ENT 530

INDIVIDUAL ASSIGNMENT
(ARTICLE REVIEW)

“ENTREPRENEURS’ INTENTION TO INVEST IN CURRENT

BUSINESS: AN EMPIRICAL STUDY OF MALAYSIAN SEME
ENTREPRENEURS”

PREPARED FOR:
MADAM NORLIZA BINTI SAIFUL BAHRY

PREPARED BY: NUR FARHANA BINTI BORHAN

MATRIC NUMBER: 2019527777
DATE OF SUBMISSION: 26/5/2020
 TITLE: INTENTION IN ENTREPRENEURSHIP

Mohd Hizam Hanafiah, Sh. Usman Yousaf, Noor Azuan Hashim. "Entrepreneurs' intention to
invest in current business: An emprical study of Malaysian SME entrepreneurs."
GEOGRAFIA (TM)Malaysian Journal of Society and Space (2016): 119-131.

The article “Entrepreneurs’ intention to invest in current business: An empirical study of

Malaysian SME entrepreneurs” were written by Mohd Hizam Hanafiah was a student from
Faculty of Management and Economics, University Kebangsaan Malaysia (UKM), and Sh.
Usman Yousaf was a student graduate from School of Business, University Kebangsaan
Malaysia (UKM) & Hailey College of Banking and Finance, University of Punjab.
Throughout my reading of this article it becomes clear that it is focuses on the relationship
between entrepreneurs’ personal goal attainment and their intention to invest by using the
theoretical framework based on entrepreneurs’ goal attainment theory (EGAT).

Introduction

The authors begins the article with introduce the method they used to gather the information
which they got the primary data from 285 Malaysian entrepreneurs through self-administered
survey questionnaire. The authors also stated the importance of entrepreneurship based on
past research which it can be also contribute to the enhancement of quality of life of a
community. Therefore, they also stated that studied entrepreneurship as a future direction of a
venture could determine its future with respect to survival, sustainability and progress of
business endeavour. Thus, they could summarize that intention of an individual itself are the
main base of their venture’s future shape and performance.

However, in this article, they noticed that any studies that are related to the intention of
entrepreneurs are very rare and hard to find. A review revealed that future intention has been
overlooked by past researchers because many researches are all about the financial
performances, marketing indicators or other indicators. But, the influence of personal goal
attainment on the entrepreneurs’ future intention to invest as an important indicator of
business has been a neglected research area which in this article they study to combine these
factors together and study them profoundly.

Literature Review

In this article, there are three points that the author outline which is first, the intention to
invest, second the personal goals of entrepreneurs and third, entrepreneur’s goals attainment
theory (EGAT). For the first literature review, intention to invest, we can see how the author
details what it is means by intention. Various scholars defined intentions in varying ways. In
general, intention considered as an individual’s indications of what he/she will do in the
future. Some other scholars deemed intention in different ways which is intention as earlier
part of behaviour. The author stated that very little search were carried out about the intention
in entrepreneurial literature, so in his study is to enrich the entrepreneurial literature by
investigating entrepreneur’s intention to invest in their current business.

For the second point, the author reflect that entrepreneurs literature acknowledge that non-
economic goals are also important for people to engage in entrepreneur endeavour. For
instance example of personal goals are self-esteem, high achievement, growth, independence,
monetary reward and support to family motivate people to do entrepreneurs activities. For
this research, the author itself has conducted an analysis and he found out that there are four
major goals among entrepreneurs which are economic gain, autonomy, intrinsic rewards and
family matter.

For the last point which is EGAT, the author clearly explains the meaning by EGAT and also
draw a figure to make people more understand about EGAT. Through EGAT, the author
found positive relationship of personal goals attainment with franchisees’ intention to remain
with the current franchise system.

Methodology

For the research method, the author use two method to gather information for this research.
First, using a sampling and unit of analysis and second is the measurement and
operationalization of variables.
For the first method which is sampling and unit of analysis, this research are specially
conduct to SME entrepreneurs and the respondent should be the owner/partner of the
business who actively manage the business and the business is not less than a year. Screening
question are made to identify respondent who are eligible to answer the survey.

