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Failure rate among Bumiputera entrepreneurs still high - GABEM

Failure rate among Bumiputera entrepreneurs still high - GABEM
Abdul Rahim (pix) says as part of its effort to counter the high rate of failures among Bumiputera entrepreneurs, Gabem aimed to create more entrepreneurs among graduates. Facebook Photo / File
BANGI: The rate of failure among Bumiputera entrepreneurs are still quite high, said Federation of Malay Economic Bodies (Gabem) Tan Sri Abdul Rahim Tamby Chik.

He said out of 100 companies registered with the Companies Commission of Malaysia in the last five years, only 18 had succeeded.

"We are not satisfied with this situation, as only 18 companies had succeeded and able to sustain. Some of them (entrepreneurs) are still struggling while some others had to fold up," Abdul Rahim said.

Among the factors for the failure were the entrepreneurs' frivolity in business, lack of knowledge, guidance and networking, as well as failure to undertake market research prior to starting their business.
He told reporters this after officiating the Bumiputera Economic Patriotism Consolidation programme at University Kuala Lumpur Malaysia-France Institute (UniKLMFI) here Wednesday.

Also present was UniKLFMI Pro-Chancellor Datuk Seri Adham Baba.

Abdul Rahim said as part of its effort to counter the high rate of failures among Bumiputera entrepreneurs, Gabem aimed to create more entrepreneurs among graduates.

"If we can create more entrepreneurs among graduates, it would be easier for them to succeed as they are more knowledgeable.

"This would be in line with National Transformation 2050 (TN50), which is the nation's aspiration to see the younger generation play their role in ensuring that the success which has been achieved thus far will continue in the future," he said.

He added that Gabem would be conducting the Bumiputera Economic Patriotism Consolidation programme at 25 higher education institutions nationwide.

"The programme encourages graduates to enter the business field and to expand the current economic and business opportunities," said Abdul Rahim.

Meanwhile, Adham said the programme was in line with the university's aspiration to create more successful entrepreneurs in the technical field.

"Out of 6,000 graduates, 1,000 of them were those who became entrepreneurs while they were still studying and we have been training our students to become entrepreneurs since their first year," he said. --Bernama