1. 2.3 Business Support System
DFP6013 cyberpreneurship
2.3 Business Support System

2. 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.

3. 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

4. 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.

5. 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.

6. 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).

7. 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

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

9. 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

10. 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

11. 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

12. 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

13. 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

14. 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

15. 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)

16. 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

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

18. 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

19. 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.

20. 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

21. 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