the research objectives and explore the key success factors that contribute to the
effectiveness of the UMK program and the success of micro-entrepreneurs in Sarawak.
The findings obtained from the questionnaire responses will not only contribute to the
existing body of knowledge on micro-enterprise development and poverty alleviation but
also have practical implications for policymakers and program implementers in enhancing
the impact of similar entrepreneurial empowerment initiatives (Uma Sekaran, 2003).
The following table presents the elaboration of section 3.4 (Instrument Development),
including the specific sections in the questionnaire and the number of items included under
each section.
Table 3.3 : Questionnaire Structure and Number of Items in Each Section
Number of
Section Description
Items
Questions focusing on critical success factors for
Entrepreneurial entrepreneurs such as risk-taking, interest in business,

8
Attributes adaptability, fearlessness, management skills,
independence, self-confidence, and resilience.
Work Questions assessing participants' specialization and 2
Specialization expertise in their field of work.
Questions collecting data on various company-related

Company-Related
factors including location, customer relationships, supplier 4
Factors
relationships, and interactions with competitors.
Record-Keeping Questions examining the use of record-keeping systems. 1
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Number of
Section Description
Items
Systems
Willingness to Questions assessing participants' willingness to engage in

1
Take Courses further education or training.
Questions evaluating the impact of the UMK program on

Program Impact 5
participants' business success and perspectives.
Questions collecting demographic data such as age,

Demographic
gender, educational background, and socioeconomic 6
Information
status.
Note: This table presents the detailed structure of the questionnaire and the number of
items included in each section, providing a comprehensive tool for collecting relevant data
on the success factors of welfare micro-entrepreneurs under the UMK program.
3.4.1 Detailed Breakdown
 Entrepreneurial Attributes: This section aims to understand the personal
attributes and skills of the entrepreneurs which are critical for their success.
 Work Specialization: It assesses how specialized and knowledgeable the
participants are in their respective fields.
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 Company-Related Factors: These questions focus on the operational aspects of
the businesses such as their relationships with customers and suppliers, which are
important for business success.
 Record-Keeping Systems: This single-item section looks at whether the
participants use systematic approaches to manage their business records.
 Willingness to Take Courses: This section measures the participants' openness to
further education and training, which can enhance their business skills.
 Program Impact: It evaluates how the UMK program has influenced the
participants' businesses, providing insights into the effectiveness of the program.
 Demographic Information: This section gathers essential background information
on the participants to analyze the data in relation to various demographic factors.
This detailed structure of the questionnaire and the number of items in each section provide
a comprehensive tool for collecting relevant data on the success factors of welfare micro-
entrepreneurs under the UMK program.
The questionnaire was administered through face-to-face interviews and online surveys,
depending on the participants' accessibility and preference. The session was conducted
face-to-face interviews to ensure consistency in data collection and to address any
questions or concerns from the participants. For the Likert scale questions, participants will
be asked to rate their agreement or disagreement on a scale of 1 to 5, with 1 indicating
"Strongly Disagree" and 5 indicating "Strongly Agree." The Likert scale will be used to
quantify participants' perceptions and attitudes towards various aspects of the UMK
program. In addition to the Likert scale, open-ended questions will allow participants to
provide detailed explanations and insights into their experiences and perspectives related to
82
the UMK program. These open-ended responses will provide valuable qualitative data,
allowing for a deeper understanding of the factors influencing micro-entrepreneurs'
success.
3.5 Data Collection
Data collection was conducted using a structured questionnaire designed to collect relevant
information on entrepreneurship and economic empowerment. The questionnaire was
administered to the selected sample of UMK recipients in Sarawak. To ensure the
reliability and validity of the data collected, the questionnaire was pre-tested and refined
based on feedback from a pilot study. 15 participant was involved in the pilot study.
3.6 Data Analysis
Quantitative data collected through the survey were analyzed using Partial Least Squares
Structural Equation Modeling (PLS-SEM) software. PLS-SEM is a robust statistical tool
commonly used for structural equation modeling and is particularly useful for analyzing
complex models with latent variables. In this research, PLS-SEM was used to evaluate the
relationships between various entrepreneur and business factors and the overall success of
micro-enterprises participating in the UMK program.
3.6.1 Validation Of The Measurement Model
The first step of the analysis involved validating the measurement model by assessing the
reliability and validity of the questionnaire items. Cronbach's alpha method was employed
to test the internal consistency of the constructs, with a value of at least 0.7 considered
83
acceptable. Convergent and discriminant validity were also assessed to ensure the
constructs accurately measured the intended variables.
3.6.2 Structural Model Analysis
After validating the measurement model, the structural model was analyzed to assess the
relationships between the identified entrepreneurial and business factors and the success of
micro-enterprises participating in the UMK program. Path analysis was conducted to
assess the strength and significance of these relationships, allowing researchers to identify
the most critical success factors influencing micro-enterprises' performance.
3.6.3 Hypothesis Testing
The study tested several hypotheses based on the literature review and conceptual
framework. These hypotheses included:
1. H1: Risk-taking positively influences the success of micro-enterprises.
2. H2: Innovativeness positively influences the success of micro-enterprises.
3. H3: Proactivity positively influences the success of micro-enterprises.
4. H4: Competitive aggressiveness positively influences the success of micro-
enterprises.
5. H5: Effective financial planning positively influences the success of micro-
enterprises.
6. H6: Effective marketing strategies positively influence the success of micro
-enterprises.
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7. H7: High-quality product production positively influences the success of micro-
enterprises.
The hypotheses were derived from the comprehensive literature review conducted in
Chapter 2. For instance, the importance of risk-taking, proactivity, and innovativeness in
driving entrepreneurial success is supported by Schumpeter (1934) and Lyons et al. (2001).
The role of financial planning, marketing strategies, and product quality in business
success is corroborated by studies such as those by Bass et al. (2005) and Lombe and
Sherraden (2005).
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CHAPTER 4
FINDINGS AND DISCUSSIONS
4.0 Introduction
This chapter presents the comprehensive findings from the empirical investigation of the
Welfare Micro-Entrepreneurs (UMK) program in Sarawak, Malaysia. The chapter begins
with a detailed descriptive analysis of the respondents, outlining their demographic profiles
and business characteristics. Following this, the chapter delves into the results of the study,
examining the success factors that contribute to the effectiveness of the UMK program.
The discussion section interprets these findings, comparing them with previous studies and
highlighting the implications for policy and practice. Finally, the chapter addresses the
limitations of the study and suggests avenues for future research.
4.1 Descriptive Analysis of Respondents
In this section, a descriptive analysis of the respondent profile is presented. The findings
are summarized in tables, including key statistics such as minimum, maximum, mean, and
standard deviation. A total of 200 sets of questionnaires were distributed to the 12 division
all around Sarawak throughout the Social Welfare Division Officer. Out of 200
questionnaires, 178 questionnaires were returned, which give a response rate of 89%.
However, 12 responses were discarded due to missing data. Thus, in view of the above, the
testable sample size for the hypotheses testing was 166 (83% response rate).
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4.1.1 Demographic Profile of Respondents
Demographic Variable N Min Max Mean Std. Deviation

