Survival Through Entrepreneurship: Determinants of Successful Micro-enterprises in Balik Pulau, Penang Island, Malaysia

Like in any developing countries, micro enterprises have developed as a means to respond to growing poverty particularly in generating income to supplement household income. This study will examine several key success determinants for micro-enterprises in Penang. The success factors will be examined based on the determinants that have been identified as framework of the study. Several studies on SMEs in Penang have been done but mostly focusing on the challenges and struggles faced by small and medium enterprises, concentrating more on the manufacturing sector. More studies are still needed on micro enterprises in Penang particularly looking at the success factors, motivations, challenges and struggles. This in-depth study of the performance of micro-enterprise in Balik Pulau area, where most of the Malay ethnic group is concentrated, will provide an insight into the challenges and struggles in their business performance. Findings have shown that there is a significant different between those micro-entrepreneurs in formal business (registered company) than those informal microenterprises. Informal micro-entrepreneurs are mostly survivalist, have limited access to capital, low level of knowledge in business marketing whereas formal micro-entrepreneurs are more inspired and aggressive in expanding their business operations. This study also reveals the important role of government agencies such as the State Agricultural Department and local Farmer‟s Organization in assisting women micro-entrepreneurs in Balik Pulau, particularly during their business initial development.