ENTREPRENEURSHIP ENTREPRENEURIAL SOURCES OF CAPITAL AND SUPPORT

PB201

ENTREPRENEURIAL SOURCES OF CAPITAL AND SUPPORT

Objective; Distinguish Business Support Systems : jusfy the sources of capital for entrepreneurship acvies classify types of business support

ENTREPRENEURIAL SOURCES OF CAPITAL AND SUPPORT

Objective; Distinguish Business Support Systems :

the sources of capital for entrepreneurship activities

jusfy classify types of business support

the sources of capital for entrepreneurship activities

PERSONAL FUNDS / PERSONAL SAVINGS

GOVERNMENT AGENCIES

FAMILY AND FRIENDS

SOURCES OF CAPITAL
GOVERNMENT LOAN RETIREMENT ACCOUNTS / PENSION FUNDS / EPF BANKS AND OTHER FINANCIAL INSTITUTIONS

PERSONAL FUNDS / PERSONAL SAVINGS

First source of capital Entrepreneur to ensure the business is feasible in order to safeguard himself from losing everything

FAMILY AND FRIENDS

Easier, based on personal relationship and trust Entrepreneur to ensure repays his loans to family or friends as soon as possible to avoid awful relationship

Enough fund to start up a business However, if entrepreneur fails in the business his life will be more economically after retirement
FAMILY AND FRIENDS

RETIREMENT ACCOUNTS / PENSION FUNDS / EPF

External funding, incurred cost; interest Can be a burden to a new business if the entrepreneur lack of discipline in finance
BANKS AND OTHER FINANCIAL INSTITUTIONS

LONG-TERM FINANCING MEDIUMTERM FINANCING SHORT -TERM FINANCING

Period : 5 to 25 years Exp : Commercial Mortgage, Long-term Loan

Period : 1 8 years Exp : Hire Purchase, Lease, Loans

Period : Less than 1 year Exp : Loans

Government encourage investment and development, subsidized loans, reduce interest rates and make debts available to business ventures Government also provide support through agencies where entrepreneur can apply for loans, grants etc

SME Bank

SME Corp. Malaysia GOVERNMENT LOAN

GOVERNMENT AGENCIES

MTDC Malaysian Technology Development Corporation PNB Perbadanan Malaysia Berhad

MARA Majlis Amanah Rakyat

MIDA Malaysian Industrial Development Authority

ENTREPRENEURIAL SOURCES OF CAPITAL AND SUPPORT

Objective; Distinguish Business Support Systems :

justify the sources of capital for entrepreneurship activities classify

types of business support

1. FINANCIAL SUPPORT 8. INFORMATION SUPPORT 2. TECHNICAL AND TECHNOLOGICAL SUPPORT

7. RESEARCH AND PROJECT RECOGNITION

BUSINESS SUPPORT SYSTEM

3. ENTREPRENEUR AND MANAGEMENT TRAINING

6. MARKETING SUPPORT 5. INFRASTRUCTU RE SUPPORT (LOCATION AND PREMISE)

4. EXTENSION AND ADVISORY SERVICES

BUSINESS SUPPORT SYSTEM

1 FINANCIAL SUPPORT

Financial credits Fixed assets financing Establishing factory Buying office equipment, machinery etc

BUSINESS SUPPORT SYSTEM

1 FINANCIAL SUPPORT

http://www.malaysia.gov.my/EN/Relevant%20Topics/IndustryInMalaysia/ Business/IKS/IKSFinancingAndGrant/Pages/IKSFinancingAndGrant.aspx

AGENCY MARA Commercial Banks

BPIMB (Bank Pembangunan dan Infrastruktur Malaysia Berhad) MIDF (Malaysian Industrial Development Finance Berhad) AGRO Bank Malaysia (fka Bank Pertanian Malaysia)

FINANCIAL FACILITY Financial credits and equipments to SME entrepreneurs Financial credits allocated by Central Bank of Malaysia (BNM) to qualified applicants Financial credits to industrial business