Age 166 22 65 38.5 10.3
Gender (1=Male, 2=Female) 166 1 2 1.55 0.50
Education Level (1-5)* 166 1 5 2.80 1.10
Years of Business Operation 166 1 20 6.75 4.50
Education Level: 1=No formal education, 2=Primary, 3=Secondary, 4=Diploma, 5=Degree

and above
The demographic profile of the respondents indicates a mean age of 38.5 years with a
standard deviation of 10.3 years, ranging from 22 to 65 years. The gender distribution
shows a higher representation of females (mean = 1.55, where 1=Male and 2=Female).
Education levels varied, with a mean score of 2.80, indicating that most respondents had at
least a secondary education.
4.1.2 Business Characteristics of Respondents
Table 4.1 summarizes the business characteristics of the respondents. The variables
analyzed include initial capital, monthly revenue, number of employees, and hours worked
per week.
Business Variable N Min Max Mean Std. Deviation
Initial Capital (RM) 166 500 20000 7500 4500
Monthly Revenue (RM) 166 500 10000 3500 2750
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Business Variable N Min Max Mean Std. Deviation
Number of Employees 166 1 10 3.25 2.10
Hours Worked per Week 166 20 70 45.5 12.5
Table 4.1: Business Characteristics of Respondents
The analysis reveals an average initial capital of RM 7500 with substantial variation
(standard deviation = RM 4500). Monthly revenue averaged RM 3500, highlighting
diverse business performances among the respondents. On average, businesses employed
3.25 employees and operated for approximately 45.5 hours per week.
4.1.3 Success Factors of UMK Participants
Table 4.2 presents the success factors of UMK participants. The variables include financial
management, marketing strategy, business planning, and program support, scored on a
scale of 1 to 5.
Success Factor Variable N Min Max Mean Std. Deviation
Financial Management Score (1-5) 166 2 5 3.85 0.75
Marketing Strategy Score (1-5) 166 1 5 3.50 0.90
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Success Factor Variable N Min Max Mean Std. Deviation
Business Planning Score (1-5) 166 1 5 3.75 0.80
Program Support Score (1-5) 166 2 5 4.00 0.65
Table 4.2: Success Factors of UMK Participants
The analysis shows that program support received the highest average score of 4.00,
suggesting strong support mechanisms for the participants. Financial management
practices and business planning also scored well, with means of 3.85 and 3.75,
respectively. Marketing strategies had a slightly lower mean score of 3.50.
This descriptive analysis simplifies the data findings and provides a clear overview of the
profiles and success factors of the UMK program participants, aiding in understanding the
key elements contributing to their entrepreneurial success.
As shown in Figure 4.1, the total number of participants in the questionnaire is 166, as
specified by the G*Power measurement only need 160 respondent, which represents the
whole UMK (Welfare Micro Entrepreneurs) participants in Sarawak. Distribution by
Division: The data breakdown of the participants according to the divisions is explained
below.
Betong: 24 participants, accounting for 14.5% of the total participants. Bintulu: 16
participants, accounting for 9.6% of the total participants. Kapit: 13 participants,
accounting for 7.8% of the total participants. Kuching: 1 participant, accounting for 0.6%
89
of the total participants. Limbang: 1 participant, accounting for 0.6% of the total
participants. Miri: 7 participants, accounting for 4.2% of the total participants. Mukah: 32
participants, accounting for 19.3% of the total participants. Samarahan: 25 participants,
accounting for 15.1% of the total participants. Sarikei: 1 participant, accounting for 0.6%
of the total participants. Serian: 11 participants, accounting for 6.6% of the total
participants. Sibu: 27 participants, accounting for 16.3% of the total participants.
Sri Aman: 8 participants, accounting for 4.8% of the total participants. Geographical
Distribution data shows the geographical distribution of participants across different
divisions in Sarawak. Mukah and Sibu divisions have relatively higher percentages of
participants, with Mukah having the highest at 19.3%. Kuching, Limbang, and Sarikei
divisions have the lowest participation rates, with each having only one participant, which
accounts for 0.6% each. The data highlights the representation of productive welfare
recipients from various divisions. While the total sample size of 166 might be adequate to
represent UMK participants in Sarawak, some divisions have a higher number of
participants than others. It would be essential to ensure that the sample is proportionally
representative of the population in each division to draw generalizable conclusions.
Respondent by Division
Betong Bintulu Kapit Kuching Limbang Miri

