The Roles of Government Funding in Enhancing the Competitiveness of Small and Medium-sized Enterprise in Sabah, Malaysia

Abstract

This study was conducted in order to determine the roles of government funding in enhancing Small and Medium-Sized Enterprises in Sabah, Malaysia. Specifically, the study is focused on the Small and Medium-Sized Enterprises in Sabah, Malaysia which were funded by many government-linked agencies such as Yayasan Tekun Nasional, Amanah Ikhtiar, Koperasi Pembangunan Desa and Agro Bank. This qualitative study was carried out in the rural and urban areas in Sabah, Malaysia. The findings of this study revealed that there are several main roles of government funding to enhance the competitiveness of Small and Medium-Sized Enterprises in Sabah, Malaysia. These four main roles were namely provision of access to capital for opening and improving the business, provision of access to capital for skills and knowledge development, improvement of entrepreneurs’ relations, and promoting entrepreneurship and reducing “fear of failure”. In accordance, it can be concluded that the government funds are instrumental in the success of the efforts to enhance the competitiveness level of the so-called Small and Medium-Sized Enterprises in Sabah, Malaysia. Besides, it is highly recommended that state government and all parties (the stakeholders) should specifically implement efforts to fund the Small and Medium-Sized Enterprises as well as to improve their level of competitiveness.