Analyzing the Factors that Influence the Entrepreneur Business Performance of Tourism Destination of Kuala Terengganu City Centre, Malaysia

  • Muhammad Abi Sofian Abdul HALIM University Malaysia Terengganu, Malaysia
  • Nurul Farahiyah AWANG University Malaysia Terengganu, Malaysia
  • Khatijah OMARm University Malaysia Terengganu, Malaysia
  • Jumadil SAPUTRA University Malaysia Terengganu, Malaysia
  • Siti Nor Adawiyah Azzahra KAMARUDDIN University Malaysia Terengganu, Malaysia
  • Hazman SAMSUDIN University Malaysia Terengganu, Malaysia


Tourism in Terengganu deals with attractions, events, and facilities of special interest to tourists, such as Kuala Terengganu City Centre (KTCC). KTCC is a collaboration project between the Terengganu state government and the East-Cost Economic Region Development (ECERD) agency. This project purposely attracts potential foreign investors and upgrades the community's economy and social well-being in rural dan sub-urban areas in Kuala Terengganu. Therefore, this study analyzes the factors that influence the business performance among Malay micro-entrepreneurs in rural and sub-urban areas of Kuala Terengganu. The study utilized four factors, including entrepreneurial competency, financial literacy, innovation, and technology. In this survey research, non-probability has been chosen by using the purposive sampling methods. The data were collected from Malay micro-entrepreneurs operating their business, including the North and South areas of KTCC. The results showed that entrepreneurial competency and technology factors were significantly affected business performance. Meanwhile, the financial literacy and innovation factors were not significantly affected business performance among Malay micro-entrepreneurs. In general, this study's findings indicated that most Malay entrepreneurs are not concerned about the importance of managing their finance and creating innovative products in the competitive areas. Also, KTCC is a project that can benefit those Malay micro-entrepreneurs who wisely grab the opportunities. Therefore, they need to consider other entrepreneurial factors that can further develop their business performance without relying on the government and other stakeholders.



[1] Ahmad, N. H., Halim, H. A. and Zainal, S.R.M. 2010. Is Entrepreneurial Competency the Silver Bullet for SME Success in a Developing Nation. International Business Management, 4 (2): 67–75.
[2] Albiol-Sanchez, J., and van Stel, A. 2016. Investigating the Impact of Small versus Large Firms on Economic Performance of Countries and Industries. In Contemporary Entrepreneurship, 51–73. Springer.
[3] Apulu, I., and Latham, A. 2011. Drivers for Information and Communication Technology Adoption: A Case Study of Nigerian Small and Medium Sized Enterprises. International Journal of Business and Management, 6 (5): 51.
[4] Arinaitwe, S.K. 2006. Factors Constraining the Growth and Survival of Small Scale Businesses. A Developing Countries Analysis. Journal of American Academy of Business, 8 (2): 167–78.
[5] Arpidi, M.A., Mamat, Saat Ishak, and Ariffin Khairi. 2014. Impak Dasar Ekonomi Baru Ke Atas Peningkatan Ekonomi Bumiputera Selepas Tragedi 13 Mei 1969/Mohamad Asrol Arpidi Bin Mamat, Ishak Saat & Khairi Ariffin. PERSPEKTIF Jurnal Sains Sosial Dan Kemanusiaan, 6 (3): 138–51.
[6] Bikse, V., Lusena-Ezera, I. and Rivza, B. 2016. Performance Trends in Youth Entrepreneur’s Capacity Prerequisite for the Entrepreneurship Development of Latvia. Polish Journal of Management Studies, 14 (1): 40–50.
[7] Bogomolova, L. L. 2016. Development of Government Support for Import Substitution in Small and Medium Enterprises of Northern Regions. Polish Journal of Management Studies, 13.
[8] Camison, C., and Lopez, A. V. 2010. An Examination of the Relationship between Manufacturing Flexibility and Firm Performance: The Mediating Role of Innovation. International Journal of Operations & Production Management.
