Determining Competitiveness of Micro Entrepreneurs

Abstract

Entrepreneurial motivation is a critical element in enhancing the competitiveness of micro entrepreneurs. The Malaysian government has taken several initiatives in providing motivational training through several federal and state agencies such as Gagasan Badan Ekonomi Melayu (GABEM), Yayasan Pembangunan Usahawan (YPU), Majlis Amanah Rakyat (MARA) and Yayasan Pembangunan Keluarga (YPK). The issue remains whether the micro entrepreneurs are able to sustain their motivation in improving their business competitiveness that will help them penetrate new and bigger markets. In light of this issue, the authors postulate three entrepreneurial success factors and internal motivation as the mediating variable in determining the competitive level of the micro entrepreneurs. A total of 520 micro-entrepreneurs were selected from seven districts in Terengganu, Malaysia. The three steps regression analysis revealed that internal motivation partially mediates all three entrepreneurial success factors, effective management, personal quality and family support. These findings revealed that the combination of internal motivation with other entrepreneurial success factor would be critical in creating sustainable competitive advantage among miero entrepreneurs. The authorities responsible for the development of the entrepreneurs would therefore be wise to design better motivation programs that will sustain their competitiveness in the long run.