Financial Management Knowledge Among Malay Family-Owned Business (MFOBs) Entrepreneurs

Abstract

Financial management is one of the ways for entrepreneurial to remain profitable and solvent. Each year thousands of businesses fail because of poor financial management. For the major small business’s owner especially Malay family-owned business (MFOBs), financial management does not seem as a necessary step to build a strong financial structure for its business. The process of financial management is to help entrepreneurs determine needs, set goals, establish objectives and devise plans of action. Understanding an entrepreneur’ knowledge is a critical step in being more successful in business world. The objective of this study is to examine financial management knowledge in Malay family-owned business. One hundred entrepreneurs were interviewed in this research using questionnaires. The sampling method that that was used in this research paper is qualitative sampling using simple random sampling technique. Financial management knowledge were measured based on fifteen items in financial management knowledge using Likert scale (1= strongly disagree, 2= disagree, 3= partially, 4= agree, 5= strongly agree). The socio demographic factor of entrepreneurs consist of gender, age, marital status, education level, business period, types of business and fund for the business. SPSS were used to analyze data collection, select cases, and random sample, approximate or exact need for an electronic SPSS data. The study found that majority respondents had acquired moderate knowledge in financial management which indicates a high score of in knowledge. As a conclusion, knowledge and skills are related to one’s experience. Knowledge is important to establish whether that someone really knows what to do with the business they are involved in. Well informed entrepreneur, know their strength and weakness, both on a personal level and business level.