The Entrepreneurship Ecosystem in Malaysia: the Global Entrepreneurship Index (Gei) Analysis

Abstract

The purpose of this research is to identify the entrepreneurship ecosystem in Malaysia based on PFP methodology from the Global Entrepreneurship Index (GEI). As one of the top performing economies in Asia, the Global Entrepreneurship Index (GEI) score of Malaysia stood in the ‘middle rank’ from 2012 to 2016 (ranked 46th out of 96 surveyed countries). The analysis has revealed that Malaysia has two strong pillars that are unique to the country, namely ‘human capital’ and ‘process innovation’. There are seven other pillars that did not perform well, namely, technology absorption pillar, high growth, risk capital, cultural support, product innovation, start-up skills, and internationalisation. In order to improve these areas, the Malaysian government needs to enact ‘supportive regulation’ for entrepreneurs, such as promoting entrepreneurs in external events, tax holidays, a less complicated business permit application process, ease of access to bank loans, and business training.