Fixed assets financing to manufacturers

Financial credits and equipment to agriculture-related industries

BUSINESS SUPPORT SYSTEM

2 TECHNICAL AND TECHNOLOGICAL SUPPORT

Entrepreneurs increase technical knowledge by attending educational courses Exposed to the latest production methods and systematic management Several different scheme such as development of product quality using technology

BUSINESS SUPPORT SYSTEM

2 TECHNICAL AND TECHNOLOGICAL SUPPORT

AGENCY PORIM (Palm Oil Research Industry Malaysia)

TECHNICAL ASSISTANCE Develops quality products using the latest technology advancement

FRIM Promotes sustainable management and (Forest Research Institute of Malaysia) the optimal use of forest resources by generating knowledge and technology through research, development and application MIMOS Promotes innovation in information (Malaysian Institute of Microelectronic technology. Strives to be premier System) applied research centre in frontier technologies

BUSINESS SUPPORT SYSTEM

3 ENTREPRENEUR AND MANAGEMENT TRAINING

To train entrepreneurs obtain necessary skills Build entrepreneurs confidence and give encouragement

BUSINESS SUPPORT SYSTEM

3 ENTREPRENEUR AND MANAGEMENT TRAINING http://www.malaysia.gov.my/EN/Relevant%20Topics/IndustryInMalays ia/Business/IKS/IKSTrainingProgramAndDevelopment/Pages/IKSTrainin gProgramAndDevelopment.aspx

AGENCY MARA (Majlis Amanah Rakyat) MEDEC (Malaysian Entrepreneurship Development Centre) SEDC (State Economic Development Corporation)

ENTREPRENEUR AND MANAGEMENT TRAINING Provides training and guidance to SME entrepreneurs so that they are highly skilled in their area of interest Plans and implements entrepreneurship development programmes such as training, education, research and consultancy Its general aims is to provide and promotes commercial, industrial and socio-economic development in the states Provides training in enhancing quality and productivity, consultation services and guidance in Total Quality Management (TQM)

NPC (National Productivity Corporation)

BUSINESS SUPPORT SYSTEM

4 EXTENSION AND ADVISORY SERVICES

Agencies involved in consulting and monitoring the implementation of project To ensure no interruption in the business progress

BUSINESS SUPPORT SYSTEM

4 EXTENSION AND ADVISORY SERVICES

http://www.malaysia.gov.my/EN/Relevant%20Topics/Industr yInMalaysia/Business/IKS/IKSAdvisoryServiceAndConsultatio n/Pages/IKSAdvisoryServiceAndConsultation.aspx

AGENCY MARA (Majlis Amanah Rakyat) MPOB (Malaysian Palm Oil Board) FAMA (Federal Agricultural Marketing Authority)

EXTENSION AND ADVISORY ASSISTANCE Apprenticeship Training Scheme, Technical Entrepreneurs Programme (Technopreneurs) Technical Advisory Services

Enhancement of Product Image and Presentation, Vendor Programme, Development of Quality Product Follow-up on entrepreneurial training and development programme

DOA (Department of Agriculture)

BUSINESS SUPPORT SYSTEM

5 INFRASTRUCTURE SUPPORT (LOCATION AND PREMISE)

Provide suitable business location or equipped premise including utilities To reduce the entrepreneurs problem related to location and premise

BUSINESS SUPPORT SYSTEM

5 INFRASTRUCTURE SUPPORT (LOCATION AND PREMISE)

http://www.malaysia.gov.my/EN/Relevant%20Topics/IndustryInMalays ia/Business/IKS/IKSBusinessPremise/Pages/IKSBusinessPremise.aspx

AGENCY UDA (Urban Development Authority)

INFRASTRUCTURE ASSISTANCE Provides and caries out projects at urban settlements in term of development, housing, commercial and industrial issues

MARA (Majlis Amanah Rakyat)

Provides business sites to carry out business activities

SEDC (State Economic Development Corporation)

Develop basic utilities and areas like pathway and recreational facilities

BUSINESS SUPPORT SYSTEM

6 MARKETING SUPPORT

Support services in marketing distribution To help entrepreneur market his product locally and internationally

