Entreprenuerial Intention

This news headline caught my attention.......

`Time really has changed where there are not many ready jobs waiting for graduates althrough there are abundant opportunities in etrepreneurship. Graduates must look at these opportunities which will provide them the chance to be their own bosses.' said Datin Fatimah Abdullah, Assistant Minister in the Chief Minister's Department.

No doubt, in the `Land of Hornbill' there are plenty of business opportunities, especially with the implementation of SCORE project. Of course, most graduates equip with required knowledges and skills well enough to give them confidence to become entrepreneurs. And there are always courses or seminars available to enhance the required knowledge, if necessay.

But, Knowledge or skill is not the only prerequisite for any graduate to become or try to be an entrepreneur of respective field. Financial ability is all an importance factor to enhance a successful entrepreneurial intention. Dr Antony Hii revealed that many entrepreneurs were groomed into the field from a young age. Although he further clarified that this did not mean that those not from an entrepreneurial family would not become entrepreneurs. The fact that only the rich have the luxury of money and time for their children to venture into business is still undeniable.

Parents from a poor families will definately feel financially relief upon their children's graduation. They won't have extra saving for their children to venture into businesses. These graduates definately understand the need of loosen their parent's financial burden upon graduation. And looking for a decent job is the only solution. That is a reason why graduates still have the conventional mindset of hoping to land a job in the civil service or government linked companies. Due to their family financial burden, they cannot afford to fail, eventhough they dare to.

Setting up a business, no matter big or small, requires capital. The only source of capital for graduate will be from the family members. Own saving is definately out of the question. Borrow from commercial bank will not be an option too, because other than a good business plan, bank requires collateral and personal commitment. To successfully set up their new businesses, these graduates will have to keep their fingers cross, hoping that one day an angel will appear to invest in their business idea.

Recently, the Government had established the Working Capital Guarantee Scheme through SJPP, a company whole owned by Ministry of Finance Inc. And it was the desire and hope of the Government of Malaysia that by providing such guarantee, financial institutions will continue to provide fiancing facilities to companies within the targeted sectors. But, the beneficiaries are still the established SMEs.
These schemes will limits banks' risk explosure to only 20% of new loan, while the balance 80% will be covered by a government guarantee. Till then, let see what our next speaker has to offer in this coming Entrepreneurship Class in regard to the setting up of new businesses.