Entrepreneurial Competencies Factors Influencing SMEs Entrepreneurial Performance in Malaysia: A Conceptual Framework

Abstract

The number of new entrepreneurs in SMEs continues to rise around the world. The goal of the study was to examine the intellectual capital element of entrepreneurs, such as attitude, knowledge, business relationship and digitalization, through the lens of Intellectual Capital (IC) Theory, in order to better understand how these factors contribute to the performance of SMEs in Malaysia. This study was driven by the spectacular growth of entrepreneurs and a vacuum in the present business performance literature. Although the growth in numbers is increasing to certain extend, in contrast, in term of sustainability spectrum entrepreneurs in Malaysia are seeing a substantial drop in performance, which is leading to the closure of most businesses. The lack of entrepreneurial competencies due to weak intellectual capital elements perceived as the influencing factor to such an unwanted phenomenon. This study will assist entrepreneurs in developing platforms to improve their business by recognizing and refine their entrepreneurial competencies that matters to sustain, develop and perform well in their business and promote Malaysia's economy. The study concluded that entrepreneurial intellectual capital elements have a substantial impact on entrepreneurial performance, and that any economy aiming to develop and grow entrepreneurs should embrace this intellectual capital oriented elements discussed in this study for a greater entrepreneurial performance. Secondary sources of data evaluated in detail. The proposed procedure for the data collection for this study approached qualitatively with nominal group interview technique. Three nominal groups comprising of ten members each randomly may be selected from the list obtained from SME Corporations Malaysia for a face-to-face interview session to comprehend the reality of the scenario that being scrutinized and support the arguments. Provide the insight into intellectual capital factors that can help SME operators in Malaysia strengthen their entrepreneurial competencies and grow their businesses. Observe entrepreneurial traits such as attitude, knowledge, willingness to develop business relationship and digitalization, through the lens of Intellectual Capital (IC) Theory for better SME performance