Developing a framework of success ofBumiputeraentrepreneurs

Purpose - Entrepreneurship in developing countries is arguably the least studied significant economic and social phenomenon. Previous studies focused on describing the attributes of entrepreneurship rather than providing a framework, in which entrepreneurs and policy makers alike can rationally plan and execute innovative business models. Current issues facing Malaysian entrepreneurs include low level of technology, lack of innovation through research and development, low working capital, and of highly domestic orientations. This led to a lack of resilience and efficiency among the entrepreneurs, thus rendering them ill‐equipped to compete globally. This adverse scenario is increasingly apparent amongBumiputera(Native of Malaysia) entrepreneurs as the growth of entrepreneurial activity has not been in tandem with the pace of the overall development of the nation. Hence, this study seeks to identify factors leading to success and failure so thatBumiputeraentrepreneurs can prevent failure by correcting problems, and appreciate what it takes to succeed. Ultimately, a framework of success is proposed as a comprehensive tool to enhance their survival in a competitive global economy. Design/methodology/approach - A survey instrument was used, and a total of 1,500Bumiputeraentrepreneurs participated, covering all the states in Malaysia. Findings - The findings confirmed that eight factors are vital to the success ofBumiputeraentrepreneurs. In rank order of importance, these factors are advancement drive, achievement oriented, commitment, decision‐making ability, managing risk, tenacity, networking, and optimism. As for the factors leading to the failure ofBumiputeraentrepreneurs, inability to compete, lack of competency and capital, customer‐related problems, employee‐related problems, unfavourable economic conditions, bureaucracy, supplier discrimination, and negative community attitudes were found to be crucial. Originality/value - The paper develops a framework to aid the success ofBumiputeraentrepreneurs in Malaysia.