[9] Enloe, C.H. 1979. Malays and Modernization: A Sociological Interpretation. By Tham Seong Chee. Singapore: University of Singapore Press, 1977. Xiii, 319 Pp. Bibliography, Index. Npl. The Journal of Asian Studies, 38 (3): 629–30.
[10] Hair, J.F., Black, W.C., Babin, B.J. and Anderson. R.E. 2014. Multivariate Data Analysis: Global Edition (7th Editio). Pearson Education Limited. DOI:
[11] Halim, M.A.S.A., et al. 2021. Examining the Relationship between Entrepreneurship Development Programs and Business Performance among Entrepreneurs in Tioman Island, Malaysia. Journal of Environmental Management & Tourism,3 (51): 846–54.
[12] Hasan, I. et al. 2020. Investigating the Supply Chain Management of Accessibility Members of Micro and Small Enterprises (MSEs) on Financing Capitals in Aceh Province, Indonesia. Int. J Sup. Chain. Mgt, 9(1): 952.
[13] Hidayati, A. and Satmaka, N. I. 2018. Nurturing Entrepreneurship: The Role of Entrepreneurship Education in Student Readiness to Start New Venture. Polish Journal of Management Studies, 18 (1): 121–32.
[14] Hilgert, J., Hirsch, K., Bertram, T. and Hiller, M. 2003. Emergency Path Planning for Autonomous Vehicles Using Elastic Band Theory. In Proceedings 2003 IEEE/ASME International Conference on Advanced Intelligent Mechatronics (AIM 2003), 2:1390–95.
[15] Kabir, M., Hazril I. I., and Shah, K.A.M. 2017. Entrepreneurial Competency as Determinant for Success of Female Entrepreneurs in Nigeria. Indonesian Journal of Business and Entrepreneurship (IJBE), 3 (2): 143.
[16] Kamunge, M.S., Njeru, A. and Tirimba, O.I. 2014. Factors Affecting the Performance of Small and Micro Enterprises in Limuru Town Market of Kiambu County, Kenya. International Journal of Scientific and Research Publications, 4 (12): 1–20.
[17] Kot, S., and Imran, M. 2019. The Moderating Role Of Environmental Disaster In Relation To Microfinance’s Non-Financial Services And Women’s Micro-Enterprise Sustainability. Journal of Security & Sustainability Issues, 8 (3).
[18] Kulej-Dudek, E. 2013. Evaluation of Knowledge Management in Small and Medium-Sized Enterprises. Polish Journal of Management Studies, 8: 168–74.
[19] Laudon, K.C, and Laudon, J.P. 2015. Management Information System. Pearson Education India.
[20] Lopa, N.Z., and Bose, T.K. 2014. Relationship between Entrepreneurial Competencies of SME Owners/Managers and Firm Performance: A Study on Manufacturing SMEs in Khulna City. Journal of Entrepreneurship and Management, 3 (3): 1–12.
[21] Lusardi, A. and Mitchell, O.S. 2007. Baby Boomer Retirement Security: The Roles of Planning, Financial Literacy, and Housing Wealth. Journal of Monetary Economics, 54 (1): 205–24.
[22] Lusardi, A., Mitchell, O.S. and Curto, V. 2010. Financial Literacy among the Young. Journal of Consumer Affairs, 44 (2): 358–80.
[23] Melville, N., Kraemer, K. and Gurbaxani, V. 2004. Information Technology and Organizational Performance: An Integrative Model of IT Business Value. MIS Quarterly, 283–322.
[24] Meyer, N., Meyer, D. F. and Molefe, K.N. 2016. Barriers to Small Informal Business Development and Entrepreneurship: The Case of the Emfuleni Region. Polish Journal of Management Studies 13.
[25] Minai, M.S., Uddin, M.M. and Yusnidah I. 2014. The Pitfalls in Entrepreneurship and Small Business Research: A Holistic View. Asian Social Science, 10 (6): 533–44.
