KUALA LUMPUR, Aug 9 — The government should start to have more comprehensive indicators for Tekun Nasional on its impact and output rather than input and the process of the funding initiative, said Putra Business School Associate Professor Dr Ahmed Razman Abdul Latif.
Ahmed Razman said in the past, Tekun Nasional allocated millions of ringgit in funding to deserving informal and micro entrepreneurs and they measured the success of the initiative through the amount being allocated and the repayment rate.
“The (downside of this method of measurement) is that the impact and the output of this funding initiative can not be determined, in is unclear whether the entrepreneurs were able to expand their business or not.
“For example, by hiring more workers, expanding their premises, penetrating international markets or being able to increase their market share or capital and eventually becoming large corporations.”
On Aug 3, Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick announced an additional allocation of RM200 million to fund informal and micro entrepreneurs under Tekun Nasional.
He said the additional sum is meant to assist more entrepreneurs and will bring this year’s total allocation to RM800 million.
Commenting on current announcement by Ewon, Ahmed Razman said it is a good thing that the government has decided to increase the fund allocated to help the informal and micro entrepreneurs with business financing.
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said the additional allocation to Tekun Nasional is indeed a timely move that can promote enterpreneurial activities.
Mohd Afzanizam said as in this current economic landscape, businesses would need to be cognisant on the potential challenges that may affect their sales and cost management and ultimately their profitability.
“This may require certain upgrades to business facilities in order to improve their sales and productivity. For instance, investment in smart devices would require a sizeable investment from the micro entrepreneurs.
“Not to mention the relevant training they would need to attend in order to acquire better skils in business like how would they market their products and services online. These are capacity building which can be a costly affair for the micro businesses.”
Online trader Maziah Mahmud, 34, one of the beneficiaries of Tekun Nasional, said she is a small trader who does not qualify for a bank loan for her online business.
“So, this initiative is good for the people because this is a loan scheme that will be repaid to the government. My first loan of as little as RM5,000 was used to buy business equipment such as an ingredient grinder to make fish sauce and a freezer to store products.
Meanwhile, another person who just received Tekun Nasional funding, Syed Mohd Nasry Syed Sabry, 25, said the funds were very helpful, asit allowed him to expand his business. He sells toys such as model kits and action figures online and at a physical shop that he owns.
“This additional funding is good because it will help many other businesses that need funds as well.”
In Perak, state Women, Family, Social Welfare, Cooperatives and Entrepreneur Development Committee chairman Salbiah Mohamed said the additional funding of RM200 million is very helpful for informal and micro entrepreneurs in the state.
She said about RM29.8 million had been channelled to 1,296 borrowers in the state under the Tekun Nasional scheme in the first six months of this year.
“The amount is part of the almost RM50 million that has been allocated this year.
“Certainly the addition to this fund can help entrepreneurs acquire the initial capital needed to start their business.”
— Bernama