For the second method, the measurement and operationalization of variables which there are
several type of questions that the author listed that were included in the survey. The author
using a table 1 to list out the question that he put in the survey for viewer’s reading. In my
opinion, the author should list out the questions in point form because it will be more
understanding and easily detected rather than combine the question in one line. The questions
were asked based on the entrepreneurs goals which is intention to invest, economic goals,
perceived autonomy, intrinsic rewards and family goals with a scale from 1-7 (strongly
dissatisfied-strongly satisfied).

Results

The results that were obtain for this research are from the questionnaire that were distributed.
About five hundreds questionnaires were distributed among SME entrepreneurs using eleven
field workers. However they only managed to obtain 307 questionnaire, 193 questionnaires
were written blank due to difficult to gain cooperation among entrepreneurs. 22
questionnaires have to been discarded due to don’t match with criteria required which the
respondent must be the owner/partner of the business. The total questionnaire usable received
were 285 questionnaire.

From the questionnaire, the author managed to collect personal and business background data
of all the 285 entrepreneurs. The author using the table 2 to show the results and he listed out
the characteristic, category and the number in percentage. In my opinion, the author should
make the table or the result in graph form which is we can clearly see the difference in
percentage between categories listed.

There are others results the author obtained from the questionnaire which is validity and
reliability analysis, multiple regression analysis. For the three analysis the table used in in
line with the results obtained and viewer can understand what the author try to show us.
Conclusion

From my observation, this study really meet the requirements as the tittle which the author really
focus on the intention of the SME entrepreneurs to invest in their current business. Many past
entrepreneurial studies contended the importance of personal goals and goals satisfaction for
entrepreneurs. However the influence of attainment of these goals on entrepreneurial
behaviour and attitude (e.g. behavioural intention) are rarely investigated in past. This study
aimed to fill this gap and through empirical investigation provides some answers.

From the author research, past researches did not consider intrinsic rewards as the most
significant goal for entrepreneurs’ intention to invest in their business. In this study, the
author found that intrinsic rewards as the most importance goals for entrepreneurs. This study
shows that Malaysian SME entrepreneurs share similar goals with other forms of
entrepreneur and with entrepreneurs in other countries. Secondly, past studies investigated
the Entrepreneurs Goals Attainment Theory (EGAT) on franchise business environment and
small business owners.

For recommendation, based on previous discussion, this study presents the following
recommendations for future researches. Firstly, future studies could utilize similar survey
instrument and replicate this research to other groups of entrepreneurs and/or other countries.
This would help the generalization of results of this study, strengthen the goals attainment
and intention to invest relationship, improve the validity and reliability of the survey
instrument and broaden the scope of this topic.

Secondly, future researches could incorporate mediating variable between the relationship of
personal goals attainment and intention to invest of entrepreneurs. Finally, it is recommended
to employ Entrepreneur’s Goal Attainment Theory (EGAT) to verify the suggested
propositions and it may provide more evidences on the relationships between goal attainment
and business outcome within entrepreneurial research.
References

Mohd Hizam Hanafiah, Sh. Usman Yousaf, Noor Azuan Hashim. "Entrepreneurs' intention to invest in
current business: An emprical study of Malaysian SME entrepreneurs." GEOGRAFIA
(TM)Malaysian Journal of Society and Space (2016): 119-131. <https://www.google.com/url?
sa=t&source=web&rct=j&url=http://www.ukm.my/geografia/images/upload/11x.geografia-
si-feb16-hizam%2520%26%2520usman-edam
%2520(1).pdf&ved=2ahUKEwiTiqi0y_3oAhVdwTgGHYWKD0EQFjADegQIBRAI&usg=AOvVaw0
skJqi4GxSNe2-sk9LM84o&cshid=1587612>.