INDIGENOUS ENTREPRENEURSHIP ENTREPRENEURIAL INTENTIONS OF DAYAKYOUTH IN SARAWAK MALAYSIA
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Ollince Anak Tateh
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Corporate Master in Business Administration 2013
Pusat Khidmat Maklumat Akadcl1ik UNJVERSm MALAYSIA SARAWAK
Indigenous Entrepreneurship Entrepreneurial Intentions ofDayak Youth in Sarawak Malaysia
PKHIOMAT MAKLUMAT AKAOEMIK
1IIIIIIIIIrliiilllllllili 1000246888
By
Ollince Anak Tate~ 11031918
A Research Paper Submitted in Partial Fulfillment of the Requirement for the Degree of
Corporate Master in Business Administration
Faculty of Economics and Business UNIVERSITY MALAYSIA SARAWAI
(2013) - - bull ~ ~~
~
I I
APPROVAL PAGE
I certified that I have supervised and read this study and in my opinion it conforms to
acceptable standards of scholarly presentation and is fully adequate in scope and quality
as a research paper for the degree of Corporate Master in Business Administration
Dr Hamrila Abdul Latip Supervisor
This research paper was submitted to the Faculty of Economics and Business UNlMAS
and is accepted as partial fulfillment of the requirements for the degree of Corporate
Master in Business Administration
~I bull bull l bull I
11 Dr Mohammad Affendy Arip Dean Faculty of Economics and Business UNIMAS
I bull
ii
I
STATEMENT OF ORIGINALITY
The work described in this Research Paper entitled
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak Youth in Sarawak Malaysia
is to the best of the authors knowledge that of the author except
where due reference is made
6th August 2013 Date Ollince Anak Tateh
11031918 shy
- _
III
F
ABSTRACT
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak
Youth in Sarawak Malaysia
By
OLLINCE ANAK TATER
([hiS study involves two aspects that have major influence to entrepreneurship as
commonly described in literature the personality traits and social variables The interest
of study was on Dayak group in Sarawak comprises of Iban Bidayuh and Orang Ulu
(Bisayah Kayan Kenyah Kelabit and Berawan The present study finds that despite
increasing attention on indigenous entrepreneurship there remains a lack of
multidimensional research on entrepreneurial intentions of non-Malay indigenous
communities in Malaysia With the use of quantitative methods for data collection and
analysis the impacts of personality traits and social variables of the respondents on
development of their entrepreneurial intentions were investigated The findings showed
that the respondents entrepreneurial intentions could be predicted using both their
personality traits (innovativeness) and social variables (knowledge and experience
family upbringing)
Keywords Entrepreneurial Intentions Personality Traits Social Variables Indigenous Dayak
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IV
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
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ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
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Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
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Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
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CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
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t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
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7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
Pusat Khidmat Maklumat Akadcl1ik UNJVERSm MALAYSIA SARAWAK
Indigenous Entrepreneurship Entrepreneurial Intentions ofDayak Youth in Sarawak Malaysia
PKHIOMAT MAKLUMAT AKAOEMIK
1IIIIIIIIIrliiilllllllili 1000246888
By
Ollince Anak Tate~ 11031918
A Research Paper Submitted in Partial Fulfillment of the Requirement for the Degree of
Corporate Master in Business Administration
Faculty of Economics and Business UNIVERSITY MALAYSIA SARAWAI
(2013) - - bull ~ ~~
~
I I
APPROVAL PAGE
I certified that I have supervised and read this study and in my opinion it conforms to
acceptable standards of scholarly presentation and is fully adequate in scope and quality
as a research paper for the degree of Corporate Master in Business Administration
Dr Hamrila Abdul Latip Supervisor
This research paper was submitted to the Faculty of Economics and Business UNlMAS
and is accepted as partial fulfillment of the requirements for the degree of Corporate
Master in Business Administration
~I bull bull l bull I
11 Dr Mohammad Affendy Arip Dean Faculty of Economics and Business UNIMAS
I bull
ii
I
STATEMENT OF ORIGINALITY
The work described in this Research Paper entitled
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak Youth in Sarawak Malaysia