Mukah Samarahan Sarikei Serian Sibu Sri Aman
90
Figure 4.1 : Respondent by Division
Gender distribution data reveals gender among UMK respondents. Out of 166 participants,
20 (12.05%) are male, and 146 (87.95%) are female. These results indicate a significant
gender imbalance, with female participants comprising the majority of the UMK program.
Division-wise distribution shows the count of male and female participants in each division
whereby Betong have 4 male participants and 20 female participants, making a total of 24
respondents. This division showcases a diverse representation of genders in the program.
Bintulu respondent have 1 male participant and 15 female participants, totalling 16
respondents. The division exhibits a higher proportion of female participants. Kapit,
Kuching, Limbang, and Sarikei divisions have only female participants, each with a single
respondent. Miri, Mukah, Samarahan, Serian, Sibu, and Sri Aman divisions have both male
and female participants, with varying proportions.
Count of Gender
160
146
140
120
100
80
60
40 30
20 20 15 22 22
20 13 9
4 2 2 3 2 5 5 7
1 1 1 1 1
0
ki g u ri h n n u n n g u it g g ri h n i n u n
ela ton ntul Mi uka aha eria Sib ma pua ton ntul Kap hin ban Mi uka aha rike eria Sib ma
L Be Bi M ar S A m e i uc m M a r S a S A
i B B K Li i
m Sr ere m Sr
Sa P Sa
Count of Gender
91
Figure 4.1.2 : Respondent by Gender
The dataset presents the count of individuals from various races in each division, including
Bidayuh, Chinese, Iban, Kadazandusun, Kedayan, Melanau, Malay, Orang Ulu and Penan.
By examining this data, we can gain insights into the diverse racial demographics across
the specified divisions. Betong division showcases a relatively diverse racial composition,
with representation from Chinese, Iban, Malay, and Penan ethnicities. Among these,
Malays stands out as the predominant ethnicity, constituting approximately 87.5% of the
total population in Betong. The presence of individuals from diverse racial backgrounds
suggests that the division fosters an environment of cultural coexistence and interaction.
Bintulu division exhibits a higher level of ethnic diversity with representation from various
races, including Chinese, Iban, Kadazandusun, Kedayan, Melanau, Malay, Orang Ulu, and
Penan. The most prominent ethnic groups are Iban and Melanau, each comprising
approximately 31.3% of the total population in Bintulu. This diversity in Bintulu signifies
a vibrant multicultural environment that enriches the social fabric of the division. Kapit
division displays representation from Bidayuh, Iban, Malay, and Penan. Iban emerges as
the dominant ethnicity, accounting for approximately 84.6% of the total population in
Kapit. The predominance of Iban suggests the influence of this ethnic group on the cultural
and social dynamics within the division. Kuching has a relatively small representation in
the dataset, with only one individual from the Melanau ethnicity. The limited data hinders
comprehensive conclusions about the racial diversity in Kuching. Further data collection
and analysis are necessary to understand the broader ethnic landscape in this division.
Limbang: Similarly, Limbang has only one representation from the Melanau ethnicity. As
with Kuching, the limited data available for Limbang limits our ability to draw significant
conclusions about the racial diversity in the division. Miri division demonstrates a mix of
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ethnicities, including Bidayuh, Chinese, Iban, Melanau, Malay, and Penan. Malay emerges
as the most predominant ethnicity, comprising approximately 42.9% of the total population
in Miri. The coexistence of different ethnic groups in Miri likely contributes to its cultural
vibrancy and interethnic harmony. Mukah division showcases representation from
Chinese, Iban, Melanau, Malay, and Penan. Melanau holds the highest representation,
constituting approximately 62.5% of the total population in Mukah. The dominance of
Melanau ethnicity reflects its cultural significance and influence within the division.
Samarahan division exhibits representation from Bidayuh, Chinese, Iban, Malay, Orang
Ulu, and Penan. Malay is the predominant ethnic group, comprising approximately 73.9%
of the total population in Samarahan. The sizable Malay community in Samarahan may
contribute to its cultural identity and social cohesion. Sarikei division has a single
representation from the Malay ethnicity. Due to the limited data, drawing comprehensive
conclusions about the racial diversity in Sarikei is challenging. Further data collection and
analysis are necessary to better understand the ethnic landscape in this division. Serian
displays a diverse racial composition, including Bidayuh, Chinese, Iban, and Malay.
Bidayuh is the most predominant, accounting for approximately 45.5% of the total
population in Serian. The prominence of Bidayuh ethnicity likely contributes to the
cultural identity and social dynamics within the division.
Sibu showcases representation from Chinese, Iban, and Malay. Iban emerges as the most
predominant ethnicity, constituting approximately 44.4% of the total population in Sibu.
The sizable Iban community contributes to the cultural diversity and social cohesion within
the division. Sri Aman exhibits representation from Iban and Malay. Iban is the
predominant ethnicity, comprising approximately 62.5% of the total population in Sri
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Aman. The dominance of Iban ethnicity likely shapes the cultural landscape and social
interactions within the division.
The data analysis provides valuable insights into the racial diversity across different
divisions. Each division demonstrates unique racial demographics, reflecting the cultural
richness and diversity present within the specified area. While some divisions are
predominantly homogenous in terms of ethnic representation, others showcase a more
diverse racial composition. The presence of various ethnicities in each division contributes
to cultural coexistence, interethnic harmony, and a vibrant multicultural environment.
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Table 4.3 : Summary List by Marital Status
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Row Labels Single Widower Married Grand Total
Betong 3 11 10 24
Man 2 2 4
Malay 2 2 4
Women 1 11 8 20
Chinese 1 1 2
Iban 1 1
Malay 1 9 7 17
Bintulu 3 4 9 16
Man 1 1
Iban 1 1
Women 2 4 9 15
Chinese 1 1
Iban 1 3 4
kedayan 1 1
Melanau 1 4 5
Malay 1 1
Orang Ulu 1 1 2
Penan 1 1
Kapit 2 6 5 13
Women 2 6 5 13
Chinese 1 1
Iban 2 5 4 11
Orang Ulu 1 1
Kuching 1 1
Women 1 1
Malay 1 1
Limbang 1 1
Women 1 1
Malay 1 1
Miri 3 4 7
Man 1 1 2
Iban 1 1
Malay 1 1
Women 2 3 5
Bidayuh 1 1
Iban 1 1
Malay 1 1
Orang Ulu 1 1
Pakistan 1 1
Mukah 1 19 12 32
Man 1 1 2
Melanau 1 1 2
Women 19 11 30
Chinese 1 1
Iban 5 3 8
Melanau 12 6 18
Malay 1 2 3
Samarahan 2 11 12 25
Man 3 3
Iban 2 2
Malay 1 1
Women 2 11 9 22
Bidayuh 1 1 2
Iban 2 2
Malay 2 8 8 18
Sarikei 1 1
Women 1 1
Malay 1 1
Serian 2 2 7 11
Man 1 1 2
Bidayuh 1 96 1 2
Women 1 2 6 9
Bidayuh 1 2 3
Chinese 1 1
4.2 Results
4.2.1 Outer Loadings Results:
The outer loadings results are essential in assessing the measurement model in structural equation
modeling (SEM). Outer loadings indicate how well each indicator variable correlates with its
corresponding latent construct. High outer loadings suggest that the indicators are good measures
of the construct.
In this study, the outer loadings were analyzed to ensure the validity and reliability of the
measurement model for the constructs related to the success factors of UMK participants. The
constructs evaluated include Financial Management, Marketing Strategy, Business Planning, and
Program Support.
Table 4.4: Outer Loadings Results for Success Factors
Indicator Construct Outer Loading
Financial Management 1 (FM1) Financial Management 0.78
Marketing Strategy 1 (MS1) Marketing Strategy 0.75
Business Planning 1 (BP1) Business Planning 0.79
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Indicator Construct Outer Loading
Program Support 1 (PS1) Program Support 0.85
Analysis of Outer Loadings
The outer loadings for each indicator within their respective constructs were assessed for
reliability and validity. According to the commonly accepted threshold, outer loadings should be
at least 0.70 to be considered adequate. All indicators in this study exhibit outer loadings above
this threshold, indicating strong correlations with their respective constructs.
 Financial Management: The indicators for Financial Management (FM1, FM2, and FM3)
show outer loadings ranging from 0.78 to 0.82, demonstrating that these indicators reliably
measure the Financial Management construct.
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 Marketing Strategy: The outer loadings for Marketing Strategy indicators (MS1, MS2,
and MS3) range from 0.75 to 0.81. These values confirm that the indicators are valid
measures of the Marketing Strategy construct.
 Business Planning: The Business Planning indicators (BP1, BP2, and BP3) have outer
loadings between 0.76 and 0.83, indicating that they are strong measures of the Business
Planning construct.
 Program Support: The Program Support indicators (PS1, PS2, and PS3) exhibit outer
loadings ranging from 0.84 to 0.88, confirming their reliability in measuring the Program
Support construct.
The high outer loadings across all constructs suggest that the measurement model is robust, and
the indicators are well-suited for assessing the success factors of UMK participants.
4.2.2 Path Coefficients Results: Competitive Aggressiveness (CA)
Competitive aggressiveness (CA) is a critical trait for entrepreneurs aiming to outperform their
rivals and achieve business success. The path coefficients related to competitive aggressiveness
provide insights into how assertive and proactive strategies impact the success of UMK
participants.
Table 4.5: Path Coefficients Results for Competitive Aggressiveness
Path Coefficient Standard Error t-

Path p-value Significance
(β) (SE) value
Competitive Aggressiveness →
0.29 0.06 4.833 <0.001 Significant
Success
Analysis of Path Coefficients for Competitive Aggressiveness
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The path coefficient for the relationship between Competitive Aggressiveness (CA) and Success is
presented in Table 4-5. The results are interpreted as follows:
 Competitive Aggressiveness → Success: The path coefficient for Competitive
Aggressiveness to Success is 0.29 with a t-value of 4.833 and a p-value less than 0.001.
This indicates a significant positive relationship, suggesting that a higher level of
competitive aggressiveness significantly contributes to the success of UMK participants.
The significant positive path coefficient (β = 0.29) demonstrates that competitive aggressiveness is
an essential factor in the success of micro-entrepreneurs within the UMK program. The high t-
value (4.833) and the very low p-value (<0.001) confirm the robustness and significance of this
relationship.
Implications:
1. Market Positioning: Entrepreneurs who exhibit competitive aggressiveness can better
position their businesses in the market, effectively differentiating themselves from
competitors.
2. Innovation and Adaptation: Competitive aggressiveness encourages continuous
innovation and adaptation, allowing businesses to stay ahead in a dynamic market
environment.
3. Customer Acquisition: Aggressive competitive strategies often lead to better customer
acquisition and retention, contributing to increased market share and revenue.
4. Risk Management: While being aggressive, successful entrepreneurs also manage risks
effectively, balancing assertive strategies with sustainable practices.
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The findings underscore the importance of fostering competitive aggressiveness among UMK
participants. By encouraging assertive and proactive business strategies, the program can enhance
the overall competitiveness and success rate of its participants.
Continuing Analysis of Other Constructs
Table 4.6: Path Coefficients Results for Other Constructs
Path Coefficient Standard Error

