2009
DOI: 10.22439/cjas.v27i1.2217
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The contradiction of entrepreneurship through affirmative action

Abstract: Malaysia's affirmative action, introduced as the New Economic Policy (NEP) 1 in 1971 to redress Malay economic setbacks, failed in its objective to acquire 30 percent equity of Malaysian public companies for Malays by 1990. This failure was translated into the government's failure to develop a sufficient number of Malay entrepreneurs with the skills to meet this target. The government had devised affirmative action under the NEP in the belief that it was a recipe for entrepreneurial development. This paper arg… Show more

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Cited by 5 publications
(6 citation statements)
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“…Malaysia is among the few countries globally that incorporated an affirmative action policy that guarantees the ethnic Malay majority preferential rights to government projects, public administration recruitment, and tertiary education admissions. Hence, this “ crutch-mentality ” culture, in some ways, goes against the spirit of entrepreneurship by eliminating the psychological aspects of risk-taking and resilience ( Shome and Hamidon, 2009 ). Malaysian entrepreneurs, in some ways as this study has indicated, have gradually shifted their mindset away from the legacy ways of overdependency on government-related assistance and political affiliations.…”
Section: Implications and Limitationsmentioning
confidence: 99%
“…Malaysia is among the few countries globally that incorporated an affirmative action policy that guarantees the ethnic Malay majority preferential rights to government projects, public administration recruitment, and tertiary education admissions. Hence, this “ crutch-mentality ” culture, in some ways, goes against the spirit of entrepreneurship by eliminating the psychological aspects of risk-taking and resilience ( Shome and Hamidon, 2009 ). Malaysian entrepreneurs, in some ways as this study has indicated, have gradually shifted their mindset away from the legacy ways of overdependency on government-related assistance and political affiliations.…”
Section: Implications and Limitationsmentioning
confidence: 99%
“…Accordingly, economic activities in Malaysia have been historically segregated along the racial lines whereas different ethnic groups dominate different sectors (Minai & Lucky 2011). For example, Indian-Hindus are highly represented as professionals despite being the smallest group (Shome & Hamidon 2009), meanwhile, Chinese-Buddhist have traditionally owned most of business enterprises (Omar 2006). As a result, although Malay Muslims are recognised as the original settlers of Malaysia, their economic activity concentrates in rural areas that resulted in lower economic position than other ethnic groups.…”
Section: Government Favouritism Toward Religions In Malaysiamentioning
confidence: 99%
“…In fact, the poor performance of Malays in business activities despite their political dominance is persistent since Malaysia became independent from British colonial rule on August 1957. The number of Malay entrepreneurs is not only small but mainly relegated to traditional sectors such as agriculture and mining, which are struggling to keep up with more high value industries (Shome & Hamidon 2009).…”
Section: Government Favouritism Toward Religions In Malaysiamentioning
confidence: 99%
“…Our DINA series mainly includes data from four sources: national accounts, household income surveys, fiscal data, and demographic statistics. 1984, namely, HIS 1984, 1989, 1997, 2002, 2004, 2009, 2012. HIS data are normally available in two forms: household-level and individual-level data.…”
Section: Data Sourcesmentioning
confidence: 99%