Business Performance of Micro and Small Entrepreneurs Due to Government Support, Training, Passion, and Infrastructure: A Comparative Study Between Malaysia and Indonesia

Muhamad Khalil Omar, Norashikin Hussein, Zarith Delaila Abd Aziz, Nor Azian Abdul Rahman, Andryan Setyadharma and Heri Yanto
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Muhamad Khalil Omar: Faculty of Business and Management, University Technology MARA, Cawangan Selangor, Kampus Puncak Alam, 42300, Bandar Puncak Alam, Selangor, Malaysia
Norashikin Hussein: Faculty of Business and Management, University Technology MARA, Cawangan Selangor, Kampus Puncak Alam, 42300, Bandar Puncak Alam, Selangor, Malaysia
Zarith Delaila Abd Aziz: Faculty of Business and Management, University Technology MARA, Cawangan Selangor, Kampus Puncak Alam, 42300, Bandar Puncak Alam, Selangor, Malaysia
Nor Azian Abdul Rahman: Faculty of Business and Management, University Technology MARA, Cawangan Selangor, Kampus Puncak Alam, 42300, Bandar Puncak Alam, Selangor, Malaysia
Andryan Setyadharma: Faculty of Economics, Universitas Negeri Semarang, Indonesia
Heri Yanto: Faculty of Economics, Universitas Negeri Semarang, Indonesia

International Journal of Research and Innovation in Social Science, 2025, vol. 9, issue 5, 2616-2626

Abstract: Micro and small entrepreneurs in Malaysia and Indonesia play a crucial role in the economies of both countries. These entrepreneurs typically operate with limited resources and aim to generate income and contribute to their local economies. In this study, a few factors, i.e., government support, training, passion, and infrastructure, were studied to identify their impacts on the business performance among a hundred micro and small entrepreneurs in Malaysia and Indonesia. The results showed that passion was the most significant predictor of business performance, followed by infrastructure. While government support and training do not have any significant effects. Few independent sample t-tests were also conducted, and Malaysian entrepreneurs were found to have significantly more government support, training, and passion than their Indonesian counterparts. While family businesses or those who were funded by the government were discovered to have significantly better business performance, government support, training, passion, and infrastructure in comparison with non-family or non-funded businesses. Discussion, suggestions for future research, as well as limitations, have also been discussed.

Date: 2025
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