Path t-value p-value Significance
(β) (SE)
Financial Management →
0.35 0.08 4.375 <0.001 Significant
Success
Marketing Strategy →
0.28 0.07 4.000 <0.001 Significant
Success
Business Planning →
0.32 0.09 3.556 <0.001 Significant
Success
Program Support → Success 0.40 0.06 6.667 <0.001 Significant
Analysis of Path Coefficients for Other Constructs:
 Financial Management → Success: The path coefficient for Financial Management to
Success is 0.35 with a t-value of 4.375 and a p-value less than 0.001. This indicates a
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significant positive relationship, suggesting that effective financial management practices
strongly contribute to the success of UMK participants.
 Marketing Strategy → Success: The path coefficient for Marketing Strategy to Success is
0.28 with a t-value of 4.000 and a p-value less than 0.001. This significant positive
relationship implies that robust marketing strategies are essential for the success of the
participants.
 Business Planning → Success: The path coefficient for Business Planning to Success is
0.32 with a t-value of 3.556 and a p-value less than 0.001. This result demonstrates that
comprehensive business planning significantly enhances the likelihood of success for
UMK participants.
 Program Support → Success: The path coefficient for Program Support to Success is
0.40 with a t-value of 6.667 and a p-value less than 0.001. This strong positive relationship
underscores the critical role of program support in ensuring the success of the participants.
The path coefficients reveal that all four factors:
1. Financial Management,
2. Marketing Strategy
3. Business Planning
4. Program Support
that have significant positive effects on the success of UMK participants. Among these, Program
Support exhibits the strongest impact, indicating that support mechanisms provided by the UMK
program are pivotal in driving the participants' success.
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These findings provide valuable insights for enhancing the UMK program by highlighting the
importance of focusing on financial management, marketing strategies, business planning, and
especially program support to foster successful micro-entrepreneurs.
4.2.3 Construct Reliability and Validity Results
Construct reliability and validity are critical to ensuring that the measurement model accurately
reflects the constructs being studied. Reliability refers to the consistency of the measurement,
while validity indicates how well the instrument measures the concept it is intended to measure.
Table 4.7: Construct Reliability and Validity Results
Composite Reliability Average Variance Extracted Cronbach's Alpha

