Entrepreneurs’ intention towards halal industry in Malaysia

• Main Author: Supaat, Siti Hindun
• Format: Thesis
• Language: English; English
• Published: 2020
• Subjects: H Social Sciences (General); HB Economic Theory
• Online Access: http://eprints.utem.edu.my/id/eprint/25987/1/Entrepreneurs%E2%80%99%20intention%20towards%20halal%20industry%20in%20Malaysia.pdf; http://eprints.utem.edu.my/id/eprint/25987/2/Entrepreneurs%E2%80%99%20intention%20towards%20halal%20industry%20in%20Malaysia.pdf; http://eprints.utem.edu.my/id/eprint/25987/; https://plh.utem.edu.my/cgi-bin/koha/opac-detail.pl?biblionumber=121221

In Malaysia, Small and Medium Enterprises (SMEs), across sectors in industry have proven to be the backbone of the economy. The desirable increase among the Muslim community in Malaysia causes the need for Halal product to grow. Hence, efforts to produce and develop more successful entrepreneurs in SMEs need to achieve their goals and necessity to fulfill the nations aspiration through the “National Entrepreneurship Policy 2030” (NEP 2030) that began in 11st July 2019. Yet, in this respect, the entrepreneurs attitude, even though they have become an entrepreneur, still maintain the passive nature of the mentality which is inconsistent with the original NEP objectives. It is therefore desirable that a study should be conducted to examine and develop a deep understanding of entrepreneurial attitudes and behavioural intentions among entrepreneurs of SMEs to involves and sustain in the halal industry. In line with NEP 2030, this also marks as primary step in identifying the emergence of factors for improving the SMEs performance. Examination of the literature through the application of the Theory of Planned Behaviour (TPB) recommended that there are six factors that influence the SME entrepreneurs intentions to involve in halal industry, specifically: halal awareness, halal business motivation, family support, peers influence, feasibility, and government support. A framework consisting of six independent variables and one dependent variable was developed. In order to meet the research objectives, this study employed quantitative method by conducting a self-administered survey questions to 357 SMEs in food preparation. Only 250 responses out of 357 questionnaire were distributed. The distribution of questionnaires was conducted by hand and through electronic mail. The same method was applied in data collection. The outcomes from correlation and multiple regression have identified that halal awareness, family support, feasibility and government support were definitely important to the entrepreneurs intention to involves in halal industry. Consciousness of factor effected to SME entrepreneurs would enhance the intentions of SMEs food manufacturing in the halal industry. In supposition, this study provided clearer understanding of the circumstances of the SMEs entrepreneurs behaviourial intentions in Malaysia and offer several implications for research, policymakers, and practitioners.