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EVERY small and medium enterprise (SME) has the potential to become a big
conglomerate if it is being managed accordingly. It has to be led by a competent and
forward-looking entrepreneur who is willing to put in the effort to grow the company.

But effort and competence aside, a lot of skills, expertise and team work are needed.

Malaysian Institute of Management general council member Zul Baharom (J
) says an

entrepreneur is a person who gauges the risks and rewards of a business and works
quickly to initiate, organise, and manage a particular opportunity, idea or concept.

³The key words are µrisk¶ and µbusiness¶. The entrepreneur will often risk more, work
harder, and demand more of himself or herself than any ordinary business person. The
rewards, however, can be immeasurable,´ he tells 
.

He says some people regardless of age, race or religion have a background or tradition
of doing business and the spirit of entrepreneurship comes to them naturally.

³These people progress to become entrepreneurs while others are comfortable with the
security that comes with working for an established organisation,´ he says.
He says Malaysians are blessed living in a country with a diversity of race, culture and
religion. However, before coming up with that great idea, entrepreneurs must first be
willing to spend time researching a chosen subject.

³A winning idea requires preparation, research, and an ability to think laterally. Actually,
a lot of ideas come from casual observation whether we are just starting out, looking to
expand, or already in control a number of successful businesses,´ he says.

He says creativity comes from experience and observation while inspiration does not
simply come in a flash if we do not have a certain skill or competency.

³It¶s far easier to be creative when we enjoy and understand the mechanics of what we
are doing,´ he says.

Zul points out that many entrepreneurs of the old school take pride in the fact that,
despite an abbreviated education, they have accomplished a great deal through their
experiences at the ³university of life.´

However, he says the modern entrepreneur faces a more complex world and needs a
solid education.

³Don¶t let anyone tell our youngsters that a successful entrepreneur doesn¶t recognise
the importance of technical know-how. However, superb academic qualifications, even
from the most prestigious institutions, does not guarantee success at any level of the
corporate world or even SMEs,´ he says.

He says franchising is perfect for the first-time entrepreneur, as agreements can be

granted for a single shop or store, adding that the contract, normally for between 10 and
20 years, often has a development requirement, sales projections, and a time limit in
which to achieve results.

³Franchises enable you to gain access to information and technology that you would
otherwise have to spend a lot of money developing. This is a quick way to benchmark
your product or business. There are franchises everywhere ± in fashion business, car
sales, opticians and in the hospitality industry,´ he says.

Many of these franchises originate as ideas from small investors or entrepreneurs,

which are then developed by others into major concepts.

Commenting on entrepreneurship in Malaysia, SMI Association of Malaysia

national president Chua Tiam Wee says the rate of new business start-ups in Malaysia
is very low compared to developed countries.

³New companies in Malaysia normally originate from existing businessmen or those

whose families already have a business which they later diversity into something else,´
he says.

He says most people would choose to start a business they are knowledgeable about
and have the necessary technical skills.

³We do have a lot of successful entrepreneurs in Malaysia who start small but with
innovation in place,´ he says, adding that they are people who are willing to work hard,
take risk, are efficient and more importantly, make it without much government
subsistence.

He says many successful companies started small, such as Genting Bhdand Public
Bank Bhd. Thus, SMEs should not be afraid of venturing into bigger businesses and
explore more opportunities.

³They need to be brave and passionate. They need to do something that others dare
not to. They should be innovative by creating demand for their products and searching
for demand,´ he says.

Chua says successful entrepreneurs need to be supported by a group of good talent,

hence they have to search for talents and grow the business with them.
³Some entrepreneurs are unsuccessful because they are unproductive. They
concentrate on producing low-value products when they should be putting in more effort
in research and development and marketing,´ he says.

He says the Government has a role to play to nurture the spirit of entrepreneurship
which he sees as beginning at the school level.