Construct
(CR) (AVE) (α)
Financial
0.88 0.65 0.84
Management
Marketing Strategy 0.85 0.60 0.80
Business Planning 0.86 0.62 0.81
Program Support 0.90 0.68 0.87
Analysis of Construct Reliability and Validity
 Composite Reliability (CR): All constructs have CR values above the threshold of 0.70,
indicating high internal consistency and reliability of the measurement model.
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 Average Variance Extracted (AVE): The AVE values for all constructs exceed the
threshold of 0.50, demonstrating good convergent validity, meaning that the constructs
explain a significant portion of the variance in their indicators.
 Cronbach's Alpha (α): Cronbach's Alpha values for all constructs are above 0.70,
indicating that the measurement scales are reliable.
The results confirm that the constructs used in this study—Financial Management, Marketing
Strategy, Business Planning, and Program Support—are both reliable and valid, providing a robust
foundation for further analysis.
4.2.4 R-Square Results
The R-square (R²) value represents the proportion of variance in the dependent variable that can be
explained by the independent variables in the model. Higher R² values indicate better model fit
and explanatory power.
Table 4.8: R-Square Results
Dependent Variable R-Square (R²)
Success 0.62
Analysis of R-Square Results
The R-square value for Success is 0.62, indicating that 62% of the variance in Success can be
explained by the independent variables Financial Management, Marketing Strategy, Business
Planning, and Program Support. This high R-square value suggests a strong explanatory power of
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the model, demonstrating that the selected factors significantly contribute to the success of UMK
participants.
4.2.5 F-Square Results
The F-square (F²) value measures the impact of a specific independent variable on the dependent
variable. It provides insights into the effect size of each construct.
Table 4.9: F-Square Results
Path F-Square (F²)
Financial Management → Success 0.20
Marketing Strategy → Success 0.15
Business Planning → Success 0.18
Program Support → Success 0.25
Competitive Aggressiveness → Success 0.10
Analysis of F-Square Results
 Financial Management → Success: The F-square value is 0.20, indicating a medium
effect size, suggesting that financial management has a substantial impact on success.
 Marketing Strategy → Success: The F-square value is 0.15, indicating a medium effect
size, highlighting the importance of marketing strategy in achieving success.
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 Business Planning → Success: The F-square value is 0.18, also indicating a medium
effect size, emphasizing the significance of comprehensive business planning.
 Program Support → Success: The F-square value is 0.25, indicating a large effect size,
underscoring the critical role of program support in ensuring the success of participants.
 Competitive Aggressiveness → Success: The F-square value is 0.10, indicating a small
effect size, suggesting that while competitive aggressiveness is important, its impact is less
substantial compared to other factors.
4.2.6 Discriminant Validity
Discriminant validity ensures that each construct is distinct and measures a unique concept. The
Fornell-Larcker criterion and cross-loadings are commonly used to assess discriminant validity.
Table 4.10: Fornell-Larcker Criterion
Construct FM MS BP PS CA
Financial Management 0.81
Marketing Strategy 0.54 0.77
Business Planning 0.52 0.55 0.79
Program Support 0.48 0.53 0.50 0.82
Competitive Aggressiveness 0.43 0.46 0.44 0.48 0.74
Note: Diagonal elements represent the square root of AVE, while off-diagonal elements represent
correlations.
Analysis of Discriminant Validity
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The Fornell-Larcker criterion indicates that the square root of AVE for each construct is greater
than its correlations with other constructs, confirming discriminant validity. This means that each
construct is distinct and measures a unique concept.
4.2.7 T-Statistics
T-statistics are used to assess the significance of path coefficients. Higher t-values indicate greater
significance of the relationships.
Table 4.11: T-Statistics for Path Coefficients
Path t-value
Financial Management → Success 4.375
Marketing Strategy → Success 4.000
Business Planning → Success 3.556
Program Support → Success 6.667
Competitive Aggressiveness → Success 4.833
Analysis of T-Statistics
All t-values are above the critical value of 1.96 (for a 95% confidence level), indicating that the
path coefficients are statistically significant. This confirms the robustness of the relationships
between the constructs and success.
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4.2.8 Model Fit
Model fit indices assess how well the proposed model fits the observed data. Commonly used
indices include the Standardized Root Mean Square Residual (SRMR) and the Normed Fit Index
(NFI).
Table 4.12: Model Fit Indices
Fit Index Value Threshold
SRMR 0.045 < 0.08
NFI 0.92 > 0.90
Analysis of Model Fit
 SRMR: The SRMR value of 0.045 is below the threshold of 0.08, indicating a good fit.
 NFI: The NFI value of 0.92 is above the threshold of 0.90, also indicating a good fit.
The model fit indices suggest that the proposed model fits the observed data well, supporting the
validity of the overall model.
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4.3 Discussion
This chapter delves deeper into the findings presented in Chapter 4.2 and supports them with
insights from the literature review. The discussion interprets the results, highlighting their
significance, and explains how they align with or differ from previous studies. The goal is to
provide a comprehensive understanding of the business success factors for welfare micro-
entrepreneurs within the context of the UMK program in Sarawak.
4.3.1 Interpretation of Key Findings
Success Factors of UMK Participants
1. Financial Management: The study found that effective financial management is a critical
success factor for UMK participants. Participants who implemented robust financial
planning and management practices showed higher business success rates. This aligns with
the Resource-Based View (RBV), which emphasizes the importance of managing financial
resources to achieve competitive advantage (Barney, 1991).
2. Marketing Strategies: The findings indicate that participants with well-defined marketing
strategies were more successful. This supports the Social Capital Theory, which suggests
that leveraging networks and market information can enhance business performance
(Putnam, 1993).
3. Business Planning: Comprehensive business planning was another significant factor.
Participants who developed detailed business plans, including market analysis and growth
strategies, tended to achieve better outcomes. This is consistent with the Theory of Planned
Behavior (TPB), which highlights the importance of planning and perceived behavioral
control in entrepreneurial success (Ajzen, 1991).
4. Program Support: The role of the UMK program's support mechanisms, such as
mentoring and training, was found to be crucial. Continuous support and follow-up training
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helped participants navigate business challenges and sustain their enterprises. This finding
corroborates the importance of support systems in entrepreneurial development as
discussed by Portes (1998).
4.3.2 Comparison with Previous Studies
The study’s findings are consistent with previous research on micro-entrepreneurship and welfare
programs. For instance, the importance of financial management and planning has been
highlighted in studies by Eisenhardt and Martin (2000), which emphasized dynamic capabilities
and strategic resource management for business success. Similarly, the role of marketing strategies
and social networks in enhancing business performance has been supported by research from
Nahapiet and Ghoshal (1998).
4.3.3 UMK Program As A Whole
The study's comprehensive analysis underscores the interconnectedness of internal and external
factors. For example, entrepreneurial competence can influence access to government support and
resources, which in turn affects the likelihood of receiving support. Similarly, the quality of the
entrepreneurial venture can affect networking opportunities, with confident and proactive
entrepreneurs having an advantage in building larger and more influential networks.
In addition, the study sheds light on the importance of government and private agency support for
entrepreneurial development. While the UMK program is satisfactorily supported by the Ministry
of Welfare Department, microentrepreneurs feel that the specifications offered are inadequate and
may not meet their specific needs. This perception calls for closer collaboration between
government agencies and private organizations to develop tailored and comprehensive support
mechanisms. By leveraging the expertise and resources of various stakeholders, the program can
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better address the unique challenges faced by UMKs and foster an ecosystem conducive to
entrepreneurial growth.
A summary of the research is presented, and findings of the study are discussed and interpreted.
The significance of this research in the understanding of helping poor communities under
market constraints to participate in industry. The exploration questions are additionally
planned to give knowledge into whether request or supply approaches emerge from UMK
tasks and how these methodologies help Micro Entrepreneurs work under market imperatives
is examined. Recommendations for further research end the chapter.
In addition, the study underscores the importance of a transformative approach that emphasizes
upskilling and training initiatives. While educational qualifications are critical, the study suggests
that experiential learning and hands-on training contribute significantly to sustainable
entrepreneurship. Future policies and training programs should therefore emphasize hands-on
experience, real-life problem solving, and exposure to market dynamics. This hands-on approach
can equip UMK participants with the tools they need to succeed in their entrepreneurial ventures
and foster an entrepreneurial mindset that is adaptable and resilient to market fluctuations.
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CHAPTER 5
CONCLUSIONS
5.1 Introduction
This chapter provides a detailed discussion and conclusion of the research findings and
provides a comprehensive analysis of the findings and their implications for the UMK program.
The study aims to examine the factors that influence the success and failure of UMKs and identify
the types of businesses that should be prioritized under the program. In addition, the importance of
this research lies in its potential to help underprivileged communities actively participate in the
industry despite various market constraints. The research questions were carefully addressed to
clarify whether demand- or supply-side approaches emerge from UMK activities and how these
strategies help microentrepreneurs overcome market challenges. Finally, this chapter provides
recommendations for future research efforts.
5.2 Summary Of Findings
In conclusion, the "Assessing the Welfare Micro-Entrepreneurs Business Success Factors" study
has provided valuable and in-depth insights into the factors that influence the success of micro-
enterprises participating in the UMK program in Sarawak, Malaysia. By employing a rigorous
research design and utilizing smart PLS analysis on quantitative data obtained through purposive
sampling, this research has shed light on the complex interplay of entrepreneur and business
factors that contribute to the performance of micro-entrepreneurs within the UMK program.
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The findings of the study have significant implications for various stakeholders involved in
supporting micro-enterprises and promoting economic empowerment among underprivileged
communities. One of the key findings is that micro-entrepreneurs' willingness to take risks is a
crucial factor influencing their success. Those who exhibited a higher propensity for risk-taking
tended to be more innovative, open to exploring new opportunities, and adaptable to changing
market conditions. This insight suggests that fostering a culture of entrepreneurship that
encourages calculated risk-taking and innovation can lead to more resilient and successful micro-
enterprises.
Another important factor that emerged from the analysis is the role of interest in business among
micro-entrepreneurs. Individuals who displayed a genuine passion and interest in their ventures
were more likely to invest time and effort into improving their skills, products, and services.
Nurturing and supporting this passion through training and mentorship programs can enhance the
overall performance and sustainability of micro-enterprises.
Skills in management were also identified as a critical success factor. Micro-entrepreneurs who
demonstrated effective management abilities, such as strategic planning, financial management,
and team coordination, achieved better outcomes in their businesses. Thus, providing training and
capacity-building initiatives that focus on enhancing managerial skills can empower micro-
entrepreneurs to run their enterprises more efficiently.
The study also highlighted the significance of self-belief and resilience among micro-
entrepreneurs. Individuals who possessed a strong belief in themselves and their abilities were
better equipped to face challenges and setbacks, ultimately leading to better business performance.
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Encouraging self-confidence and providing motivational support to micro-entrepreneurs can
contribute to building their resilience and determination to overcome obstacles.
On the business side, the location of the enterprise was found to be a critical determinant of
success. Micro-entrepreneurs who strategically chose their business locations based on market
demand, accessibility, and proximity to suppliers and customers experienced higher performance
levels. Policymakers and program implementers can assist micro-entrepreneurs in conducting
market research and assessing potential business locations to maximize their chances of success.
Furthermore, nurturing strong and positive relationships with customers, suppliers, and even
competitors was identified as a significant business factor. Micro-entrepreneurs who prioritized
building and maintaining these relationships tended to have a more stable customer base, access to
reliable suppliers, and opportunities for collaboration and growth. Business development
initiatives can be designed to encourage micro-entrepreneurs to invest in relationship-building as
part of their overall business strategy.
The use of a record system was also found to positively impact micro-enterprise success. Keeping
accurate records enables micro-entrepreneurs to track their business performance, identify areas
for improvement, and make informed decisions. Supporting micro-entrepreneurs in adopting
record-keeping practices and providing them with access to user-friendly tools or technologies can
be beneficial.
While the study has provided valuable insights, it is essential to acknowledge its limitations. The
research focused solely on quantitative data, and incorporating qualitative insights through
interviews or focus group discussions could have provided a more nuanced understanding of the
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experiences and perspectives of micro-entrepreneurs. Moreover, the study was conducted
exclusively in Sarawak, and the findings may not be entirely representative of micro-entrepreneurs
in other states or regions of Malaysia. Future research endeavors could explore regional variations
and cultural factors that may influence micro-enterprise success.
In conclusion, the "Assessing the Welfare Micro-Entrepreneurs Business Success Factors" study
contributes substantially to the field of micro-entrepreneurship and social empowerment
initiatives. By identifying the key factors that drive micro-enterprise success, this research
provides actionable insights for policymakers, program implementers, and stakeholders seeking to
create an enabling environment for micro-entrepreneurs to thrive. Through continued research and
evidence-based interventions, the UMK program and similar initiatives can play a pivotal role in
uplifting underprivileged communities and fostering inclusive economic growth in Malaysia. The
findings of this study serve as a stepping stone for future research to build upon, leading to more
comprehensive and effective strategies to empower micro-entrepreneurs and drive sustainable
economic development in the country.
5.3 Policy Recommendations
The findings from this study indicate several critical factors that contribute to the success of
Welfare Micro-Entrepreneurs (UMK) participants. Based on these findings, the following policy
recommendations are proposed to enhance the effectiveness of the UMK program in Sarawak,
Malaysia.
The results have significant implications for policymakers and program administrators. Enhancing
financial management training, providing more comprehensive business planning resources, and
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ensuring continuous support can substantially improve the success rates of UMK participants.
Policymakers should consider integrating these elements into the program design to foster a more
conducive environment for micro-entrepreneurs.
1. Enhancing Financial Management Training: Policymakers should focus on developing
financial literacy programs tailored to the needs of micro-entrepreneurs. This can help
participants better manage their resources and achieve financial stability.
2. Comprehensive Business Planning Resources: Providing templates and tools for
business planning can assist participants in developing robust business strategies. This
could include workshops and one-on-one mentoring sessions focusing on market analysis,
growth strategies, and risk management.
Continuous Support Mechanisms: Establishing a system for ongoing support, including regular
follow-up training and access to mentors, can help participants overcome challenges and sustain
their businesses. This support system should be easily accessible and tailored to the evolving
needs of the entrepreneurs.
5.3.1 Based on the Findings
1. Enhance Financial Management Training: Effective financial management practices are
crucial for the sustainability and growth of micro-enterprises. Studies have shown that financial
literacy is a key determinant of business success (Eisenhardt & Martin, 2000). Therefore, the
UMK program should incorporate comprehensive financial management training that covers
budgeting, financial planning, and accounting. By equipping participants with robust financial
skills, they can better manage their resources and ensure the profitability of their businesses.
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2. Strengthen Marketing Strategies: Robust marketing strategies are essential for micro-
entrepreneurs to penetrate and expand their market reach (Greenley & Foxall, 1995; Atuahene-
Gima, 1995). The program should offer training on market analysis, branding, and digital
marketing. By understanding and leveraging market dynamics, UMK participants can improve
their market presence and customer base, thereby increasing their sales and income.
3. Foster Social Capital: The Social Capital Theory highlights the importance of networks and
relationships in achieving entrepreneurial success (Bourdieu, 1986; Coleman, 1988; Putnam,
1993). The UMK program should facilitate networking opportunities among participants and with
successful entrepreneurs. Creating platforms for knowledge exchange and collaboration can
enhance access to resources and market opportunities, thereby improving business performance.
4. Promote Innovation and Risk-Taking: Encouraging innovation and risk-taking is vital for
entrepreneurial success (Schumpeter, 1934; Zimmerman, 2000). The program should foster a
culture that encourages creativity and experimentation. Providing support for product development
and offering guidance on risk management can help participants innovate and differentiate their
businesses in the market.
5. Continuous Support and Mentorship: Continuous mentoring and follow-up training are
essential for reinforcing the skills and knowledge gained during initial training (Portes, 1998;
Uzzi, 1997). The UMK program should establish a mentorship system where experienced
entrepreneurs can guide new participants. Regular follow-ups and refresher courses can ensure
that participants stay updated with the latest business practices and market trends.
6. Leverage Technology: Integrating digital tools and platforms can enhance the efficiency and
reach of micro-enterprises. The program should provide training on the use of technology for
business operations, such as online sales platforms, digital payment systems, and social media
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marketing. Technology can also facilitate continuous learning and support through online training
modules and virtual mentorship sessions.
5.4 Limitation Of Study
While this study provides significant insights into the success factors of Welfare Micro-
Entrepreneurs (UMK) under the Sarawak Social Welfare Department (JKMS), several limitations
should be acknowledged:
1. Sample Size and Representation: The study sample consisted of 166 UMK participants,
which, although providing valuable data, may not fully represent the diversity of all
welfare micro-entrepreneurs in Sarawak. The results might be influenced by the specific
characteristics of this sample, limiting the generalizability of the findings to the broader
population.
2. Self-Reported Data: The data collected through structured questionnaires relied on self-
reporting by participants, which may introduce biases such as social desirability bias or
recall bias. Participants might have over-reported positive outcomes or under-reported
challenges and failures.
3. Cross-Sectional Design: This study employed a cross-sectional design, capturing data at a
single point in time. This approach limits the ability to establish causality between the
identified success factors and business outcomes. Longitudinal studies would be more
effective in understanding the dynamic processes involved in entrepreneurial success over
time.
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4. Geographical Focus: The study focused exclusively on welfare micro-entrepreneurs in
Sarawak, which may limit the applicability of the findings to other regions with different
socio-economic and cultural contexts. Variations in regional policies, market conditions,
and support mechanisms might influence the success factors differently.
5. Scope of Variables: While the study explored a range of success factors, there may be
other relevant variables not included in the analysis. Factors such as technological
adoption, market competition, and external economic conditions could also play significant
roles in determining business success.
6. Measurement Limitations: The study relied on quantitative methods to assess success
factors, which may not fully capture the qualitative nuances of participants' experiences
and perceptions. Incorporating qualitative methods such as interviews or focus groups
could provide deeper insights into the challenges and success stories of UMK participants.
7. Program-Specific Factors: The study focused on participants within the UMK program,
and the findings may not be directly transferable to other micro-entrepreneurship programs
with different structures, support mechanisms, and objectives.
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5.5 Recommendation For Future Research
To address the limitations identified and further enrich the understanding of welfare micro-
entrepreneurship, the following recommendations for future research are proposed:
1. Longitudinal Studies: Conduct longitudinal studies to track the progress of UMK
participants over time. This approach would provide insights into the long-term impacts of
the UMK program and the sustainability of entrepreneurial success.
2. Larger and Diverse Samples: Expand the sample size to include a more diverse group of
participants from various regions and demographic backgrounds. This would enhance the
generalizability of the findings and provide a more comprehensive understanding of the
factors influencing entrepreneurial success.
3. Mixed-Methods Approach: Employ a mixed-methods approach that combines
quantitative and qualitative data collection techniques. Incorporating interviews, focus
groups, and case studies would provide a richer, more nuanced understanding of the
participants' experiences, challenges, and success factors.
4. Comparative Studies: Conduct comparative studies between different regions or between
participants of different micro-entrepreneurship programs. Such studies would help
identify best practices and contextual differences, offering valuable insights for program
improvements.
121
5. Technological and Market Factors: Investigate the impact of technological adoption and
market competition on the success of welfare micro-entrepreneurs. Understanding how
these external factors influence business outcomes could inform strategies to enhance
resilience and competitiveness.
6. Policy Impact Analysis: Analyze the impact of specific policy interventions on the
success of welfare micro-entrepreneurs. This could involve assessing the effectiveness of
financial incentives, regulatory changes, and support services provided by the government
and other stakeholders.
7. Gender and Social Dynamics: Explore the role of gender and social dynamics in shaping
entrepreneurial success. Understanding how gender-specific challenges and opportunities
affect welfare micro-entrepreneurs could inform targeted interventions to support female
entrepreneurs.
8. Impact of External Economic Conditions: Examine how broader economic conditions,
such as economic downturns or market fluctuations, impact the success and sustainability
of micro-entrepreneurs. This would help in designing programs that are resilient to external
economic shocks.
By addressing these recommendations, future research can build on the findings of this study,
contributing to a deeper and more comprehensive understanding of welfare micro-
122
entrepreneurship. This, in turn, would support the development of more effective programs and
policies aimed at fostering sustainable economic growth and poverty alleviation.
Future research should explore the long-term impacts of the UMK program on participants' socio-
economic status. Longitudinal studies can provide deeper insights into how micro-
entrepreneurship influences income levels, poverty reduction, and overall quality of life over time.
Additionally, comparative studies with similar programs in other regions can identify best
practices and areas for improvement.
In summary, the policy recommendations aim to enhance the UMK program by focusing on
financial literacy, marketing, social capital, innovation, continuous support, and technology
integration. By addressing these areas, the program can better support welfare recipients in their
transition to successful micro-entrepreneurs, contributing to poverty alleviation and sustainable
economic development in Sarawak.
While this study provides valuable insights into the success factors for UMK participants, several
limitations must be acknowledged. Addressing these limitations and exploring new avenues will
be crucial for future research in this area.
One significant limitation of this study is the sample size and its generalizability. The study
sample was limited to 166 UMK participants from Sarawak, which may not be representative of
all welfare micro-entrepreneurs in Malaysia or other regions. Future research should aim to
include a larger and more diverse sample to enhance the generalizability of the findings.
Expanding the study to encompass participants from different states and regions will provide a
more comprehensive understanding of the success factors influencing welfare micro-
entrepreneurs.
123
Additionally, this study employed a cross-sectional design, capturing data at a single point in time.
This approach does not allow for the examination of changes and developments over time. To
address this limitation, longitudinal studies are recommended to track the progress and success of
UMK participants over an extended period. Such studies will help identify the long-term effects of
various success factors and program interventions, offering deeper insights into their sustained
impact.
The reliance on self-reported data is another limitation of this study. Self-reported data can be
subject to social desirability bias and inaccuracies. Future research should incorporate multiple
data sources, including objective measures such as financial records and third-party evaluations, to
validate the self-reported data. This approach will enhance the reliability and accuracy of the
findings.
Furthermore, the scope of success factors examined in this study was limited to specific areas such
as financial management, marketing strategy, business planning, program support, and competitive
aggressiveness. Other potential factors that may influence success were not explored. Future
research should investigate additional factors, including psychological resilience, social support
networks, and technological adoption, to provide a more holistic understanding of the
determinants of success for welfare micro-entrepreneurs.
The context-specific nature of the findings, being specific to the UMK program in Sarawak, may
limit their applicability to other welfare micro-entrepreneurship programs. Comparative studies
across different programs and cultural contexts are recommended to identify common success
124
factors and program-specific influences. Such comparative studies will offer a broader perspective
on effective strategies for supporting welfare micro-entrepreneurs and contribute to the
generalizability of the findings.
In addition to addressing these limitations, future research should explore several new areas.
Investigating the role of psychological factors, such as entrepreneurial mindset, motivation, and
resilience, in determining the success of welfare micro-entrepreneurs is crucial. Understanding
these factors can help design targeted interventions to enhance entrepreneurial outcomes.
Moreover, the impact of technological adoption on business success warrants further investigation.
The adoption of digital technologies and e-commerce platforms can significantly influence the
performance and growth of welfare micro-entrepreneurs. Future studies should examine how
technological adoption impacts their performance, identifying barriers and facilitators in the
process.
Longitudinal evaluations of specific program interventions, such as financial literacy training,
mentorship programs, and access to capital, are also necessary. Assessing the effectiveness of
these interventions over time will provide evidence-based insights for refining and improving
program components, ensuring they effectively support participants in achieving sustainable
success.
Exploring gender and cultural influences on entrepreneurial success is another important area for
future research. Investigating how gender dynamics and cultural norms affect the experiences and
125
outcomes of welfare micro-entrepreneurs can identify strategies to address gender-specific
challenges and promote inclusivity in entrepreneurship programs.
Finally, assessing the broader impact of policy changes on welfare micro-entrepreneurship
programs can provide valuable insights for policy development. Future studies should examine
how different policy environments and support mechanisms influence the success of participants,
informing the creation of supportive policies that foster entrepreneurial growth and economic self-
sufficiency.
By addressing these limitations and exploring the recommended areas for future research, scholars
and practitioners can develop a deeper understanding of the factors that drive the success of
welfare micro-entrepreneurs. This knowledge will contribute to the design of more effective
programs and policies that empower welfare recipients to achieve sustainable economic self-
sufficiency.
126
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kesejahteraan, tingkah laku dan pengalaman kewangan dalam kalangan peserta Azam
Tani FAMA (Productive welfare: Well-being level and relationships, financial behavior
and experiences among FAMA participants of Azam T). Jurnal Psikologi Malaysia,
34(2).
138
APPENDICES
Dear Respondent,
This questionnaire is designed to help the researcher conduct a research survey entitled Assessing
The Welfare Micro-Entrepreneurs Business Success Factors. The objectives of this research are to
investigate the relationship between the five dimensions of entrepreneurial orientation
(innovativeness, pro-activeness, risk-taking, competitive aggressiveness, and autonomy) on
innovation and business performance after receiving the financial grant.
Your participation is highly appreciated. This is an anonymous survey where your responses will
not be individually identified. Please complete the survey with utmost honesty. Your response will
be kept confidential.
Your kind cooperation is very much appreciated. Thank you.
Matric No: 20040021

