Micro-enterprise development training and entrepreneurial competencies among low-income households in Malaysia

Abstract

Purpose Low-income households form a significant portion of the Malaysian population. To improve the socio-economic condition of low-income households, development organizations in Malaysia offer a wide range of development trainings, discussions and group or center meetings. This study aims to examine the impact of enterprise development training programs on entrepreneurial competencies among Peninsular Malaysia microentrepreneurs. Design/methodology/approach Adopting a cross-sectional design, the authors collected data from 300 randomly selected microentrepreneurs from the list of microentrepreneurs provided by eKasih (the National Poverty Data Bank), across four states of Peninsular Malaysia. Quantitative data were collected through structured interviews with the respondents from October to November 2017. Findings The findings revealed that enterprise development training programs significantly affected three of six entrepreneurial competencies (i.e. opportunity recognition competency, organizing competency and relationship competency). These findings highlight the importance of enterprise development training programs towards microentrepreneurs in increasing their competencies. Originality/value Through its insights, the study enriches the understanding of low-income communities in emerging economies, while offering significant practical implications. Based on findings, it is recommended that development organizations should therefore continue the current microenterprise development training programs. With improved entrepreneurial competencies, microentrepreneurs can thrive amidst competition yet sustaining business performance.