Understanding and promoting small and medium enterprises' business growth within the food and beverages sector in Terengganu, Malaysia

Engku Md Azmi, Aiesyah and Whitham, Roger (2022) Understanding and promoting small and medium enterprises' business growth within the food and beverages sector in Terengganu, Malaysia. PhD thesis, Lancaster University.

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Abstract

This research investigates the underlying barriers to business growth among small and medium enterprises (SMEs) in Terengganu, Malaysia. The majority of over 98% of SMEs in Terengganu never grow to the size of a ‘small’ enterprise, and many remain stagnant, never achieving significant growth. This research develops a holistic view on SMEs’ business growth barriers and opportunities in Terengganu, and explores the factors affecting these SMEs’ business growth. It explore the relevance of branding strategy to these businesses and the relevance of branding strategy in promoting business growth. The central focus of the study presented in this thesis is to understand the factors that shape business growth so that practical tools to assist SMEs can be developed. A qualitative study was conducted with 15 SME experts and 15 SME business owners (BOs) within the F&B sector in Terengganu, Malaysia. The study identifies that SMEs’ business growth is constrained by factors relating to financial inadequacy, individual attitudinal motivation and poor knowledge management. It reveals that even though branding strategy is claimed to have significant impact on SMEs’ businesses, microenterprises in Terengganu are not ready to apply a branding strategy as represented by existing research literature. Thus, prior to the application of branding strategy, this research proposes and tests the development of a pre-branding strategy as a practical tool to assist and encourage SMEs towards growth. One of the outcomes of this research is a tool, entitled the IGS (Initial-Growth-Sustain) Strategy, which was designed and validated in context. BOs in Terengganu may find the IGS strategy a useful tool to evaluate their limitations, potential and risk before embarking further into their action plan as well as executing a branding strategy.