According to SME Corporation results, approximately 98.5 percent of Malaysian business establishments are SMEs. According to the Department of Statistics’ 2019 survey, these SME companies contributed RM552.3 billion to Malaysia’s gross domestic product in 2019, accounting for nearly 40% of the country’s overall GDP.
In 2019, the job rate for SMEs in Malaysia increased to 48.4 percent, or equivalent to 7.3 million of total employees hired by SME firms. SME GDP growth in Malaysia has managed to outpace the country’s overall economic growth to the present day, rendering SMEs one of the most significant corporate organizations in Malaysia.
For many entrepreneurs, starting a company is a significant accomplishment, but running one is a greater challenge. If your company expands, various challenges are bound to arise, and without the correct and required remedy, your company is doomed to fail.
One of the issues that SME businesses face is a shortage of trained labor and human capital restrictions. As a result, these problems result in low competitiveness and quality performance within management, including manufacturing, stifling future market growth and development.
Another issue that SMEs face is a restricted or inability to adapt technologies in their operations. In today’s constantly evolving world of globalization, technology is critical to one’s industry. They save you time and effort, and they improve the protection of your company. Entrepreneurs cannot undermine the benefits technology provides as most tasks nowadays depend on the latest technological equipment.
In addition to the difficulties listed, the majority of SMEs face a common problem, which is a lack of access to finance and money. Finance is the nature that assists and helps companies to expand, meet their everyday expenses, and/or buy long-term investments for their businesses. Profitability, productive growth, and success are hampered in the absence of adequate resources.