An empirical investigation of the business success of small and medium enterprises (smes): evidence from the retail sale of foods, beverages, and tobacco in Labuan

• Main Author: Ridwan Ajit
• Format: Thesis
• Language: English; English
• Published: 2024
• Subjects: HD72-88 Economic growth, development, planning
• Online Access: https://eprints.ums.edu.my/id/eprint/41462/1/24%20PAGES.pdf; https://eprints.ums.edu.my/id/eprint/41462/2/FULLTEXT.pdf; https://eprints.ums.edu.my/id/eprint/41462/

The establishment of small and medium enterprises (SMEs) around the world increased rapidly over the past decade including in Malaysia. SMEs were one of the major contributors to Malaysia's gross domestic product (GDP). It spurs the development of the country by providing employment, increasing household incomes, and fostering economic growth. There were a huge number of studies conducted on factors that influence the success of SMEs. However, studies on rural and small geographical areas were limited. Therefore, this study examines the relationship between owner-managers personal characteristics (gender, age, ethnicity, language, education level, and experience), business characteristics (the year in business, financial resources, type of customer, and the number of employees), business location and the business success of the SMEs in Labuan. Data were gathered from 126 owner-managers of retail SMEs that sell foods, beverages, and tobacco located in Labuan. The data were collected using a questionnaire and analysed with Statistical Package for Social Science (SPSS) software version 28. Descriptive statistics, one-way analysis of variance (ANOVA), and Pearson correlation coefficient were employed to examine the relationship between owner-manager’s personal characteristics, business characteristics, business location, and business success. The study found that the number of employees and business location have a significant relationship with business success. The outcome of this study provides relevant information on the factors affecting the business success of SMEs in Labuan. It enhances the literature and contributes additional knowledge, especially as a preliminary study that provides a preview of the nature of the relationship between owner-manager’s personal characteristics, business characteristics, business location, and business success in a small geographical area.