| Aspect | Small Businessman | Entrepreneur |
|---|---|---|
| Time Orientation | Focuses on short-term stability and survival. | Focuses on long-term growth, scalability, and sustainability. |
| Nature of Job | Operates a business based on traditional methods; relies on existing products/services. | Innovates by creating new products, services, or business models. |
| Decision Making | Often routine and conservative; depends on past experiences. | Proactive, innovative, and based on market opportunities and risk assessment. |
| Risk Taking | Avoids or minimizes risks; prefers safe and tested options. | Willingly takes calculated risks for potential high rewards. |
| Goal | To generate consistent income and maintain livelihood. | To create value, expand the business, and achieve growth beyond survival. |
| Innovation | Limited innovation; focuses on running daily operations. | Strong emphasis on innovation, creativity, and new market opportunities. |
| Market Approach | Serves local or niche markets with limited expansion. | Targets larger markets (regional/global) with potential scalability. |
| Use of Resources | Utilizes personal savings, small loans, and limited technology. | Attracts investors, venture capital, and adopts advanced technology. |
| Vision | Seeks steady income for family and personal security. | Seeks to build enterprises that can disrupt industries or transform society. |
| Impact on Economy | Provides employment and supports local economy. | Drives innovation, creates new industries, and contributes to economic growth. |
Table 1. Descriptive Statistics of Constructs
| Construct | Mean | SD | Skewness | Kurtosis |
|---|---|---|---|---|
| Surveillance | 3.82 | 0.74 | -0.45 | 0.62 |
| Social Interaction | 4.01 | 0.69 | -0.28 | 0.55 |
| Information Sharing | 4.05 | 0.71 | -0.36 | 0.41 |
| Remuneration | 3.75 | 0.77 | -0.51 | 0.70 |
| Entertainment | 4.30 | 0.66 | -0.72 | 0.95 |
| Brand Equity | 4.12 | 0.68 | -0.43 | 0.52 |
| Purchase Intention | 4.08 | 0.72 | -0.49 | 0.60 |
4.2 Correlation Matrix
Table 2 shows the correlation coefficients between constructs. All constructs are positively and significantly correlated (p < 0.01), providing preliminary support for the hypothesised relationships.
Table 2. Correlation Matrix
| Construct | 1 | 2 | 3 | 4 | 5 | 6 | 7 |
|---|---|---|---|---|---|---|---|
| 1. Surveillance | 1 | ||||||
| 2. Social Interaction | 0.58** | 1 | |||||
| 3. Information Sharing | 0.61** | 0.63** | 1 | ||||
| 4. Remuneration | 0.55** | 0.59** | 0.57** | 1 | |||
| 5. Entertainment | 0.64** | 0.67** | 0.65** | 0.62** | 1 | ||
| 6. Brand Equity | 0.66** | 0.71** | 0.70** | 0.65** | 0.73** | 1 | |
| 7. Purchase Intention | 0.63** | 0.69** | 0.68** | 0.61** | 0.71** | 0.76** | 1 |
Note: **p < 0.01
1.1.2 Differentiate Between Small Businessman and Entrepreneurs
While both small business owners and entrepreneurs manage businesses, there are clear distinctions between the two.
