Level of success of halal small and medium entrepreneurs in Malaysia

Abstract

The importance of Small Medium Enterprises (SMEs) for the economy has been realized and identified and the Malaysian government will have to play a crucial function in generating an enabling conducive scenario for SMEs. In 2010, a total of 354 programs with an assurance of RM 6.02 billion were under implementation for the development of high-performing and elastic SMEs. The administration will continue its pursuit of developing policies, initiatives and programs that would intensify support for the local SMEs. However, as they are designed to assist SMEs in general, it is imperative to see if the same applies to SMEs operating in the halal environment. In this study, we examined what variables constitute the level of success and also the characteristics of halal entrepreneurs. Results show that most of the respondents perceived that they are stronger than their competitor in all items except the export market. More than 80% of the respondents also agreed that they possess the personal characteristics that constitute halal entrepreneurs. Therefore, it can be concluded that, specific attention should be given to the outcome of this study in which SMEs operating in halal environment have a different set of environmental variables that can promote success if the country is serious on building successful halal SMEs to compete in the global market.