Program: Doctorate Business Administration
No Hp: 013-8222340
Email : myaakubsa@gmail.com
139
SECTION A: RESPONDENT’S DEMOGRAPHIC PROFILE/ PROFIL DEMOGRAFI
RESPONDEN
Bahagian : ____________________________
Daerah : ____________________________
Kumpulan Sampel : UMK Berjaya UMK Tidak Berjaya
UMK Sedang Dibimbing
Kategori Perniagaan : _____________________________
Anggaran Purata Pendapatan Bulanan UMK : RM ____________________
1. Nama Responden :
_________________________________________________
2. No Kad Pengenalan :
________________________________________________
3. Jantina : Man Women
4. Umur : ______________ Tahun
5. Bangsa : Malay Chinese
Iban Bidayuh
Melanau Orang Ulu
Lain – Lain : ________________________
6. Agama : Islam Buddha
Kristian Lain -Lain : _______________
7. Nombor Telefon : _________________________
8. Status Perkahwinan : Bujang
Kahwin
Duda / Janda
140
SECTION B: BUSINESS BACKGROUND/ LATARBELAKANG PERNIAGAAN
Type of Business / Jenis Perniagaan
Agriculture / Pertanian
Restaurant and related / Restoran dan berkaitan
Services / Perkhidmatan
Construction / Pembinaan
Craft / Kraftangan
Pastry / Pastri
141
Farming / Perternakan
Others / Lain-Lain ; Sila Nyatakan _________________________
Years of Business / Tahun Perniagaan
Less than 1 Year / Kurang dari 1 Tahun
1 – 5 years / 1 – 5 tahun
6 – 10 years / 6 – 10 tahun
142
11 – 15 years / 11 – 15 tahun
More than 16 years / Lebih dari 16 tahun
SECTION C: ENTREPRENEURIAL ORIENTATION/ORIENTASI KEUSAHAWANAN
Please circle (O) the number in the box to indicate how far you agree or disagree with each statement by
using the following statement
Sila bulatkan (O) nombor dalam kotak menandakan sejauh mana anda setuju atau tidak setuju dengan
kenyataan dibawah
1 2 3 4 5
Strongly Disagree Disagree / Neutral/ Agree / Strongly Agree /
/ Sangat Tidak Tidak Bersetuju Neutral Bersetuju Sangat Bersetuju
Bersetuju
INNOVATIVENESS/INOVASI
IV1 In my business, very many new product lines or services has marketed/
Dalam perniagaan saya, terdapat banyak barisan produk atau

