åEssay

“The Covid-19 pandemic given huge effect to the current economy

situation worldwide. The business was dropped drastically even to the big
company. To overcome this issues, government has taken a few step to
reduce the effect of this pandemic especially toward the enterpreneur”
towards entrepreneur relief during the pandemic.

Part 1
a) Three institutions that responsible in SME development of in Malaysia.
1. Amanah ikhtiar Malaysia (AIM)
2. Majlis Amanah Rakyat (MARA)
3. Perbadanan Usahawan Nasional Berhad (PUNB)

b) Two phase of start up financing that could be taken by an entrepreneur

in sustaining their business.

There are stages of financing that could be taken by the startup

entrepreneur to make sure their business stay together. The first stage is
known as concept financing. During this stage, the entrepreneur is
developing and completing an initial validation of a business concept.
Financial resources will be minimal, often consisting of self-funding or
loans from friends and family members.

The second stage is known as launch financing which involves risk

because the entrepreneur will have to incorporate his idea with the investor
to make sure the increased cost could be covered by the investors. The
increased cost could be spent towards hiring personnel and creating
relationship with partners , suppliers and customers.

 c) Describe TWO (2) initiative created by the Malaysia government with

it’s impact

Among the initiatives proposed by the Malaysian Government includes,

PENJANA initiatives to increase the power buying ability to the consumer
by providing them with additional money. This could off course increase
the economy as the consumer will spend the money to buy product and
finally making sure the economy stays at its cycle. The negative impact to
this is the funding given to customer by the government will increase the
debt of the government which finally will affect the consumer as the rate
of tax will soon increase or if the extra funding from the government was
is taken from the EPF saving of the consumer, it will soon affect the
consumer sustainability when they finally quit their job.

Other initiative by the government to help entrepreneur including the

moratorium without increase interest rate. This could save many
entrepreneurs because they does not have to pay for the extra cost of rental
or repayment and only focus on their business sustainability. However, the
negative impact to this is, the profit margin of the financial institute is
being covered by the government itself which finally leave the same
impact as the previous writing.



PART B: 10 MARKS
Answer any One (1) Set of Question .
Question 1:
Answer all the following questions:
(4 marks)
a) Explain briefly any TWO (2) platform of fintech technology that
entrepreneur can use in their business.
There are many platform of fintech technology that entrepreneur can use in
their business. First, they can use crowdfunding platforms. This platform
like a kickstarter, GoFundMe and Patreon. The platforms allow
entrepreneurs and early-stage businesses to raise funds from all over the
world, so it will make the start up can use with the easy way search the
funding. Then it is allowing them to bypass geographical boundaries and
reach international markets and investors.
Other than that, they can use platforms like a mobile payment. This
platforms is super easy to use it because in this era, we knew that majority
citizens in Malaysia had the phone to use for any situations and search
anything that their need to know. Such applications give authority for users
to implement the banking activities without physically visiting a bank. So
it is a safety way to entrepreneur use it anytime.
(3 marks)
b) Explain TWO (2) approach to mitigate risk from fraud and scam in
digital transactions.
In a recent global banking fraud survey, cyber-related fraud was found to
be the most significant challenge faced by financial institutions today. As
billions of stolen dollars make their way into fraudsters’ pockets each year,
banks stand to lose more than the money, but their customers and brand
reputations too. So, some of the approach to mitigate the risk from fraud
and scam in digital transaction is the bank have to give the education to the
customers like showing them tips on safe transaction. This can make sure
the bank gain trust from its customer by showing them the way to protect
the account from fraudulent.

In the world where everything is completed digitally, the second approach

to avoid fraud and scam is as easy as downloading and apps from
playstore. This app could save us from fraud and scam by telling us the
suspicious number received in our cellphone or can easily block the
doubtful link sent to us within e-mail.

(3 marks)
c) Propose TWO (2) strategies for local consumer in helping SME
entrepreneurs towards business sustainability.
1- Supporting local brand and product no matter how expensive they are.
Supporting does not mean you have to always buy the product, but
supporting can include leaving honest review on the product whether it
was good or bad. By doing this, the SME entrepreneur should be able to
improve their product to the better.
2. Avoid price negotiation as much as possible especially something that is
considered cheap and reasonable. The SME usually has lower profit
margin because they could'nt afford buying in bulk. So the price of the
goods could’nt be offered lower as they bought the item with higher price.
So our effort in helping them include buying with the price tag without
negotiation.