DPB2012:

ENTREPRENEURSHIP
CHAPTER 7 : ENTREPRENEURIAL SOURCES OF CAPITAL AND
SUPPORT SYSTEMS

LEARNING OUTCOMES
7.1 Distinguish business support systems
7.1.1 Justify the sources of capital for
entrepreneurship
activities
7.1.2 Classify types of business support

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Capital any form of wealth employed to produce
more wealth for a firm
It is basically the amount of money needed to start up
a business and run the business activities
There are various sources of capital that are available
for setting up or developing a business

Person
al
funds
Family
&
friends

Stock
market

Capit
al
Retireme
nt
accounts

Governme
nt loan
Bank /
Financial
institutio
ns

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Personal
Are the first
source of
Funds
capital
Uses personal funds or
savings to gain the
confidence of investors
and lenders
An entrepreneur must
ensure that the business
is feasible before
investing his personal
savings to safeguard
himself from losing

Family &
Friends
Is another important source
of financing sought by
entrepreneur after using
their own funds
Easier to raise as it is based
on personal relationship and
trust
It is advisable that
entrepreneur repays his
loan as soon as possible to
avoid damaging relationship

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Retireme
nt
Accounts
An entrepreneur
would have saved
funds for retirement purposes.
Therefore, he can use this money to
fund the development of his venture.
Funds from the pension scheme for
from EPF may also be enough to start
up business
If the entrepreneur fails in his
business, he may have to live more
frugally after retirement

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Financing
by bank /
financial
institutions
Long-term
financing

Medium-term
financing

Period
between 5
25 years
Used to
acquire fixed
assets e.g.
land, building,

Period
between 1 8
years
Covers hire
purchase,
lease, loan
agreements

Short-term
financing
Period less
than 1 year
E.g. overdraft

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Governme
nt loan
Provides loan to assist entrepreneurs
in running ventures as well as to
develop our economic growth rate
Government provides various grant &
government subsidized loan to
encourage investment & development
E.g. MARA,SME Bank, PNB, SME Corp
etc.

SOURCES OF CAPITAL FOR

ENTREPRENEURSHIP
Stock
market
Some of entrepreneur prefer to invest
in stock market for the intention of
raising the capital
E.g. issuance of ordinary shares,
bonds, investment in other company
etc.

TYPES OF BUSINESS SUPPORT

BUSINESS
SUPPORT
SYSTEMS

Is an aid in terms of financial &

technical services by the
government & other private
agencies
With the knowledge of business
support systems, the entrepreneur
will be able to carry out his
business smoothly & make
informed decisions when faced with
any uncertainties in his new
venture

TYPES OF BUSINESS SUPPORT

Financial
support

Entrepreneu
r&
managemen
t training

Technical &
technologica
l support

Informationa
l support

Extension &
advisory
services

Research &
project
recognition

Marketing
support

Infrastructur
e support

FINANCIAL SUPPORT
Provided by financial institutions for an entrepreneur
to start and perform a business
Assists in establishing the factorys site, buying office
equipment, purchasing machinery & capital turnover

ENTREPRENEUR & MANAGEMENT

SUPPORT
Provided to train entrepreneurs to obtain necessary
skills in the relevant field and knowledge in the area of
management
Build the entrepreneurs confidence and give them
encouragement

TECHNICAL & TECHNOLOGICAL SUPPORT

Increase technical knowledge by attending
educational courses provided by several agencies in
Malaysia
To expose entrepreneur to the latest production
methods & systematic management
Learn about the latest technological advancement in
the manufacturing & management field

INFRASTRUCTURE SUPPORT
Provide suitable business locations which are
appropriate with the business whereby the location or
premise is equipped with all types of facilities including
utilities
Help entrepreneur to decrease issues and problems
related to the premise and industrial site

MARKETING SUPPORT
Perform to penetrate the sale of products or services
offered by the business
Support services in marketing distribution and product
or services marketing locally throughout the country
Help entrepreneur distribute and market his products
locally & internationally

RESEARCH & PROJECT RECOGNITION

Includes project possibilities, marketing research &
research on technology
Help the entrepreneur to increase efficiency,
technological achievement, production, as well as
produce better quality products
To ensure that the entrepreneur will be able to
compete in the local or international arena

INFORMATIONAL SUPPORT
Offered to an entrepreneur in the form of business
opportunities, statistics, discovery, research and
development, and technological development

EXTENSION & ADVISORY SERVICES

Conducted by MARA, MITI, MEDEC, MATRADE
Involved in consulting and monitoring the
implementation of the proposed project to ensure no
hiccup happens while carrying out the business
operations
Small fees are charges depending on the scope of the
services. In return, tax reduction and exemption are
given to the entrepreneur

THE END