THE EFFECTIVENESS OF GOVERNMENT-SUPPORT PROGRAMMES TOWARD BUSINESS GROWTH

Abstract

Recognizing the important role played by Small and Medium-Sized Enterprises (SMEs) in the nation’s economic activities, the Government has introduced several assistance programmes and incentives called government-support programmes (GSPs) which consists of financial and credit assistance, marketing and market research, technical and training assistance, extension and advisory services, and infrastructure supports. The GSPs aimed at preparing sustainable growth for SMEs. However, the contribution of GSPs toward business growth in SMEs firms is still questionable. GSPs are seen as lacking and not delivering enough towards developing and strengthening local SMEs. Therefore, the aim of this research is to identify the contribution of GSPs toward business growth among SMEs in Malacca. The aim was achieved through exploring, analyzing and examining the relationship of three dimensions of GSPs namely financial assistance, training assistance and marketing assistance and their importance toward business growth. The research methodology applied for this research is quantitative approach and research design chosen is descriptive study. A sample of 118 respondents of SME’s firm was surveyed using a structured questionnaire as an instrument. The findings of this research show that GSPs have a positive impact toward business growth among SMEs in Malacca. Furthermore, from the results also show that marketing assistance is the most important toward business growth compared to the others two dimensions of GSPs. This research provides some insight into the SME support agencies in order to exploit their potential and thus to increase the effectiveness of the relevant GovernmentSupport Programmes. For policy makers and ministries, the results can be used as the reference in formulating policies or support programmes to help SMEs gain better access to global markets, technology and finance as well as to improve their management capabilities.