BUSINESS SUPPORT SYSTEM

6 MARKETING SUPPORT

http://iks.com.my/

AGENCY FAMA (Federal Agricultural Marketing Authority) MATRADE (Malaysian External Trade Development Corporation)

MARKETING ASSISTANCE Markets agricultural products locally and abroad Exposes the entrepreneur to available business

MITI (Ministry of International Trade and Industry)

In charge of affairs related to foreign trade, high technology, environmental protection and industrial location, energy and other areas

BUSINESS SUPPORT SYSTEM

7 RESEARCH AND PROJECT RECOGNITION

Helps entrepreneur to carry out research Research and analysis will be performed include project possibilities, marketing research and research on technology Helps entrepreneur to increase efficiency and as well as better quality products

BUSINESS SUPPORT SYSTEM

7 RESEARCH AND PROJECT RECOGNITION

AGENCY MARDI (Malaysian Agricultural Research and Development Institute) RRIM (Rubber Research Institute Malaysia) MPOB (Malaysian Palm Oil Board)

RESEARCH ASSISTANCE Carries out research on the output of agricultural products, improves the quality of agricultural products and produces new seeds for farmers Carries out research on the quality of rubber and produces new rubber-based products Carries out research on products produced from the output of palm oil, spreads over the market of palm oil and improves the quality of palm oil Focus on discovering and developing new technologies to enable industries to move up the value chain

SIRIM Berhad (Standard and Industrial Research Institute of Malaysia)

BUSINESS SUPPORT SYSTEM

8 INFORMATION SUPPORT

Offered to entrepreneur in the form of business opportunity, statistics, discovery, research and development and technological development Most of agencies have their own collection of information for general usage

http://pmr.penerangan.gov.my/index.php/component/content/article/81-rad/1233iks.html http://www.smecorp.gov.my/

BUSINESS SUPPORT SYSTEM

8 INFORMATION SUPPORT

AGENCY FRIM (Forest Research Institute of Malaysia) MIDA (Malaysian Industrial Development Authority)

MATRADE (Malaysian External Trade Development Corporation) SIRIM (Standard and Industrial Research Institute of Malaysia)

INFORMATION SUPPORT Provides research and development, transfer of technology and testing services for the forest and timber industry Provides information on business opportunities such as investment, trade, finance, productivity pertaining to manufacturing and service sectors and facilitates companies who are looking for joint venture partners and promotes and coordinates the industrial development in Malaysia To organize training programmes to improve the international marketing skills of Malaysian exporters Ensures the quality of local products, penetrates the market potentiality and provides information on new discoveries in production

ENTREPRENEURIAL SOURCES OF CAPITAL AND SUPPORT

Additional

INCENTIVES IN ENTREPRENEURIAL ACTIVITIES

PIONEER STATUS
Tax exemption to new industry for a period of 3 10 years Encouragement to entrepreneurs to indulge in production activities

QUOTA
A limit on the quantity of products permitted to enter the country Encourage local entrepreneurs to produce more output to meet local demand

EMBARGO
A duty or tax that government puts on imported product Also refers to maximum amount a product can be imported or exported Prohibition or suspension of foreign trade of specific imports or exports To assist local entrepreneur dominate the market and grow faster

TARIFF / IMPORT DUTY

Tax imposed on imported goods Paid directly by the importer who typically passes the tax burden to consumers by charging higher price on the product This will benefits to local entrepreneur where local goods will be cheaper compared to the imported

EXPORT ENCOURAGEMENT
Assistance given to local entrepreneur to sell products to overseas The assistance in the form of lowering or exempting the tax on the exported goods

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7.0 entrepreneurial sources of capital and support system 7.1 distinguish business support systems 7.1.1 justify the sources of capital for entrepreneurship activities Personal funds Family and friends Banks and other financial institutions 7.1.2 classify types of business support Financial Technical Management and entrepreneur training Advisory service Location Marketing Research and development information