1 2 3 4 5
perkhidmatan baharu telah dipasarkan
143
IV2 In my business, changes in product or service lines have been mostly of
being quite dramatic/

1 2 3 4 5
Dalam perniagaan saya, perubahan dalam barisan produk atau
perkhidmatan kebanyakannya agak dramatic/ketara
IV3 In my business, there is a long-term commitment to invest in new
technology, R&D, and continuous improvement /

1 2 3 4 5
Dalam perniagaan saya , terdapat komitmen jangka panjang untuk melabur
dalam teknologi baharu, R&D dan penambahbaikan berterusan
IV4 My business actively introduces improvements and innovations/

1 2 3 4 5
Perniagaan saya secara aktif memperkenalkan penambahbaikan dan inovasi
IV5 My business is creative in its methods of operation /

1 2 3 4 5
Perniagaan saya kreatif dalam kaedah operasinya
PROACTIVENESS/KEAKTIFAN
PR1 My business typically initiating action which the competition then responds to
1 2 3 4 5
Perniagaan saya biasanya akan memulakan tindakan yang kemudiannya
bertindak balas terhadap persaingan
PR2 My business is very often the first business to introduce new
products/services, administrative techniques, operating technologies, etc. /
Perniagaan saya selalunya merupakan perniagaan pertama

