preview

Mamak stall

Better Essays

Comparative analysis of managerial practices in small medium enterprises in Malaysia
Abu Bakar Abdul Hamid
Rohaizat Baharun
Noor Hazarina Hashim
Faculty of Management and Human Resource Development
Universiti Teknologi Malaysia
Abstract
The purpose of this paper is to examine the existing practice in managerial strategic and tools being used and problems faced by local small medium enterprises (SMEs) in the manufacturing sector. With today’s arduous competition, it requires the SMEs to tune its current business practice to cope with the rapid changes in the business environment. Due to the rapid changes, SMEs’ managers need to equip themselves with new knowledge and ideas to promote effective managerial practices. In other …show more content…

SMEs would produce quality and high value-added products and services for both the domestic and export markets, as well as contribute significantly to the
Gross Domestic Product; and
d. SMEs would increase productivity through the use of modern technology and management that would increase the SMEs competitiveness in the export market. Review of the literature
The SMEs sector in Malaysia
In Malaysia, The Ministry of International Trade and Industry (MITI) redefined SMEs as: (i) A small scale firm “with less than 50 full-time employees, and with an annual turnover of not more than RM10 million” or
(ii) A medium scale company “with between 51 and 150 employees, and with an annual turnover of between RM10 million and RM25 million”.
In practice, both quantitative and qualitative criteria (Mohd Khairuddin and Syed Azizi
2003) or economic and statistical definition (The Bolton Committee, 1971) are used to define an SME. However, in Malaysia, only quantitative criteria are chosen to define an SME such as the one defined by MITI. In the authors’ opinion, there has been no universally accepted definition of what an SME is and a wide range definition is used.
In research works for SME, majority of SME definition were based on operational definitions (see works for example Dart, Ng and Sarkar, 1990; Mohd. Khairuddin,
2000).
According to Mohd Khairuddin (2000), the SMEs in Malaysia may

Get Access