| Month | Sales (RM) | COGS (45%) | Gross Profit | Operating Exp. | Marketing | Loan Repayment | Other Exp. | Net Cash Flow |
|---|---|---|---|---|---|---|---|---|
| January | 110,000 | 49,500 | 60,500 | 65,000 | 5,000 | 3,500 | 2,000 | -15,000 |
| February | 115,000 | 51,750 | 63,250 | 65,000 | 4,000 | 3,500 | 2,000 | -11,250 |
| March | 120,000 | 54,000 | 66,000 | 65,000 | 4,000 | 3,500 | 2,000 | -8,500 |
| April | 125,000 | 56,250 | 68,750 | 65,000 | 3,000 | 3,500 | 2,000 | -4,750 |
| May | 130,000 | 58,500 | 71,500 | 65,000 | 3,000 | 3,500 | 2,000 | -3,000 |
| June | 135,000 | 60,750 | 74,250 | 65,000 | 3,000 | 3,500 | 2,000 | +750 |
| July | 140,000 | 63,000 | 77,000 | 65,000 | 3,000 | 3,500 | 2,000 | +3,500 |
| August | 145,000 | 65,250 | 79,750 | 65,000 | 3,000 | 3,500 | 2,000 | +6,250 |
| Sept | 150,000 | 67,500 | 82,500 | 65,000 | 3,000 | 3,500 | 2,000 | +9,000 |
| October | 155,000 | 69,750 | 85,250 | 65,000 | 3,000 | 3,500 | 2,000 | +11,750 |
| Nov | 160,000 | 72,000 | 88,000 | 65,000 | 3,000 | 3,500 | 2,000 | +14,500 |
| Dec | 165,000 | 74,250 | 90,750 | 65,000 | 5,000 | 3,500 | 2,000 | +15,250 |
| Aspect | Small Businessman | Entrepreneur |
|---|---|---|
| Goal | Primarily to earn a steady income and maintain stability | Focused on growth, innovation, and market disruption |
| Risk Appetite | Avoids high risks; prefers predictable outcomes | Willing to take calculated risks for high rewards |
| Innovation | Often follows established business models | Creates new products, services, or processes |
| Market Approach | Operates in existing markets | Often creates new markets or niches |
| Growth Ambition | Limited to local or small-scale expansion | Aims for regional, national, or global expansion |
| Aspect | Primary Sources | Secondary Sources |
|---|---|---|
| Nature of Data | First-hand, direct | Second-hand, via other parties |
| Cost & Time | More expensive & time-consuming | Cheaper & quicker to access |
| Accuracy | High, as it comes directly from the actual source | Depends on the party providing the data |
| Examples | Observation, experience, customer surveys | Industry reports, government data, news articles |
| Construct | Dimensions / Indicators | Measurement Scale | Source |
|---|---|---|---|
| Social Media Usage | Surveillance, Social Interaction, Information Sharing, Remuneration, Entertainment | 5-point Likert | Adapted from prior studies |
| Brand Equity | Brand Awareness, Brand Association, Perceived Quality, Brand Loyalty | 5-point Likert | Aaker (1991), Keller (1993) |
| Purchase Intention | Intention to purchase, Intention to recommend | 5-point Likert | Adapted from prior studies |
| Hypothesis | Statement |
|---|---|
| H1 | Surveillance activities on social media positively influence brand equity among SMEs in Malaysia. |
| H2 | Social interaction and engagement strategies on social media positively affect brand equity among SMEs in Malaysia. |
| H3 | Information sharing through social media positively impacts brand equity among SMEs in Malaysia. |
| H4 | Remuneration, such as incentives or rewards, enhances brand equity through social media for SMEs in Malaysia. |
| H5 | Entertainment content on social media platforms positively influences brand equity among SMEs in Malaysia. |
| H6 | Brand equity positively correlates with purchase intention among consumers of SMEs in Malaysia. |
| H7 | Brand equity mediates the relationship between social media usage and purchase intention among SMEs in Malaysia. |
| Hypothesis | Statement |
|---|---|
| H1 | Surveillance activities on social media positively influence brand equity among SMEs in Malaysia. |
| H2 | Social interaction and engagement strategies on social media positively affect brand equity among SMEs in Malaysia. |
| H3 | Information sharing through social media positively impacts brand equity among SMEs in Malaysia. |
| H4 | Remuneration, such as incentives or rewards, enhances brand equity through social media for SMEs in Malaysia. |
| H5 | Entertainment content on social media platforms positively influences brand equity among SMEs in Malaysia. |
| H6 | Brand equity positively correlates with purchase intention among consumers of SMEs in Malaysia. |
| H7 | Brand equity mediates the relationship between social media usage and purchase intention among SMEs in Malaysia. |
Here’s a clear comparison summary table for the three types of business ownership in Malaysia:
| Aspect | Sole Proprietorship | Partnership | Company (Sdn. Bhd.) |
