2.3 Business Support System DFP6013 cyberpreneurship 2.3 Business Support System

Learning Outcome At the end of this class, student will be able to: Justify the sources of capital for entrepreneurship activity: personal funds, family and friends Bank and other financial institutions Explain the types of business support system in Malaysia.

Sources of capital for entrepreneurship As entrepreneurs think about starting a business, they use to think about the sources of capital to convert ideas and innovations into product and service concepts. The most obvious of these include: personal funds family and friends Bank and other financial institutions

personal funds Depending on how much cash you need (and how much you have), you may find that using personal funds is the best option. Over 50% of small business start-ups are financed with personal funds.

family and friends Friends and family members might be the most lenient investors. They don’t tend to make you pledge your house, and they might even agree to sell their interest in your company back to you for a nominal return.

Bank and other financial institutions Banks are a straightforward source of funds. Many offer small-business loans if you've already started your business. They provide short-, mid- or long-term financing, and they finance all asset needs, including working capital, equipment and real estate. (business plan and a personal guarantee are needed) The government can also help. There many different funding sources as well as give you assistance with the legal and administrative aspects of starting your business.(follow the procedures).

Business Support System(bss) BSS refers to the assistance and service given by the government or private agencies to help entrepreneurs to start anew business or develop an existing one. Financial Institution Management and Entrepreneurship Technology Location Marketing Research and Project Identification Information

Business support facilities in Malaysia:- Financial Institution Management and entrepreneurship training Technology Location Marketing Research and Project Identification Information

Financial Institutions Financial institutions include banks, credit unions and asset management firms. These institutions are responsible for distributing financial resources in a planned way to the potential users. To provide funding to start a business or implement a business To provide financing with no interest or low interest rates To provide loan facilities, overdrafts, lease and hire purchase. Menyediakan kemudahan pinjaman, overdraf, pajakan, sewa beli, surat kredit dan bil diskaun A fund/asset based financial service-bill discount

Examples of institutions offering financial facilities : Jenis pembiayaan Agensi Perniagaan am, pertanian dan perindustrian MIDF, MARA, Bank Pembangunan Malaysia, AgroBank, Bank industri Malaysia Pembiayaan Semula Kredit Syarikat Jaminan semula kredit, Eksport Berhad, Bank-bank Perdagangan, Agensi kewangan Berbagai Skim Jaminan Syarikat Jaminan Kredit Malaysia Berhad Program Pembangunan Luar Bandar Kementeran Pembangunan Luar Bandar Tabung Usahawan Baru Kementerian Perdagangan Antarabangsa dan Industri (MITI) melalui Maybank Berhad

Management and Entrepreneurship Training Offering courses and training on the systematic management of financial, quality control, sales, marketing and layout. Offering courses to increase entrepreneurial Offering courses in entrepreneurship awareness Offering job training Train entrepreneurs to have high skills in the field of effort, and knowledgeable in the field of management To provide encouragement and support in order to improve the business

The agencies involved are : MEDEC-Pusat Pembangunan Usahawan Malaysia ICDU-Unit Pelarasan dan perlaksanaan, Jabatan Perdana Menteri MARA-Majlis Amanah rakyat PDPN-Pusat Daya Pengeluaran Negara MARDI- Institut Penyelidikan dan Kemajuan Pertanian Malaysia SIRIM-Institut Piawaian dan Penyelidikan

Technology / technical assistance To increase the technical knowledge available among the entrepreneurs to attend the education provided. Entrepreneurs can learn about the latest technology, especially in the areas of manufacturing and management Usually served by skilled staff and trained to use modern tools from within and outside the country The transfer of modern technology is very important in order to create a culture of effectiveness in line with national economic development

Examples of such agencies SIRIM (Institut Piawaian dan Penyelidikan Perindustrian Malaysia) MARA (Majlis Amanah Rakyat) MARDI (Malaysian Agricultural Research & Development Institute) PORIM (Institut Minyak Kelapa Sawit Malaysia) FRIM (Institut Penyelidikan dan Hutan Malaysia) JKJ (Jabatan Kilang dan Jentera) Jabatan Perkhidmatan Haiwan/Veterinar Kementerian Pendidikan Pusat Latihan Belia Dusun Tua Higher Education Institution

Infrastructure / location & premise Provide site preparation services in accordance or agreement with the pattern of business location business or enterprise will be developed. Assist in reducing the problem of retail space and industrial sites in the area of strategic and practical Examples of agencies are involved: MARA, UDA, SEDCs (State Economic Development Corporation)

Marketing Assistance Will provide support services to help distribute and market their product locally and internationally. Promote marketing and export of local products Creating a marketing network Creating outlets and agents Expanding the local market

Examples of agencies involved MITI FAMA PERNAS EDAR MATRADE MIHAS Karyaneka Besta Distributor Guthrie Furniture Sdn Bhd MEXPO- Pusat Perdagangan Eksport Malaysia

Research and development There are several agencies assisting entrepreneurs in conducting research and development Among the research conducted are project feasibility studies, marketing research and technology related studies. Examples of agencies are involved: MARDI, SIRIM, the Institute of Higher Education, FAMA and MIDF

Information / Extension & advisory Services Extension services are offered by agencies such as MITI, MARDI, SIRIM, MIDA (Malaysian Industrial Development Authority) and NPC to ensure the implementation of propose projects. These service are normally given as a follow-up to the Entrepreneurship Development Programme. Program Pembangunan Keusahawanan.

In class activity List and explain about the function of supporting agencies in Malaysia below. UDA PORIM MoF FRIM BIM MARA MARDI MEDEC MIDA MIDF MIMOS MITI SIRIM FAMA

In class activity Justify the sources of capital? List the business support things that can help the business to grow up. Location / place Price Promotion Product Technology Financial support Knowledge Training courses