is to the best of the authors knowledge that of the author except
where due reference is made
6th August 2013 Date Ollince Anak Tateh
11031918 shy
- _
III
F
ABSTRACT
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak
Youth in Sarawak Malaysia
By
OLLINCE ANAK TATER
([hiS study involves two aspects that have major influence to entrepreneurship as
commonly described in literature the personality traits and social variables The interest
of study was on Dayak group in Sarawak comprises of Iban Bidayuh and Orang Ulu
(Bisayah Kayan Kenyah Kelabit and Berawan The present study finds that despite
increasing attention on indigenous entrepreneurship there remains a lack of
multidimensional research on entrepreneurial intentions of non-Malay indigenous
communities in Malaysia With the use of quantitative methods for data collection and
analysis the impacts of personality traits and social variables of the respondents on
development of their entrepreneurial intentions were investigated The findings showed
that the respondents entrepreneurial intentions could be predicted using both their
personality traits (innovativeness) and social variables (knowledge and experience
family upbringing)
Keywords Entrepreneurial Intentions Personality Traits Social Variables Indigenous Dayak
bull t I
bull i
~
xxx
J I bull I
~
IV
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
I
v
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
APPROVAL PAGE
I certified that I have supervised and read this study and in my opinion it conforms to
acceptable standards of scholarly presentation and is fully adequate in scope and quality
as a research paper for the degree of Corporate Master in Business Administration
Dr Hamrila Abdul Latip Supervisor
This research paper was submitted to the Faculty of Economics and Business UNlMAS
and is accepted as partial fulfillment of the requirements for the degree of Corporate
Master in Business Administration
~I bull bull l bull I
11 Dr Mohammad Affendy Arip Dean Faculty of Economics and Business UNIMAS
I bull
ii
I
STATEMENT OF ORIGINALITY
The work described in this Research Paper entitled
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak Youth in Sarawak Malaysia
is to the best of the authors knowledge that of the author except
where due reference is made
6th August 2013 Date Ollince Anak Tateh
11031918 shy
- _
III
F
ABSTRACT
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak
Youth in Sarawak Malaysia
By
OLLINCE ANAK TATER
([hiS study involves two aspects that have major influence to entrepreneurship as
commonly described in literature the personality traits and social variables The interest
of study was on Dayak group in Sarawak comprises of Iban Bidayuh and Orang Ulu
(Bisayah Kayan Kenyah Kelabit and Berawan The present study finds that despite
increasing attention on indigenous entrepreneurship there remains a lack of
multidimensional research on entrepreneurial intentions of non-Malay indigenous
communities in Malaysia With the use of quantitative methods for data collection and
analysis the impacts of personality traits and social variables of the respondents on
development of their entrepreneurial intentions were investigated The findings showed
that the respondents entrepreneurial intentions could be predicted using both their
personality traits (innovativeness) and social variables (knowledge and experience
family upbringing)
Keywords Entrepreneurial Intentions Personality Traits Social Variables Indigenous Dayak
bull t I
bull i
~
xxx
J I bull I
~
IV
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
I
v
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
STATEMENT OF ORIGINALITY
The work described in this Research Paper entitled
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak Youth in Sarawak Malaysia
is to the best of the authors knowledge that of the author except
where due reference is made
6th August 2013 Date Ollince Anak Tateh
11031918 shy
- _
III
F
ABSTRACT
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak
Youth in Sarawak Malaysia
By
OLLINCE ANAK TATER
([hiS study involves two aspects that have major influence to entrepreneurship as
commonly described in literature the personality traits and social variables The interest
of study was on Dayak group in Sarawak comprises of Iban Bidayuh and Orang Ulu
(Bisayah Kayan Kenyah Kelabit and Berawan The present study finds that despite
increasing attention on indigenous entrepreneurship there remains a lack of
multidimensional research on entrepreneurial intentions of non-Malay indigenous
communities in Malaysia With the use of quantitative methods for data collection and
analysis the impacts of personality traits and social variables of the respondents on
development of their entrepreneurial intentions were investigated The findings showed
