LEARNING entrepreneurship theories alone is not enough for youths to make it big in business.
Exposure to real-world experience and business acumen are crucial competencies that must be honed in school – if we want to see more youth-driven enterprises, experts stress.
Small and Medium Enterprise (SME) Association of Malaysia president Dr Chin Chee Seong said to groom successful young entrepreneurs, lessons on entrepreneurship must start at school – not during their tertiary years.
Malaysians, he said, must be exposed to problem-solving, communication, leadership, sales, financial discipline and basic business knowledge from a young age.
“They also need more real business exposure through internships with SMEs, mentoring by experienced entrepreneurs, business simulations, digital commerce experience and networking opportunities,” he said, adding that youth participation in the sector is low due to the lack of entrepreneur education.
According to the Department of Statistics Malaysia, 71,112 establishments were owned by youth, representing 6.5% of all business establishments in the country, as at 2022. The majority of these businesses were in the services sector, its report on youth read. The report was released on June 19 last year.
“We need to equip our students with practical business readiness and stronger communication skills,” Chin said, adding that there is currently too much focus on theory and exams.
Students, he added, must be equipped with:
> Strong command of major languages, especially English, Bahasa Malaysia and Mandarin
> Good communication skills, including speaking confidently, writing clearly and presenting ideas effectively
> Digital communication skills for today’s business environment
> Financial literacy such as budgeting, cash flow, profit margins, taxation, savings and investment planning
> Sales, negotiation, customer service and marketing skills
> Digital business knowledge such as e-commerce, artificial intelligence (AI) tools, branding and social media strategy
> Understanding of real market conditions, business risks, global trends and economic cycles
> Critical thinking, creativity, adaptability and leadership
Beyond education
Chin said access to financing, grants and proper guidance must be made easier for young people who have good ideas but limited capital.
“Many of them face difficulty in getting capital or financing because they may not have a strong business track record, collateral or financial history,” he said.
He also said they face challenges that are quite different from more established business owners.
“They may have good ideas and strong passion, but lack practical business experience. Running a business involves operations, staffing, compliance, cash flow, marketing and understanding real market conditions,” he added.
Chin said young entrepreneurs also face credibility challenges and customers, suppliers, banks or investors may hesitate to trust them fully because of their age or limited experience.
Add to that the stress of entrepreneurship, especially when dealing with rejection, uncertainty, competition and the pressure of comparing themselves with others on social media.
“At the same time, technology, consumer behaviour and market trends are changing very fast. Young entrepreneurs must be willing to keep learning, adapt quickly and improve continuously.
“Most importantly, youths must understand that entrepreneurship is not a shortcut to quick money. It requires patience, resilience, adaptability, continuous learning and the courage to learn from failure,” he pointed out.
Chin said the SME Association of Malaysia has a strong and inclusive Young Entrepreneurs Bureau to empower and prepare the next generation of business leaders.
“This is also in line with our nation-building objective and the government’s direction to strengthen entrepreneurship, innovation, digitalisation and youth participation in the economy,” he said.
Among their activities, he added, are networking sessions and business forums, knowledge-sharing programmes, mentorship opportunities with established entrepreneurs and senior members from various industries, and business matching programmes that connect young entrepreneurs with potential partners, suppliers, customers and investors.
Need for awareness
Universiti Putra Malaysia (UPM) School of Business and Economics Assoc Prof Dr Mass Hareeza Ali said there are many government agencies that provide assistance for aspiring entrepreneurs – from financing to training to networking.
These include the Malaysia Digital Economy Corporation (MDEC), the National Entrepreneurial Group Economic Fund (Tekun Nasional) and Cradle Fund Sdn Bhd.
There is also SME Corp Malaysia which provides training and international entrepreneurship competition exposure, she added.
However, despite the availability of these resources, she said there is a lack of awareness among the youth, especially in rural communities.
“While Malaysia already has the support, we are lacking the awareness.
“Some youths we speak to do not even know the importance of networking. Sometimes they are not aware that they have to meet people, such as other stakeholders or to find mentors,” she said.
At the university level, UPM School of Business and Economics lecturer Dr Noor Azlin Ismail said all undergraduate students in Malaysia have to undergo the Higher Education Ministry’s Basic Entrepreneurship course in order to graduate.
The course, she said, exposes students to building a startup from scratch as they learn how to source for capital, do marketing and prepare a business plan.
However, to assist youths succeed, she suggested the government set up one-stop digital portals for business registrations and financing applications at all government agencies.
“The government can also help bridge the funding gap through grants and microfinance, and by connecting youth to venture capitalists or angel investors,” she said, adding that more industrial talks, attachments, as well as business competitions and programmes should be organised.
“Youth entrepreneurship should be seen as an important national agenda because young entrepreneurs are the future job creators, innovators and drivers of our economy,” Chin concluded.
