There has been considerable research conducted on factors affecting the performance of SMEs in developed countries.

In contrast there is inadequate research of a similar nature in developing countries particularly in Malaysia. Therefore, the present study makes an attempt to add to the existing research by probing into the factors such as effective entrepreneurship, appropriate HRM, use of marketing information and application of IT that will affect the performance of Small and Medium Enterprises (SMEs) in the manufacturing sector of Malaysia. SMEs have been developed strongly and contributed to the employment, GDP, and the nations volume of exports. By prioritizing SMEs development, SMEs will be aimed to increase the contribution to GDP from 31% in 2010 to between 35% and 40% by 2020, as well as increase the contribution to exports above 19%. The development of SMEs is also contributing towards growth through employment creation. Therefore, this study is important to give assistance for managers on managing SMEs successfully that will lower the unemployment rate from 3% in 2011 to much lower in future. Essentially,SME entrepreneurs will become more knowledgeable and effective in the management of their enterprises through the findings of the present studyon SME management practices. This study will also contribute to the management of SMEs in the manufacturing sector of Malaysia to assist them to improve their performance in long term development and growth.