that the respondents entrepreneurial intentions could be predicted using both their
personality traits (innovativeness) and social variables (knowledge and experience
family upbringing)
Keywords Entrepreneurial Intentions Personality Traits Social Variables Indigenous Dayak
bull t I
bull i
~
xxx
J I bull I
~
IV
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
I
v
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
ABSTRACT
Indigenous Entrepreneurship Entrepreneurial Intentions of Dayak
Youth in Sarawak Malaysia
By
OLLINCE ANAK TATER
([hiS study involves two aspects that have major influence to entrepreneurship as
commonly described in literature the personality traits and social variables The interest
of study was on Dayak group in Sarawak comprises of Iban Bidayuh and Orang Ulu
(Bisayah Kayan Kenyah Kelabit and Berawan The present study finds that despite
increasing attention on indigenous entrepreneurship there remains a lack of
multidimensional research on entrepreneurial intentions of non-Malay indigenous
communities in Malaysia With the use of quantitative methods for data collection and
analysis the impacts of personality traits and social variables of the respondents on
development of their entrepreneurial intentions were investigated The findings showed
that the respondents entrepreneurial intentions could be predicted using both their
personality traits (innovativeness) and social variables (knowledge and experience
family upbringing)
Keywords Entrepreneurial Intentions Personality Traits Social Variables Indigenous Dayak
bull t I
bull i
~
xxx
J I bull I
~
IV
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
I
v
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
ABSTRAK
Keusahawanan Peribumi Niat Keusahawanan di Kalangan Delia Dayak di Sarawak Malaysia
Oleh
OLLINCE ANAK rATEH
Kajian ini melibatkan dua aspek yang mempengaruhi keusahawanan iaitu sifat
keperibadian dan unsur-unsur sosial Kajian ini adalah cenderung kepada kumpulan
kaum Dayak di Sarawak yang terdiri daripada kaum ban Bidayuh dan Orang Ulu
Bisaya Kayan Kenyah Kelabit dan Berawan Kajian ini mendapati meskipun
perhatian terhadap bidang keusahawanan oleh kaum peribumi semakin meningkat
namun masih terdapat kekurangan kajian tentang niat keusahawanan dalam kalangan
kaum peribumi bukan Melayu di Malaysia yang meliputi pelbagai dimensi Dengan
menggunakan kaedah kuantitatif bagi proses pengumpulan data dan analisis kajian ini
mengkaji impak sifat keperibadian serta unsur-unsur sosial respondens terhadap
keinginan mereka untuk menceburi bidang keusahawanan Hasil kajian ini menunjukkan
bahawa niat keusahawanan para respondens boleh dijangka berdasarkan kedua-dua
aspek yang dikaji yakni sifat keperibadian (inovatif) dan unsur-unsur sosial
(pengetahuan serta pengalaman dan latarbelakang keluarga)
Kata kunci Niat Keusahawanan Sifat Keperibadian Perubahan Sosial Peribumi fir bull bull t-_~- _ bull ~ ~
Dayak ~ ~I bull bull middot
I
v
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
ACKNOWLEDGEMENT
I would like to express my gratitude to all who supported and assisted me during this
CMBA journey especially my research supervisor Dr Hamrila A Latip for her guidance
my beloved family for their continuous supports and encouragement my colleagues for
their understanding which make it possible for me to finish this course and all my
CMBA friends who share an enthusiasm for learning and motivation
Special thank is also made to the Centre of Graduate Study (CGS) ofUniversity Malaysia
Sarawak (UNlMAS) for providing administration and assistance during my five
semesters with CMBA Sibu
I would also like to acknowledge the 161 respondents who completed my research
questionnaire and specific persons who helped me to reach the respondents from
different places (Kuching Betong Sibu Kanowit Bintulu and Miri) especially ZeJri
Rajaie Frederick SUI Baun Inu Puun Nicholas Guwang Priscelia Riip and Anniza Jack
I I bullbull I middotf bull [
VI
bull I
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
Pusat Khidmat Maklumat Akademik UNIVERSm MALAYSIA SARAWAK
TABLE OF CONTENTS
Page
LIST OF TABLES IlX
LIST OF FIGURES x
CHAPTER 1 INTRODUCTION
10 Introduction 1
11 Theoretical Background 3
12 Significance of Study 3 middot
13 Research Objectives 5
14 Scope of Study 6
CHAPTER 2 LITERATURE REVIEW
20 Introduction 8
21 Malaysian Poverty Eradication Plan 8
22 The Dayak Natives in Sarawak 10
23 Entrepreneurship Concept and Variables 231 Content Variables Personality Traits 14
Risk Taking Propensity 15
Tolerance ofAmbiguity 17
Innovativeness 18
232 Process Variables Social Variables 19
Family Upbringing 20
Knowledge and Experience 21shy
24 Hypothesized Relationship between Vrui~k1sect ~~ 23 ~l bull bull I
CHAPTER 3 METHODOLOGY 30 Introduction 25
31 Research Design
311 Sample Size 26 I
312 Respondents t 26
VB
