Ethnic Entrepreneurs in Malaysia: Motivations and Challenges

Abstract

There is a growing number from 1,002,000 to 1,169,000 (2010 to 2014) of ethnic entrepreneur‟s
involvement in Malaysia especially in small business activities. It is also estimated in 2015 that 6.7
million ethnic entrepreneurs concentrating in all walks of economics activities in the country. Some of
them coming as an under-skilled migration, however, ending up with started up their own businesses as
jobs opportunities were found to be hard for them. Moreover, certain businesses are changing hands from
the local owners to ethnic owners. While this issue has been discussed, unfortunately, only few the study
attempts to understand the motivation and challenges of ethnic entrepreneurs that help to promote the
economic growth. Therefore, the objectives of this study are twofold: (1) To explore the motivational
factors faced by ethnic entrepreneurs (2) To understand the challenges they might face in Malaysia. To
serve its objectives, a qualitative method is needed to be employed. A semi-structured interview will be
conducted among the ethnic entrepreneurs (owners/managers of businesses) to document their views
towards the ethnic entrepreneur‟s motivation and challenges. The practical implication is contributed to
the literature review of ethnic entrepreneurship and reviewing the Industrial Relations Act 1967 and
Employment Act 1955 to ensure the law is in line with needs of local and foreign employees-employers,
as well as the needs of an industrializing nation's workforce.