Beruflich Dokumente
Kultur Dokumente
e-ISSN: 2278-487X, p-ISSN: 2319-7668. Volume 17, Issue 6.Ver. III (June. 2015), PP 62-69
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Abstract : The aim of this study was to determine the factors that influence in Growth Domestic Product
(GDP) contribution by Small and Medium Enterprises( SME) in Malaysia. This research has looked at the
various factors which contribute on SMEs such as labour wages, unemployment rates, net exports and inflation
rate. The entire population 3292 SMEs in Malaysia. The research used convenience sampling method to choose
the samples. In addition, the research instrument utilized in this research was a secondary data and the results
obtained were analyzed using regression anlaysis. The result indicates that labour wages and net export are the
key factors highly contribute SMES performance .The study recommends how the Malaysian SMEs can
improve their performance and contribute to the national production .furthermore SMEs concern to this factors
and enhance their performance towards the Malaysian 2020 vision.
Keywords Inflation rate, Labour wages, Unemployment rates, Net Exports, SMEs Performance.
I.
Introduction
Malaysia has adopted a common definition of SMEs to facilitate identification of SMEs in the various
sectors and the subsectors. Generally, an enterprise is considered an SME in each of the respective sectors based
on the Annual Sales Turnover or Number of Full-Time Employees. Normah (2007) [1] stated that, the SMEs
have been the backbone of economic growth of an economy in driving industrial development. Their role in the
Malaysian economy will strengthen the resilience of the country to face a competitive and challenging global
environment. In Malaysia SMEs corporation classified into two major categories. One is manufacturing sector
and other one is service sector. In each category also classified in to subcategory base on annual sales turnover.
The table below explains into details.
Table 1.1: Source: SME Corp Malaysia, official website.
Small
Enterprise
Annual sales turnover
from RM250, 000 to less
than RM10 million and
full time employees from
5 to less than 50.
Medium Enterprise
Manufacturing-Related
Services
Agro-based industries
Micro
Enterprise
Annual sales turnover
less than RM 250000 and
full time employee less
than 5.
Primary Agriculture
Information
and
Communication
Technology (ICT)
Sales
turnover
from
RM200,000 to less than
RM1 millionand full time
employees between 5 and
19
Type
Manufacturing
Services
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II.
Literature Review
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DOI: 10.9790/487X-17636269
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METHODOLOGY
Dependent Variable
Labor Wages
GDP contribution by SMEs
Inflation Rate
Net export
Unemployment rate
IV.
DOI: 10.9790/487X-17636269
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The graph above shows the level of wages increment in Malaysia in 2005 to 2013. The graph itself
indicated labour wages rate of each year. Its clearly show the wage rate increase slowly. In addition, the rate
percentage compare to 2005 and 2013,its increase by 3.7%. Even though its the small level of increase but it
may influence in labour force and the performance.
Graph 4.2.3: Inflation Rate
The graph below mentioned the inflation rate in Malaysia in 2005 to 2013. The graph indicate inflation
rate of
each year. Its show the rate almost the same level when compare to 2007. However inflation rate in Malaysia
2010 to 2013 time period closed to 3.2 between 3.4 %.
Graph 4.2.4: Unemployment Rate
DOI: 10.9790/487X-17636269
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The graph above shows net export in Malaysia in 2005 to 2013. Its indicating the percentage of net
export of each year. Its clearly indicating the rate increase slowly. When compare to year 2005and year 2013 its
increase by 5%. Even though its the small level of increase but it may influence in SME performance and
contribution towards national production. The contribution of net exports (of goods and services) to real GDP
was 5%.
4.2 Simple Linear Regression Analysis
A linear regression model attempts to explain the relationship between two or more variables using a
straight line. A linear regression line has an equation of the form Y = a + bX, where X is the explanatory
variable and Y is the dependent variable. The slope of the line is b, and a is the intercept (the value of y when x
= 0).