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
313 Research Instruments 28
32 Statistical Methods
321 Data Transformation 32
322 Descriptive Analysis 32
323 Principal Component Analysis 33
324 Pearson Correlation Analysis 34
325 Multiple Regression Analysis 34
CHAPTER 4 EMPIRICAL RESULTS
40 Introduction 36
41 Descriptive Statistic 36 42 Validity and Reliability 38
43 Correlation Matrix 43
44 MUltiple Regression Analysis 47
441 Multiple Regression Model 49
CHAPTER 5 DISCUSSION AND CONCLUSION
50 Introduction 55
51 Personality Traits and Social Variables 55
52 Limitations and Implications of Study 57
53 Conclusion 59
REFERENCES 61
APPENDIX I
APPENDIX II
I bull I
Vlll
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
LIST OF TABLES
Page
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group 11 Table 31 Sample Characteristics 27
Table 32 Composite Variables of Entrepreneurial Intention 29
Table 33 Survey Items for Personality Traits 30
Table 34 Survey Items for Social Variables 31
Table 35 Assumptions for Multiple Regression Model 35
Table 4 1 Frequency of Dayak Youths Entrepreneurial Intentions 37
Table 42 Summary of Familys Background and Awareness on 37
Entrepreneurship
Table 43 Rotated Component Matrix of Personality Traits Items 40
Table 44 Item-Total Statistics of Factor 2 (Innovativeness) 41
Table 45 Rotated Component Matrix of Social Variables Items 42
Table 46 Pearson Correlation Matrix 43
Table 47 Model Summary of Personality Traits as Predictors 48
Table 48 Regression Coefficients ofPersonality Traits 48
Table 49 Model Summary of Social Variables as Predictors 48
Table 410 Regression Coefficients of Social Variables 49
Table 411 Summary ofAll Possible Models 51
Table 412 Summary of Model Y X2345 52
Table 413 Coefficients of Model Y X2bull345 52
Table 414 Summary of Model Y X245 53
Table 415 Coefficient of ModelY ~4bullbull _ ~bull~ 53 f ~i middotd
bull II _ bull
If I middotmiddot
IX
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
-
I
LIST OF FIGURES
Page
Figure 21 The Theory of Reasoned Action 24
Figure 22 Model of Intentions 24
Figure 41 Education Majoring 38
Tmiddot middot ~i bullbull bull t
f I I
x
lt -- ~
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
CHAPTERl
INTRODUCTION
10 Introduction
This thesis explores the potential of indigenous youth to involve in entrepreneurship by
investigating factors that contribute to their entrepreneurial intentions Within the context of a
quantitative design the present thesis explores two type~ of individuals assets personality
traits and social variables as predictors of entrepreneurial intentions possessed by Malaysian
indigenous communities grouped as Dayak
Entrepreneurship activities help develops a countrys economy and social wellness of one
particular society (Ahmad el al 2006) Despite an increasing interest in indigenous
entrepreneurship and its contribution to the living standard of the society (Doris el a 2012
Jaafar el a 2009) relatively little empirical evidence has been reported on other indigenous
communities in Malaysia apart from the Malay This motivates the current researcher to
explore the entrepreneurs potentials specifically in term of entrepreneurial intention among
Dayak native in Sarawak The study is concentrated on two possible aspects that could
influence individuals decision to start a new business Component variables on personality
traits and the communities social variables were taken into account
shy
Although massive entrepreneurship literatUre have d~tmmre8 middot~ue~es of personality bull I ~ i fo
traits (Deamer amp Earle 2004 Schmitt-Rodermund 2004 Gurol amp Atsan 2006 Pillis amp ~
Reardon 2007) and social variables (Morrison 2000 Schmitt-Rodermund 2004) on
entrepreneurship potential the present thesis explores these two factors within the context of
0 II I bull
1
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
entrepreneurship traits prior knowledge and as family upbringing in order to identify
entrepreneurial intentions among Dayak community
Furthennore Dayak youth are chosen for the present study as they are known as a countrys next generation ~ economic and social player It is a period when young people gradually
come to be recognized and to recognize themselves as adults It can also be a period of great
energy enthusiasm and creativity (Fussell 2006) Thus t is extremely essential to make sure
that they are well prepared for their futures as workers entrepreneurs parents citizens and
community leaders and to the course of poverty reduction and growth They begin to interact
independently with the broader community and establish their identity as individuals At this
stage they nonnally stand at one lifes turning points one at which they think about careers
(pruett et a 2009) and how to be successful
