Extant literature suggests that the influence of entrepreneurial capabilities and practices on business performance is inconclusive especially with the use of questionnaire surveys where the complexity of the contexts of study is overlooked. This study examines how Chinese SMEs’ entrepreneurial capabilities and practices are continuously developed in response to changing contextual circumstances in Malaysia. This study appraises the inextricable connection between the historical development of Malaysia and Chinese entrepreneurial capabilities and practices. An interpretive case study was conducted where interviews with the founder cum owner-manager, project managers, administrative and operational personnel shed light on how the case firm overcomes various challenges and captures opportunities in the process of developing entrepreneurial capabilities and practices for more than four decades. Chinese SMEs demonstrate a staunch desire for self-sufficiency and progress in the face of adversity. The case firm demonstrates constant upgrade in efficiency, effectiveness, and contributions to the value chain, which reflects the very essence of entrepreneurship, i.e. from rags to riches. The results of this study serve as a guide for aspiring entrepreneurs. As for policymakers, this study sheds light on the importance of initiatives aimed at character-building to promote life-long learning among SMEs rather than financial assistance, which does little to encourage the quest for self-sufficiency.

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