Attitudes of Entrepreneurs in SMEs towards Training in Malaysia

Abstract

The significant contribution of small and medium-sized enterprises (SMEs) to national economic development is widely recognized in Malaysia. Various training programmes for SMEs have been provided by different agencies and institutions (both governmental and private-sector). The aim has been to accelerate systematic training programmes for the development of SMEs. However, it is difficult to ascertain the attitudes and perceptions of entrepreneurs in SMEs concerning these programmes, and consequently the extent to which they have made good use of them. This paper attempts to evaluate the attitudes of entrepreneurs in SMEs towards training programmes for their employees, and to examine the extent of their efforts to provide training facilities in their firms. To this end, a survey was carried out of 185 entrepreneurs in SMEs in Penang, Malaysia. The study reveals that a majority of them realize the need for training; a large percentage realize that the existing training programmes are useful and relevant to their requirements; and a majority of them provide training programmes using ‘on-the-job’ training. However, only a small percentage provide and use a specific annual budget for training. The results of the survey suggest that training efforts among the entrepreneurs remain limited despite the fact that there is a widespread realization of the importance of training.