This becomes the underlying principle for the current researcher in choosing youth as her
respondents As younger generations are exposed to substantial economic political changes
and popular cultural trends measured by technological advances it is no doubt that they are
more exposed to foreign trends and ideas and more able to share their ideas (Hofstede
2(01) At the end of the Chapter 5 this thesis is expected to answer two research questions as
follow
1) What is the entrepreneurial intention level among Dayak youth in Sarawak
2) What are the factors that affect partfcipaiion Ofl)(ljialt you~~trPIi~WJ1rship
shy
t 2
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
11 Theoretical Background
Factors contributing to entrepreneurial intention have gained the attention of a number of
researchers (Segal el aI 2005 Pruett el aI 2009 Nabi amp Holden 2008) A number of researchers havt) debated the theoretical relevance of personality traits (Llewellyn amp Wilson
2003 Deamer amp Earle 2004 Shahhosseini el aI 2011) and influence of social variables
(Orhan amp Scott 2001 Roxas el aI 2008 Kirk~d 2009) to discover indigenous
entrepreneurship potential
The present study explores the entrepreneurship potential of unique native group in Sarawak
and examines the factors responsible for their participations in business sectors through
content and process variables Content variables focus on personality traits such as risk taking
propensity tolerance for ambiguity and innovativeness (Stewart amp Roth 2001 Wang amp
Zang 2005 Nicolaidis amp Katsaros 2011) while process variables consider knowledge and
experience attained as well as family upbringing which include family support financial
status and awareness (Morisson 2000 Schmitt-Rodermund 2004) The following section
provides the rationale of the present thesis identifying three significant reasons for
undertaking this research
12 Significance of Study t--1tbull ~bullbull bull
t
There are three reasons for investigating rel~t~onship J~etween personality traits social
variables and entrepreneurial intentions These reasons consider the urgent need to
empirically review the relationship between both indi~iduals aspects (personality traits and
social variables) and the intention of youth to involve in ~ntre~repeu~hip fh~ components of
3
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
personality traits for the present study are represented by three commonly described
entrepreneurship traits risk taking propensity innovativeness and tolerance of ambiguity
(Gurol amp Atsan 2006 Shahhosseini et aI 2011 Yildiz 2012) whereas the components of
social variables (Wyckham amp Wed ley 1990 Morrison 2000 Schmitt-Rodermund 2004 Bagheri amp PiHte 2011) are represented by attained knowledge and training or working
experiences as well as family upbringing
First research done on indigenous entrepreneurship in Malaysia (Jaafar et al 2009 Suhaila
amp Mohammad 2011 Fakrul amp Norhayate 2011 Doris et al 2012) targeted on specific
community mainly in West Malaysia whom are reported as more economically advanced
compared to other Bumiputeras in the country after the NEP and NDP eras (Government of
Malaysia 2005) By way of contrast the present study investigates the entrepreneurship
potential of indigenous communities in East Malaysia in particular Sarawak where higher
poverty rate is recorded Therefore in order to discover the potential of entrepreneurship
within Dayak community in Sarawak this project initiates the exploration of Dayaks
features and culture via their entrepreneurship traits and social setting as predictors to their
entrepreneurial intentions
Second researchers (Schumpeter 1934 Tamvada 2009 Marr amp Reynard 2010 Goel amp
Rishi 2012) also stressed out on the important role of entrepreneurship in economic growth
and poverty alleviation Tamvada (2009) afgUedll18tbttngmiddot ~f~emp~~yed improves a
persons welfare besides creates job opportunity as a povero-reduction tool At the same
time Marr and Reynard (2010) stated that the economic growth and transformation of four
rapidly emerging major economies (REMEs) countries they did survey on - Brazil China
India and Korea - are due to private enterprise and entrepreneurial acfiyities There is no bull [ Ii
4
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
Pusat Khidmat Maklumat Akademik UNIVERSID MALAYSIA SARAWAK
doubt that the Malaysian Government has set different types of policies to foster indigenous
business participation Thus this research provides a better understanding of the Dayak
description for policy makers NGOs and business support organizations particularly in
planning or utilizing government-support entrepreneurship programmes
Finally this study enables the readers to understand the level of Dayaks awareness towards