|---|---|---|---|
| Ownership | Single individual | Minimum 2, maximum 20 partners (except professional partnerships e.g., legal, accounting) | Separate legal entity owned by shareholders (min. 1, no max limit for private/public companies) |
| Legal Status | Not a separate legal entity; owner and business are the same | Not a separate legal entity; partners and business are the same | Separate legal entity under Companies Act 2016; company can own assets, sue, or be sued |
| Liability | Unlimited – personal assets at risk | Unlimited – partners jointly and severally liable | Limited – shareholders liable only up to their shareholding |
| Formation | Simple registration with SSM under Registration of Businesses Act 1956 | Registered with SSM under the same Act; partnership agreement recommended | Incorporated with SSM under Companies Act 2016; more documents required (constitution, directors, secretary) |
| Cost of Registration | Low (RM30–RM60 per year) | Low (similar to sole proprietorship, depends on type of business name) | Higher (approx. RM1,000+ for incorporation and professional fees) |
| Management & Control | Full control by owner | Shared control among partners (based on agreement or equally) | Managed by directors appointed by shareholders |
| Tax Treatment | Profits taxed as owner’s personal income (LHDN) | Profits taxed as partners’ personal income (divided based on agreed ratio) | Subject to corporate tax (flat 24%, SME rate 17% for first RM600k) |
| Continuity | Ends upon owner’s death or closure | Ends if any partner dies, resigns, or agreement ends (unless otherwise agreed) | Perpetual succession – company continues despite changes in ownership |
| Compliance | Minimal; annual business renewal and personal income tax | Minimal; annual renewal, partnership agreement, personal income tax | More complex; annual returns, audited financial statements, company secretary compliance |
| Capital Raising | Limited to owner’s savings or loans | Limited to partners’ contributions and borrowings | Easier to raise capital through shares, investors, or loans |
| Advantages | Easy, low cost, full control, quick setup | More capital/resources, shared responsibility, diverse skills | Limited liability, easier access to funding, credibility, perpetual existence |
| Disadvantages | Unlimited liability, limited growth, ends with owner | Unlimited liability, potential conflicts among partners, not perpetual | Higher cost, stricter compliance, more formalities |
Here’s a clear comparison summary table for the three types of business ownership in Malaysia:
| Aspect | Sole Proprietorship | Partnership | Company (Sdn. Bhd.) |
|---|---|---|---|
| Ownership | Single individual | Minimum 2, maximum 20 partners (except professional partnerships e.g., legal, accounting) | Separate legal entity owned by shareholders (min. 1, no max limit for private/public companies) |
| Legal Status | Not a separate legal entity; owner and business are the same | Not a separate legal entity; partners and business are the same | Separate legal entity under Companies Act 2016; company can own assets, sue, or be sued |
| Liability | Unlimited – personal assets at risk | Unlimited – partners jointly and severally liable | Limited – shareholders liable only up to their shareholding |
| Formation | Simple registration with SSM under Registration of Businesses Act 1956 | Registered with SSM under the same Act; partnership agreement recommended | Incorporated with SSM under Companies Act 2016; more documents required (constitution, directors, secretary) |
| Cost of Registration | Low (RM30–RM60 per year) | Low (similar to sole proprietorship, depends on type of business name) | Higher (approx. RM1,000+ for incorporation and professional fees) |
| Management & Control | Full control by owner | Shared control among partners (based on agreement or equally) | Managed by directors appointed by shareholders |
| Tax Treatment | Profits taxed as owner’s personal income (LHDN) | Profits taxed as partners’ personal income (divided based on agreed ratio) | Subject to corporate tax (flat 24%, SME rate 17% for first RM600k) |
| Continuity | Ends upon owner’s death or closure | Ends if any partner dies, resigns, or agreement ends (unless otherwise agreed) | Perpetual succession – company continues despite changes in ownership |
| Compliance | Minimal; annual business renewal and personal income tax | Minimal; annual renewal, partnership agreement, personal income tax | More complex; annual returns, audited financial statements, company secretary compliance |
| Capital Raising | Limited to owner’s savings or loans | Limited to partners’ contributions and borrowings | Easier to raise capital through shares, investors, or loans |
| Advantages | Easy, low cost, full control, quick setup | More capital/resources, shared responsibility, diverse skills | Limited liability, easier access to funding, credibility, perpetual existence |
| Disadvantages | Unlimited liability, limited growth, ends with owner | Unlimited liability, potential conflicts among partners, not perpetual | Higher cost, stricter compliance, more formalities |
Here’s a comparison summary table between Private Limited Company (Sdn. Bhd.) and Public Limited Company (Bhd.) in Malaysia:
| Aspect | Private Limited Company (Sdn. Bhd.) | Public Limited Company (Bhd.) |
|---|---|---|
| Ownership | Minimum 1 shareholder, maximum 50 | Minimum 2 shareholders, no maximum limit |
| Shares | Shares cannot be offered to the public | Shares can be offered to the public |
| Listing | Cannot be listed on Bursa Malaysia | Can be listed on Bursa Malaysia (if it becomes a Public Listed Company – PLC) |
| Share Transfer | Restricted – requires approval of existing shareholders | Freely transferable (subject to stock exchange rules if listed) |
| Legal Status | Separate legal entity under Companies Act 2016 | Separate legal entity under Companies Act 2016 |
| Liability | Limited liability – shareholders’ liability restricted to unpaid shares | Limited liability – shareholders’ liability restricted to unpaid shares |
| Management | Managed by Board of Directors appointed by shareholders | Managed by Board of Directors; stricter governance required for listed companies |
| Capital Raising | Limited – mainly through private funding, shareholders, or loans | Easier – can raise large amounts of capital by issuing shares or bonds to the public |
| Compliance Requirements | Moderate – requires company secretary, annual return, and audited accounts | Higher – must comply with stricter reporting, disclosure, and corporate governance standards |
| Credibility | High credibility but less public scrutiny | Very high credibility and transparency due to public accountability |
| Examples | Family businesses, SMEs, subsidiaries of larger companies | Major corporations such as Maybank Berhad, Petronas Chemicals Berhad |
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Here’s a comparison summary table between Private Limited Company (Sdn. Bhd.) and Public Limited Company (Bhd.) in Malaysia:
| Aspect | Private Limited Company (Sdn. Bhd.) | Public Limited Company (Bhd.) |
|---|---|---|
| Ownership | Minimum 1 shareholder, maximum 50 | Minimum 2 shareholders, no maximum limit |
| Shares | Shares cannot be offered to the public | Shares can be offered to the public |
| Listing | Cannot be listed on Bursa Malaysia | Can be listed on Bursa Malaysia (if it becomes a Public Listed Company – PLC) |
| Share Transfer | Restricted – requires approval of existing shareholders | Freely transferable (subject to stock exchange rules if listed) |
| Legal Status | Separate legal entity under Companies Act 2016 | Separate legal entity under Companies Act 2016 |
| Liability | Limited liability – shareholders’ liability restricted to unpaid shares | Limited liability – shareholders’ liability restricted to unpaid shares |
| Management | Managed by Board of Directors appointed by shareholders | Managed by Board of Directors; stricter governance required for listed companies |
| Capital Raising | Limited – mainly through private funding, shareholders, or loans | Easier – can raise large amounts of capital by issuing shares or bonds to the public |
| Compliance Requirements | Moderate – requires company secretary, annual return, and audited accounts | Higher – must comply with stricter reporting, disclosure, and corporate governance standards |
| Credibility | High credibility but less public scrutiny | Very high credibility and transparency due to public accountability |
| Examples | Family businesses, SMEs, subsidiaries of larger companies | Major corporations such as Maybank Berhad, Petronas Chemicals Berhad |
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Here’s a comparison summary table between Private Limited Company (Sdn. Bhd.) and Public Limited Company (Bhd.) in Malaysia:
| Aspect | Private Limited Company (Sdn. Bhd.) | Public Limited Company (Bhd.) |
|---|---|---|