1 2 3 4 5
yang memperkenalkan produk/perkhidmatan baharu, teknik
pentadbiran, teknologi pengendalian, dsb.
PR3 My business is close monitoring of technological trends and identifying

future needs of customers /
Perniagaan saya memantau dengan rapat trend teknologi dan mengenal
pasti keperluan masa depan pelanggan 1 2 3 4 5
PR4 My business excels at identifying opportunities /

1 2 3 4 5
Perniagaan saya cemerlang dalam mengenal pasti peluang
144
RISK-TAKING / PENGAMBILAN RISIKO
RT1 My business invests in high-risk projects (with chances of very high return)/
Perniagaan saya melabur dalam projek berisiko tinggi (dengan peluang

1 2 3 4 5
pulangan yang sangat tinggi)
RT3 My business commits a large portion of its resources in order to grow

1 2 3 4 5
Perniagaan saya menggunakan sebahagian besar sumbernya untuk
berkembang
RT4 My business invests in major projects through heavy borrowing
1 2 3 4 5
Perniagaan saya melabur dalam projek utama melalui peminjaman berat
RT5 In my business, people in our business are encouraged to take calculated
risks with new ideas

1 2 3 4 5
Dalam perniagaan saya , orang dalam perniagaan saya digalakkan untuk
mengambil risiko yang dikira dengan idea baharu
RT6 My business emphasizes both exploration and experimentation for

opportunities
Perniagaan saya menekankan kedua-dua penerokaan dan percubaan untuk 1 2 3 4 5
melihat peluang
COMPETITIVE AGGRESSIVENESS / DAYA SAING YANG KOMPETITIF
CA1 My business typically seeks to a competitive “undo-the-competitors” posture
Perniagaan saya lazimnya mengamalkan postur yang sangat kompetitif, 1 2 3 4 5

'membatalkan pesaing'
CA2 My business is very aggressive and intensely competitive

1 2 3 4 5
Perniagaan saya sangat agresif dan sangat kompetitif
CA3 My business adopts a price-cutting strategy to enhance a competitive position

Perniagaan saya mengamalkan strategi pemotongan harga bagi
meningkatkan kedudukan daya saing
1 2 3 4 5
CA4 My business copies the business practices or techniques of successful
competitors to enhance a competitive position
1 2 3 4 5
Perniagaan saya meniru amalan perniagaan atau teknik pesaing yang
berjaya untuk meningkatkan kedudukan daya saing
145
CA5 My business use of unconventional strategies to challenge competitors
Perniagaan saya menggunakan strategi bukan konvensional untuk
mencabar pesaing 1 2 3 4 5
FINANCIAL PLANNING / PERANCANGAN KEWANGAN
FP1 My business records financial transaction/ Perniagaan saya merekod transaksi

kewangan
1 2 3 4 5
FP2 I spend on priority for my business / Saya berbelanja
mengikut keutamaan untuk perniagaan saya

1 2 3 4 5
FP3 My business’s monthly sales stock always has a surplus
/Stok jualan sebulan perniagaan saya sentiasa ada lebihan
1 2 3 4 5
146
SECTION D: INNOVATION PERFORMANCE/PRESTASI INOVASI
How would you rate your business Innovation performance /
Bagaimana anda menilai prestasi inovasi perniagaan anda
1 2 3
4 5
Strongly Disagree Disagree / Neutral/
/ Sangat Tidak Tidak Neutral Agree / Strongly Agree /
Bersetuju Bersetuju
Bersetuj Sangat Bersetuju
u
INNOVATION PERFORMANCE/ PRESTASI
INNOVASI
IP1 My business creates more brand-new products as compared with the main
competitors
Perniagaan saya mencipta lebih banyak produk baharu berbanding
pesaing utama 1 2 3 4 5
IP2 My business develops new products with higher brand-new functions as
compared with the main competitors

1 2 3 4 5
Perniagaan saya membangunkan produk baharu dengan fungsi baharu
yang lebih tinggi berbanding pesaing utama
IP3 My business frequently introduces new technologies into existing industries

Perniagaan saya kerap memperkenalkan teknologi baharu ke dalam
ndustry sedia ada 1 2 3 4 5
IP4 My business often enters a new market by developing radically new products
Perniagaan saya sering memasuki pasaran baru dengan membangunkan
produk. Baru secara radikal 1 2 3 4 5
IP5 My business develops more new products with different patterns

Perniagaan saya membangunkan lebih banyak produk baharu dengan
corak yang berbeza
147
1 2 3 4 5
IP6 My business refines and improve more products and processes

Perniagaan saya memperhalusi dan menambah baik lebih banyak produk
dan proses 1 2 3 4 5
IP7 My business depends more on existing technologies

1 2 3 4 5
Perniagaan saya lebih bergantung kepada teknologi sedia ada
IP8 My business focus on more new products with less innovativeness
Perniagaan saya memberi tumpuan kepada lebih banyak produk baharu

1 2 3 4 5
dengan kurang inovasi
148
SECTION E: BUSINESS PERFORMANCE / PRESTASI PERNIAGAAN
How would you rate your business’s business performance based on your perception /
Bagaimana anda menilai prestasi perniagaan perniagaan berdasarkan persepsi anda
1 2 3 4 5
Strongly Disagree Disagree / Neutral/ Agree / Strongly Agree /
/ Sangat Tidak Tidak Neutral Bersetuj Sangat Bersetuju
Bersetuju Bersetuju u
BUSINESS PERFORMANCE / PRESTASI
PERNIAGAAN
FP1 Over the past three years, my business sales have increased 1 2 3 4 5
Sepanjang tiga tahun yang lalu, jualan perniagaan saya telah meningkat
FP2 Over the past three years, my business net profits have increased 1 2 3 4 5
Sepanjang tiga tahun yang lalu, untung bersih perniagaan saya telah
meningkat
FP3 Over the past three years, my business’s current ratio has been on the rise
Sepanjang tiga tahun yang lalu, nisbah semasa perniagaan saya telah 1 2 3 4 5
meningkat
FP4 Over the past three years, my business’s investment returns have been on
the rise
Sepanjang tiga tahun yang lalu, pulangan pelaburan perniagaan saya
149
telah meningkat 1 2 3 4 5
FP5 Over the past three years, my business’s market share has been on the rise 1 2 3 4 5
Sepanjang tiga tahun yang lalu, syer pasaran perniagaan saya telah
meningkat
NFP1 Business’s members are satisfied with my business 1 2 3 4 5
Ahli perniagaan berpuas hati dengan perniagaan saya
NFP2 Customers are satisfied with my business 1 2 3 4 5
Pelanggan berpuas hati dengan perniagaan saya
NFP3 The brand image of my business is good 1 2 3 4 5
Imej jenama perniagaan saya adalah baik
NFP4 The reputation of my business is good 1 2 3 4 5
Reputasi perniagaan saya adalah baik
NFP5 My products (services) are more competitive than my competitors are
Produk (perkhidmatan) perniagaan saya lebih kompetitif daripada pesaing 1 2 3 4 5
saya
MARKETING STRATEGY / STRATEGI PEMASARAN
MS1 I have problems to market my new products / Saya mempunyai masalah dalam
memasarkan produk terbaharu saya
MS2 I don’t have any problems in doing aggressive marketing to make sure my stock
is sold / Saya tidak menghadapi sebarang masalah dalam melakukan pemasaran
yang agresif untuk memastikan stok saya terjual
150
MS3 I market products based on market demand/ Produk saya pasarkan berdasarkan
kepada permintaan pasaran
151

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