the concept of entrepreneurship and its benefits to the community group which still holds a I
gap in the literature Knowledge and skills are vital to enhance persons ability in order to
meet their basic needs in life and enable them to influence their life direction in almost every
situation By obtaining business-related education from primary level awareness on benefits
of entrepreneurship could be implanted from early age besides developing entrepreneurial
skills creativity and intention as well (Schmitt-Rodermund 2003 Pittaway amp Cope 2007
Alpkan et aJ 2010)
Otherwise efforts taken by the Sarawak Gdvernment to develop entrepreneurship skills
among Dayak could possibly become a tough mission as it is fundamentally not just
involving education and trainings but also changing mindset and attitude towards becoming
entrepreneurial Thus a key purpose of the present thesis is to gain an in depth understanding
of the Dayak youths entrepreneurship potential in strengthening entrepreneurship in
Malaysia
13 Researcb Objectives bull t
bull 11 ~ _ bull
The objectives of this study are twofold First the current observer is investigating the
potential of entrepreneurship among Dayak youth in Sarawak based on their imention to start
a business Second the potential of entrepreneurshi~ is also irlv~stlg~ted ~mpirically via the
5
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
relationship analysis between youth entrepreneurial intention and the components of their
personality traits (entrepreneurship traits) and social variables (knowledge and experience
family upbringing) that could either trigger or hinder the intentions of becoming
entrepreneurial Thus the present study aims 1 to identi~ the relationship between the factors of personality traits and
entrepreneurial intention (EI) ofDayak youth
2 to identify the relationship between the factors of ocial variables and entrepreneurial
intention (EI) ofDayak youth
3 to investigate the extent to which personality traits and social variables that best
predicted entrepreneurial intention (EI) of Dayak youth
14 Scope of Study
This section outlines the structures of this thesis Chapter 2 provides an extensive review of
the relevant literature leading to the development of a theoretical framework of individuals
assets An analysis individuals assets as sources of entrepreneurial intention is presented
with a discussion of variables comprising a proposed hypothesized theory involving
individuals personality traits and social variables This followed by the self-construct
theoretical framework of the study
Chapter 3 presents the research method and design apP1ietltfutgtl1gh~ ~~y Jllstification
is provided for the application of quantitative measures fol~wed by a description of
participants and data collection procedures Data computing and transformation processes are
described follow by the validity and reliability of research instruments and statistical
procedures to test hypotheses
II middot bull
6
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
The Chapter 4 concludes empirical findings and analysis from distribution of questionnaires
to 161 respondents around Sarawak Results arising from Principal Component Analysis
(PCA) on underlying variables are presented after summarization of data via descriptive
analysis This chapter ends with a correlation analyses and discussion on relationship exists between the depeJildent and independent variables Finally Chapter 5 concludes together the
key findings from all analyses revealing the contribution ofthis research
shy
-
1 tmiddot I I
7
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
CHAPTER 2
LITERATURE REVIEW
20 Introduction
This section beginsectlwith a review on the Malaysian economic development with intervention
of the Government whose intention is to improve the quality of life for the Bumiputera
people This is followed by an introduction of the Dayak ~oup which makes up the majority
of native communities in Sarawak Malaysia has been successful in transforming itself into an
upper-middle income economy and aims to attain high-income status by 2020 through its
r New Economic Model launched in 2010 Historically in the 1970s Malaysia was merely a
producer of raw materials such as tin and rubber From then onwards its economic activities
began to diversify and the Malaysian economy grew on an average of 73 between 1985
and 1998 despite the Asian financial crisis from 1997-1998 The economic growth rates were
maintained until 2008 accompanied by a drastic reduction in poverty which decreased from
228 in 1990 to 57 in 2004 (Malaysia 2006)
21 The Malaysian Poverty Eradication Plan
Government intervention via the New Economic Policy (1971-1990) National Development
Policy (1991-2000) and National Vision Policy (2001-2010) was one of the Malaysian
governments major efforts in alleviating poverty 1he-~ai~o erA4~~te poverty
