Success factors and

challenges faced by
a small business in
tourism, and the
role of public
sector in SME

1.

Background of your research:

a. Why is important to know the success factors and challenges
faced by a small business in tourism, and the role of public
sector in SME
b.
The link between (a) and a concept(s) in the
textbook/readings
c. The background of the business that your group chose to
study.

2.

How you collect information

a. How you collect the information? (Method and procedure
involved)
b. Why you chose that method?

3.

Your findings
a. Success factors
b. Challenges
c. What the respondent feel about the role of public sector in
SME in general and in his/her business in particular

BACKGROUND
OF
RESEARCH

1A. WHY IS IMPORTANT TO KNOW THE

SUCCESS FACTORS AND CHALLENGES FACED
BY A SMALL BUSINESS IN TOURISM, AND THE
ROLE OF PUBLIC SECTOR IN SME

1. Small and medium industry are an

important
factor
of
economic
development. A healthy SME sector
contributes prominently to the economy
through:
a. creating more employment opportunities,
b. generating higher production volumes,
c. increasing exports and
d. introducing innovation and
entrepreneurship skills.

2.

Understanding the key success factors are

vital for the entrepreneur to ensure their
competitiveness performance within
tourism industry

3.

The entrepreneur can take advantage from

the understanding by aligning their
company goals, objectives and visions
with the success factors of the industry.

4.

The entrepreneur will know how well their

company performance if they understand
the success factor and what kind of
improvement they should make to ensure
their survivability in the tourism industry

5.

By understanding the challenges, the

entrepreneur will be more agile and
responsive towards any changes
within the tourism industry

6.

The entrepreneur will be able to

identify the critical success factors
more accurately when they understand
the challenges they faced in the
tourism industry.

7.

Through the understanding of the

challenges, the entrepreneur can
formulate their company strategies
more effectively to deliver quality
services to their customers.

THE ROLE OF PUBLIC SECTOR IN SME

The role of the government for SME can be
divided in two;
a. MONETARY

Tourism grant

Shopping Rebate

Oversea travel promotion and expo

- Ministry of Science, technology &
Innovation (MOSTI), Banks, Amanah
Ikhtiar Malaysia (AIM), Majlis Amanah
Rakyat (MARA), Malaysia External Trade
Development (MATRADE), Mdec,
Malaysia industrial Development Finance

b. NON MONETARY
Technical Malaysian Agricultural R&D Inst
(MARDI), Fisheries Research Institute (FRI
Marketing - Ministry of International Trade
and Industry (MITI), Malaysian External Trade
Development Corporation (MATRADE), Federal
Agricultural Marketing Authority (FAMA)
Advisory
Besides that,
Providing infrastructure and facilities to
boost tourism
Visit Malaysia Promotion through Tourism
Ministry
Expanding the tourism market like in health
and education.

BUGDET 2017 ON TOURISM

1.

The government will continue to focus

on promoting and enhancing tourism
facilities with an allocation of RM400
million.

2.

Tax deduction has been increased from

RM500,000 to RM700,000 to encourage
the private sector to sponsors local and
foreign arts, culture and heritage shows
and performances.

BUGDET 2017
3.

The government would promote

Malaysia through the Visit Asean@50
Year Campaign in conjunction with the
50th anniversary of Asean and
Malaysia as host of the 2017 SEA
Games and Asean Para Games.

4.

To achieve the target of 32 million

tourist arrivals next year, Najib said the
government would extend eVisa to
Balkan and South Asian countries.

BUGDET 2017
5.

Four more Urban Transformation

Centres (UTC) in Negeri Sembilan,
Perlis, Penang and Selangor and
three Rural Transformation Centres
(RTC) in Selangor, Sabah and
Sarawak would be built with an
allocation of RM100 million.

As a new measure, each UTC will also

set up a Job Centre to match job
seekers with potential employers.

1B) THE LINK BETWEEN (A) AND A

CONCEPT(S) IN THE TEXTBOOK/READINGS

According to Allison,
Lack of financial liquidity is the major
cause

of

hospitality,

business

failure

tourism

and

in

the

leisure

industries.
Sources of start-up funding and their
operational and ownership impact
financial

management

entrepreneurial ventures

in

small

B) THE LINK BETWEEN (A) AND A

CONCEPT(S) IN THE TEXTBOOK/READINGS
97%

of business establishments in
Malaysia are small and medium
enterprises (SMEs). These businesses
are responsible for nearly 36% of the
countrys GDP, 65% of the countrys
employment, and nearly 18% of
Malaysias exports. worldbank.org, July
5, 2016

Malaysias

transition to a high-income
economy will highly depend on SMEs
contribution to GDP growth. - Anabel

B) THE LINK BETWEEN (A) AND A

CONCEPT(S) IN THE TEXTBOOK/READINGS
From

January to December 2015, Malaysia

welcomed a total of 25.7 million (25,721,251)
tourists and RM69.1 billion tourism receipts.

Compared

to Visit Malaysia Year 2014, for

which there was a bigger financial allocation
conduct various publicity and promotion
activities, the 2015 tourist arrivals and
receipts registered a decline of 6.3% and
4.0% respectively. tourism.gov.my, 31 March
2016

BACKGROUND OF BUSINESS
COMPANY BACKGROUND
NAME OF COMPANY

ARTISAN COFFEE

ADDRESS

FORM OF BUSINESS

PARTNERSHIP

MAIN ACTIVITY

FOOD AND BEVERAGES

DATE OF COMMENCEMENT

11 JANUARY 2011

BACKGROUND OF BUSINESS

METHODOLOGY

Qualitative Research

Collect information through

INTERVIEW

Participant : owner-operators of
independent restaurants in
Petaling Jaya (Artisan Coffee)

METHODOLOGY
Exploratory

face-to-face semi-

structured interviews
explore

participants perceptions

and experiences

WHY CHOOSE SEMI-STRUCTURED

INTERVIEWS?
1) Questions canbe prepared ahead of
time. This allows the interviewer to be
prepared and appear competent during
the interview.
2) Semi-structured interviews alsoallow
informants the freedom to express their
views in their own terms.
3) Semi-structure interviews can provide
reliable, comparable qualitative data.

FINDING
SUCCESS FACTOR :

Management And Ownership

Structure,

Clear Objectives,

Quality Products,

Simple But Delicious Menu,

Staff Personality And

Location And Parking

FINDING
CHALLENGES :
Keeping Up With The Market
Trends,

Capital,

Control Cost,

Managerial,

Competition and

Marketing

What the respondent feel about the role of public sector in SME
in general and in his/her business in particular

Monetary

& Non-Monetary
Assistance from Public Sector
Use his own fund