Strategic entrepreneurship framework for small and medium enterprises

Abstract

Small and medium enterprises (SME) businesses are important economic growing forces, particularly in Malaysia through their significant economic contribution towards business population and employment creation. The aim of this study is to develop a framework integrating fundamental strategic entrepreneurship elements that support business growth in the context of engineering or technology-based firms within the Malaysian SME sector. Through interviews with SME firm owners and senior management personnel, common strategic entrepreneurship practices that significantly influence business growth were identified and converged into a framework. Findings revealed that the main elements practiced by the SME firms can be categorized as People, External, Innovation Approach and Internal. People element was most referred to by the research participants, followed by the other elements respectively. A new model was developed to depict these elements and is referred to in this study as the PIIE Entrepreneurial Model. The most common limitation highlighted by the research participants was on the communication and collaboration gap between the older and younger generation of employees. The research participants also reacted to the financial challenges faced especially in terms of sourcing grants or funds for the businesses. This study should impart useful insights for policy makers and provide SME strategy practitioners or leaders with strategic entrepreneurship guidelines to help improve businesses and SME sector’s competitiveness.