DETERMINANTS OF SUCCESS FACTOR FOR GREEN ENTREPRENEURSHIP PRACTICES IN MALAYSIAN SMES

Abstract

The green entrepreneurship concept is gaining significant momentum and is considered one of the key drivers for the green economy due to sustainable development. In Malaysia, small and medium enterprises (SMEs) form and contribute tremendously to the growth of Malaysia's domestic products as a rapidly developing country. Much effort has been made over the recent years to strengthen green practices among entrepreneurs. However, this topic has yet to be given less limelight concerning the SMEs in Malaysia. Thus, this study aims to investigate factors influencing the practice of green entrepreneurship among SME entrepreneurs in Malaysia. The study opted for non-probability and quantitative techniques. A sample of 169 entrepreneurs of Malaysian SME organisations was returned and usable. The data were analysed using the Partial Least Squares approach. Based on the study, the availability of capital and entrepreneurial knowledge enhances SMEs' green entrepreneurship practices. This could be attributed to the importance of green entrepreneurship in Malaysia. The factors influencing green entrepreneurship were found to have variable effects on the practices. Since green entrepreneurial practices by SMEs in Malaysia were still in the nascent stage, it was recommended that relevant stakeholders should put in place measures meant to spur adoption and implementation by most entities, including SMEs. Furthermore, through its appropriate authorities, the government should enhance support for green product innovation, and the investors in green entrepreneurship should form a lobby to enable them to have strong negotiating grounds with other stakeholders.