[26] Mitchelmore, S., and Rowley, J. 2010. Entrepreneurial Competencies: A Literature Review and Development Agenda. International Journal of Entrepreneurial Behavior & Research.
[27] Moore, J.H. 2003. The Ubiquitous Nature of Epistasis in Determining Susceptibility to Common Human Diseases. Human Heredity, 56 (1–3): 73–82.
[28] Muhamad, S. et al. 2018. The Role of Human Capital and Innovation Capacity on Economic Growth In. Jurnal Ekonomi Malaysia, 52 (1): 257–68. DOI:
[29] Okręglicka, M., Mynarzová, M. and Kana, R. 2015. Business Process Maturity in Small and Medium-Sized Enterprises. Polish Journal of Management Studies 12.
[30] Piprek, G, Dlamini, P. and Coetzee, G. 2004. Financial Literacy Scoping Study & Strategy Project. FinMark Trust. March.
[31] Radzi, K.M., Nor, M. N. M. and Suhana Mohezar Ali. 2017. The Impact of Internal Factors on Small Business Success: A Case of Small Enterprises under the FELDA Scheme. Asian Academy of Management Journal, 22 (1): 27.
[32] Ramli, Ainon., and Maslina. Taib. 2017. Malaysian Malay Micro Businesses: Success Factors in Langkawi Island. Sci.Int.(Lahore), 29 (6): 1191–98.
[33] Rosli, M M., and Sidek, S. 2013. The Impact of Innovation on the Performance of Small and Medium Manufacturing Enterprises:: Evidence from Malaysia. Journal of Innovation Management in Small & Medium Enterprises, 2013: 1.
[34] Ruey-Jer, J., Sinkovics, R.R. and Daekwan K. 2008. Information Technology and Organizational Performance within International Business to Business Relationships: A Review and an Integrated Conceptual Framework. International Marketing Review, 25 (5): 563–83.
[35] Shamsudin, R., and Vincent, C.J. 2020. Agricultural and Food Industries in Malaysia. Advances in Agricultural and Food Research Journal 1 (1).
[36] Spinelli, S. 2011. Business Plans That Work: A Guide for Small Business. McGraw-Hill.
[37] Sulastriyono, J. S. 2020. A Study of Supply Chain Management Aspects of Village Owned Enterprises in Indonesia. Int. J Sup. Chain. Mgt, 9 (3): 1221.
[38] Tehseen, S., and Ramayah, T. 2015. Entrepreneurial Competencies and SMEs Business Success: The Contingent Role of External Integration. Mediterranean Journal of Social Sciences, 6 (1): 50.
[39] Widiartanto, W. et al. 2020. A Study of Intellectual Capital and Its Supply Chain Strategy for Business Performance in Small Medium Enterprise (SMEs). International Journal of Supply Chain Management, 9 (4): 267–75.
[40] Yusuff, Y.Z., Bakar, A.A. and Shuhymee Ahmad. 2016. Microfinance and Women Entrepreneurs’ Business Performance: The Mediating Role of Social Capital. Journal for Studies in Management and Planning (JSMaP), 2 (6): 82–96.
[41] Zulkifli, M., et al. 2020. Attracting Inward Foreign Direct Investment: An Analysis on E-Government Practices and Ease of Doing Business among Countries in the ASEAN Region. Contemporary Economics, 14 (4): 532–42.
[42] SMEs Corp Malaysia. 2017. Micro Enterprises. Available at:
How to Cite
HALIM, Muhammad Abi Sofian Abdul et al. Analyzing the Factors that Influence the Entrepreneur Business Performance of Tourism Destination of Kuala Terengganu City Centre, Malaysia. Journal of Environmental Management and Tourism, [S.l.], v. 13, n. 2, p. 403 - 413, mar. 2022. ISSN 2068-7729. Available at: <>. Date accessed: 18 may 2022. doi: