Will youth, women entrepreneurs get a boost in Budget 2023?

KUALA LUMPUR: Making up 97.44 per cent of all businesses in the country, Micro, Small and Medium Enterprises (MSMEs) are truly the backbone of Malaysia’s economy.

However, an International Labour Organisation study found that women entrepreneurs still had limited capital and lacked awareness on accessing financial services for them.

CEO of iOli Communications Yan Lim found this to be true when she first ventured into entrepreneurship.

“The struggles were very real, especially for an accidental entrepreneur like myself. I didn’t know where to go or what to do,” the mother of four told Astro Awani on It’s About YOUth.

“But the lack of awareness on how to run a business was quickly addressed because of the support I received from the ecosystem and the people I knew back then.”

As of 2015, women-owned businesses only constituted 20.6 per cent of the total number of MSMEs, of which around 93 per cent had less than 10 employees.

Chris Daniel Wong, President of the Malaysia Digital Chamber of Commerce, said the majority of women entrepreneurs tend to be more cautious to avoid accumulating debt when they first start out.

He suggested both women and the youth to build their businesses based on three types of capitals, namely the three F’s of family, friends and fans.

“But after 18 months, I encourage them to take a loan from the bank… primarily because you need to build your credit profile,” he said, adding that this was fundamentally important for all entrepreneurs.

Commenting on the upcoming budget, Chris called for the government to focus on better policing to ensure young entrepreneurs are able to sustain themselves in the long run.

“We give grants, resources and facilities but we do not have the policing part of continuous education, motivation and monitoring to make sure that (the youths) excel in whatever they are doing.

“Sometimes the youth may have the drive for a while, but after that they find that when the going gets tough, they also kind of veer away.”

Yan Lim agreed, noting that the government had already rolled out a slew of initiatives such as the MyKasih Kapital programme and monetary aid funnelled through Bank Simpanan Nasional.

“There’s really a lot out there but the question we need to ask ourselves is whether these aids are really helping the people,” she said.