regardless of race and restructure society to el iminate the identifi~tion of race with eco~omic
function Its main purpose was to reduce interethnic resentment due to socioeconomic
disparities particularly between the Chinese and Malay the largest indigenous ethnic group
in Malaysia lomo 2004) As a result of restructuring society which involved increasing t I ill t 1
bull bull I
8
- --
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
Bumiputera participation in commerce and industry Bumiputera share of corporate
ownership rose from 24 in 1970 to 193 in 1990 (World Bank 2013)
As the NEP and the NDP eras have ended the Federal Government has recently introduced two major develolment programmes Economic Transformation Programme (ETP) and
Government Transformation Programme (GTP) ETP is focused on twelve National Key
Economic Areas (NKEAs) while GTP covers six Natio~al Key Results Areas (NKRAs)
NKEAs are complemented by six Strategic Reform Initiatives (SRIs) which include
Narrowing Disparity SRI in an attempt to uplift low-income households and develop more
~ Bumiputera SMEs Through this programme more Bumiputera SMEs are expected to be
created and upgraded by accelerating their growth and positioning them to be more
competitive in the open market on their own Furthermore NKRAs under the GTP were
identified to improve socioeconomic growth of Malaysians which include raising living
standards of low-income households improving student outcomes and improving rural
development (Malaysia Performance Management and Delivery Unit 2012)
Apart from the Malay community the programmes did not seem to really benefit other
Bumiputera groups including the Dayaks in Sarawak who are still lagging behind
economically educationally and socially this has resulted in their ranking as one of the top-
five communities with high poverty rate in the country (Shari amp Osman-Rani 1996
Government of Malaysia 2005 Doris et aI iOI2) TIie-M4kl~lD1ftlIRity ~~~ managed
to increase their living standard and quality of life after the introduction of the NEP and NDP
~
with many of them shifting jobs to become professionals and bureaucrats (Fakrul amp Wan
Norbayate 2011) This situation is a stark contrast to the statistics that illustrated a high
proportion of the Dayak community being involved in elementary ~occupati~r~such as jobs t 1
9
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
in services and sales work with many of them poorly paid and living below the official urban
poverty line in Malaysia
11 The Dayak Natives in Sarawak
Sarawak has a population of almost 25 million with the highest number of native population
Natives of Sarawak are made up of 26 different ethnic groups and they can be divided into
two broad groups the natives who inhabit coastal areas (Malay and Melanau) and the natives
living in inner parts of Sarawak (Dayak) The Dayaks make up approximately 420 of the
Sarawak population the Malays and Melanaus constitute 280 and 300 of the states
population are Chinese and others The Dayaks include the Iban Bidayuh Bisayah Kedayan
Kelabit Kayan Kenyah Berawan Lunbawang Penan and Punan people as stated in the
Malaysian Constitution the Ibans are the biggest ethnic group with 288 followed by the
Bidayuhs with 77 as reported in 2010 (Gaffin 2011)
Historically the Dayak community has traditionally lived in longhouses consisting of many
rooms with each family occupying a room In fact this lifestyle is still practised by certain
ethnics in certain parts of the state particularly the Iban and Bidayuh groups The longhouses
are built along riverbanks or streams as the community depends on waterways for daily
needs farming and even transportation Most Dayaks in Sarawak are involved in shifting
agriculture as their major economic actiVity due middot tOTheit1ldnmll~in W8~ipg the land and
forest They also carry out fishing and hunting activities as w~H as collect jungle produce for _
their livelihood In the 1970s the expansion of timber industry in Sarawak had opened up
more employment opportunities to the natives 480 out of 22490 jobs created were filled
by the local natives and the Dayaks (Hong 1987) 1 middot
10
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
In recent years services sector has shown the highest figure in age distribution of employed
persons by industry in Sarawak it accounted for 508 which includes electricity gas water
supply wholesale mechanic retail transport hotel restaurant financial intermediation rea
estate public admin education health and social work However agriculture hunting and forestry still recor1led high distribution of employed persons with 247 dominated by the
Dayaks (Sarawak 2011) The participation of the Dayaks in civil service is an area of
