Sme Coursework
5.0 Coursework 1. Please describe the importance of entrepreneurship Currently, the study of entrepreneurship is relevant, not only because it helps an entrepreneur to fulfil his personal needs better, but also helps to enhance the economy and society. Among the importance of entrepreneurship to the society are as follows: 1.7.1 Fulfil the Unlimited Needs and Wants of the Community Normally, entrepreneurs are n manufacturers or businessmen who produce or supply various goods and services to fulfil the needs and wants of society. A successful entrepreneur is one who is able to identify the needs and wants of society and further supply products to the consumers. In order to fulfil consumers demands which are always increasing and changing, the entrepreneur produces different types of products, makes improvements on the existing products, or develops new products. 1.7.2 Create Choices through Innovative and Creative Production Techniques Entrepreneurs utilize factors of production such as land, capital, technology, information, and human resources through innovative and creative production techniques. They also identity opportunities in the environment and increase activitics that benefit the society. 1.7.3 Produce Products of High Quality Another benefit is that entrepreneurship often generates new ways of doing things. It encourages the creation of a broader range of products and services. Entrepreneurs select the best approach to utilize the factors of production in order to minimize wastage in entrepreneurial activities.
1.7.4 Create More Job OpportunitiesFor the past two decades, the Malaysian government has been emphasizing on the start-up of small and medium-sized enterprises that has increased the direction of smaller entrepreneurial firms. The government are also encouraging entrepreneurs to venture into global markets that would enhance the countrys economic performance. This would provide substantial employment to the Malaysian population. 1.7.5 Improve the Lifestyle of the SocietyWith the available job opportunities, the society is able to enjoy lucrative income. This income can be used to buy various products or a service that is needed. An entrepreneur always produces innovative products to help increase the societys quality of life.2. Please describe the problems faced by small and medium enterprises2.1.4 Problems faced by Small and Medium Enterprises (SMEs) There are several problems that SME entrepreneurs have to face in implementing SME development programmes. The problems faced by SME entrepreneurs are identified in Figure 2.3. Financial problems Financial problem is a major problem in the development of SME entrepreneurs in Malaysia. SME entrepreneurs find it very difficult to get loans from financial institutions especially at the growth stage of their business. Evert though loan facilities are provided by financial institutions, the instability of the entrepreneurs financial position makes it very difficult for them to obtain these loans. Furthermore, financial institutions tend to dive loans to bigger industries which are more stable.