Hence, the simple linear regressions were performed between SME contribution as a dependent variable,
unemployed rate, inflation rate, net export and wages rate as independent variables.
4.2.1 Unemployed rate vs SME contribution:
Model
1
R
.569(a)
R Square
.323
Adjusted
Square
.227
Y=a+bx
Based on the table, an unemployed result shown the R is 0.323. This means that approximately 32.3% of
unemployed rate influence the SME contribution.
4.2.2 Inflation rate vs SME contribution:
Model
1
R
.199(a)
R Square
.039
Adjusted
Square
-.098
Coe fficientsa
Model
1
(Cons tant)
INFLATIONRATE
Unstandardiz ed
Coef f icients
B
Std. Error
32.103
1.356
-.183
.405
Standardized
Coef f icients
Beta
-.168
t
23.678
-.452
Sig.
.000
.665
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R
.755 a
Adjusted
R Square
.509
R Square
.570
Std. Error of
the Estimate
.85546
Coe fficientsa
Model
1
Unstandardiz ed
Coef f icients
B
Std. Error
18.385
4.321
.468
.153
(Cons tant)
NETEXPORT
Standardized
Coef f icients
Beta
t
4.255
3.047
.755
Sig.
.004
.019
Based on the coefficient table, the net export result shown B=0.755and significant at 0.019 (p= <0.05)
level. The Beta coefficient is 0.755 for net export supports with SME performance. The R is 0.570 means that
approximately 57.0% of net exports influence the SME contribution.
4.2.4 Wages rate vs SME contribution:
Model
1
R
.994(a)
Adjusted
Square
.986
R Square
.988
Coe fficientsa
Model
1
(Cons tant)
WA GESRATE
Unstandardiz ed
Coef f icients
B
Std. Error
5.057
1.096
.946
.039
Standardized
Coef f icients
Beta
t
4.615
24.178
.994
Sig.
.002
.000
Based on the coefficient table, the wages rate result shown B=0.994 and significant at 0.000 (p= <0.05)
level. The Beta coefficient is 0.994 for net export supports with SME performance. The R is 0.988 means that
approximately 98.8% of wages rate influence the SME contribution.
4.3 Overall result in hypothesis :
Hypothesis
R2
H0:There is no significant relationship between the labor wages, inflation rate, net
export , unemployed rate and the GDP contribution by SMEs in Malaysia
H1:There is significant relationship between the labor wages and the GDP contribution
by SMEs in Malaysia
H2:There is significant relationship between the unemployed rate and the GDP
contribution by SMEs in Malaysia
H3: There is significant relationship between the inflation rate and the GDP
contribution by SMEs in Malaysia.
H4: There is significant relationship between the net export and the GDP contribution
by SMEs in Malaysia
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Result
Relationship
status
-
0.998
Strong
Accepted
0.323
Moderate
Accepted
0.039
Weak
Rejected
0.570
Good
Accepted
Rejected
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Conclusion
Finally, the research objective is achieved with the research that has been conducted, the effective
factors on the SME contribution are wages rate followed by net export, and these two factors are highly
contribute to the dependent variable. Unemployed rate is also influence in a positive way towards SME
contribution on GDP. However one of the independent variable is not supporting the hypothesis in this research.
It contribution towards SME contribution on GDP is only 3.7%. All the hypotheses for this study are significant
at 0.000 which mean accept the hypothesis except for inflation rate and therefore it has to reject the null
hypothesis. The relationship between dependent variable and independent variable are related with each other
especially wages rate which is the main factor that influence on SMEs performance and productivity.
Future research is required not only to confirm the results found on this research, but also to overcome
the limitations previously mentioned.
In order to gain more data and output about this study, a
longitudinal study should be examined for the future research.
Future researcher may have a focus on SME contribution in different perspective. In the future, more
surveys can be developed in SME contribution on GDP and narrow down the scope into manufacturing, service,
mining and agriculture areas. These will help to identify more specific on each sectors dimension on SME
contribution on GDP in a broader level.
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