| Ownership | Minimum 1 shareholder, maximum 50 | Minimum 2 shareholders, no maximum limit |
| Shares | Shares cannot be offered to the public | Shares can be offered to the public |
| Listing | Cannot be listed on Bursa Malaysia | Can be listed on Bursa Malaysia (if it becomes a Public Listed Company – PLC) |
| Share Transfer | Restricted – requires approval of existing shareholders | Freely transferable (subject to stock exchange rules if listed) |
| Legal Status | Separate legal entity under Companies Act 2016 | Separate legal entity under Companies Act 2016 |
| Liability | Limited liability – shareholders’ liability restricted to unpaid shares | Limited liability – shareholders’ liability restricted to unpaid shares |
| Management | Managed by Board of Directors appointed by shareholders | Managed by Board of Directors; stricter governance required for listed companies |
| Capital Raising | Limited – mainly through private funding, shareholders, or loans | Easier – can raise large amounts of capital by issuing shares or bonds to the public |
| Compliance Requirements | Moderate – requires company secretary, annual return, and audited accounts | Higher – must comply with stricter reporting, disclosure, and corporate governance standards |
| Credibility | High credibility but less public scrutiny | Very high credibility and transparency due to public accountability |
| Examples | Family businesses, SMEs, subsidiaries of larger companies | Major corporations such as Maybank Berhad, Petronas Chemicals Berhad |
| Category | Support Provided | Examples / Impact |
|---|---|---|
| Financial | – Credit facilities & loans – Fixed asset financing – Support for factory setup – Assistance to purchase office equipment & machinery | – Entrepreneurs can expand operations – Easier access to capital – Encourage business growth |
| Marketing | – Marketing & distribution support – Assistance in promoting products locally & internationally | – Participation in trade fairs – Digital marketing support – Market penetration domestically & globally |
| Technical | – Educational & technical courses – Exposure to latest production methods – Systematic management practices – Schemes to improve product quality with technology | – Increased efficiency – Adoption of modern technology – Improved quality standards |
| Training | – Skills training for entrepreneurs – Confidence building – Motivation & encouragement | – Leadership workshops – Entrepreneurship development programmes – Stronger business acumen |
| Research & Development (R&D) | – Support for research activities – Feasibility studies & project analysis – Marketing & technology research – Improving efficiency & product quality | – Innovation in products & processes – Higher competitiveness – Sustainable long-term growth |
| Type | Description | Examples | Key Considerations |
|---|---|---|---|
| Brick-and-Mortar | Traditional physical store or office where customers visit | Retail shops, cafes, salons | Customer access, visibility, rent, competition |
| Business on the Go | Mobile or temporary operations | Food trucks, pop-up stores, market stalls | Flexibility, mobility, permits, seasonal demand |
| Business in the Cloud | Online or virtual businesses | E-commerce shops, freelance consulting, digital services | Digital presence, delivery logistics, global competition |
| Type | Description | Advantages | Challenges | Examples |
|---|---|---|---|---|
| Urban | Located in city or town centers | High foot traffic, better supplier access, visibility | High rent, high competition | Cafés, boutique stores |
| Suburban | Residential areas outside city centers | Lower rent, easier parking, loyal local customers | Lower foot traffic, marketing needed | Grocery stores, daycare centers |
| Rural | Countryside or low-density areas | Low overhead costs, larger space, community support | Limited customer base, fewer suppliers | Organic farms, local handicraft shops |
| Home-Based | Operates from the owner’s residence | Minimal overhead, convenient, flexible | Limited professional image, space restrictions, zoning laws | Home bakery, freelance graphic design |
| Online / Virtual | Operates primarily online | Wide reach, low physical costs, flexible hours | Global competition, requires marketing and delivery | E-commerce, online coaching |
| Mobile / Temporary | Temporary or movable locations | Flexible, test different markets, low commitment | Weather dependency, space limits, permits required | Food trucks, pop-up fashion stalls |