concern with only 46 out of 28220 applications being successful as recorded up to
September 2012 (Malaysia 2012) this has contributed to the high number of Dayaks
involved in the private sector In terms of business and SMEs another survey done in
Sarawak in 1999 on indigenous entrepreneurship showed that only 261 (Table 21) of non-
Malay Bumiputeras were involved in business while the rest were Malays and Melanaus
(Bumiputera Commerce amp Industrial Community 1999 Lian 2003)
Table 21 Number of Bumiputera Entrepreneurs by Ethnic Group in Sarawak
Ethnic Group Frequency Percentage
Malay 1688 604
Iban 453 162
Bidayub 132 47
Melanau 377 135
OrangUiu 57 19
Others 92 33
Source BCIC Master Plan Study ofSarawak l9~2(~QQ9)~bull~ ~
I
One of the root causes ofwidespread pOverty amongDayak in Sarawak is their low education
and lack of intellectual skills (Madel ine et al 2006 Doris et al 2012) A survey done
between 1992 and 1997 showed that almost 70000 students dropped out frQm schools in
Sarawak and 800 of them were Dayaks who came from pOo familie~ ii~middotrural areas of
11
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
Sarawak These poor families often faced financial difficulties in sending their children to
obtain higher education Sometimes these children had no choice but to start working at a
young age to help support their parents although they were likely to end up with poorly paid
jobs due to lack of qualifications and skills (Marshal) 2006) This is a vicious cycle causing
one generation ~er th_e next to be trapped in poverty In addition Shari and Osman-Rani
(1996) reaffirmed that poverty in Sarawak is caused by multiple factors including low
household incomes falling prices of agricultural produ~ts rural-urban migration of youths
lack of productive assets and credit facilities as well as lack of dynamic grass-roots
leadership
23 Entrepreneurship Concept and Variables
Africa and the United Kingdom are among many countries around the world that have
adopted entrepreneurship to improve their economic growth and eradicate poverty In order
to solve its problem of high unemployment the African government concentrated on
developing strong small medium and micro-enterprises to create job opportunities (Nieman
2001) Meanwhile the UK government aimed to increase levels of enterprise small business
and entrepreneurship in the country by developing its entrepreneurship education and
producing graduates with high capabilities in managing and applying knowledge in action
(Collins et al 2004) The UK government recognises small business as an important driver
of economic growth It is currently one of the ri11lirt ~J1ectsf~lit~~Ibull business and
management research (Beaver amp Carr 2002 Beaver amp Prince 2004) this is besides its role
_ in the supply chain its ability to bring in innovative products to the marketplace which
stimulates competition (Hewitt 2000) and its integration with modern economic and social
redevelopment (Stanworth amp Gray 1991) The vital role of entrepreneurs in economic and bull 1- bull I
12
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13
social growth has been recognised by many economists and entrepreneurs are seen as the
catalysts for transformation and improvement in the economy (Apospori el aI 2005)
There are several definitions of entrepreneurship and the best definition of this concept has yet to be agreed ulon Nevertheless it is widely accepted that the concept of entrepreneurship
is about creating or starting a new venture (Reynolds el al 2005) The various definitions of
entrepreneurship state that it involves a process of g~tting new ideas and innovatively
converting them into products or services with value (Johnson 2001) this is achieved by
taking major risks and devoting necessary time and efforts (Hisrich el al 2005) to turn
creative ideas into revenue It is believed that entrepreneurship is also a process of
incrementing wealth as true entrepreneurs are able to identify opportunities and seize them to
create something valuable to the market which in turn brings wealth to themselves or others
The wealth is not necessarily in financial terms but it also can be cultural social and
environmental enrichment
Entrepreneurial activity is shaped by various aspects such as entrepreneurs experience and
environment socialisation process and other motivation factors In particular career
dissatisfaction or having a family background of entrepreneurs can be a strong motivator for
entrepreneurial activity (Cromie el al 1992) On the other hand McClelland believes that
societies with a socialisation process that creates a high need for achievement produce more
~ middotrentrepreneurs (McClelland 1961) I 0 bull
For the purpose of the present study entrepreneurship potential is defined as possibility to
start a business whereas entrepreneurial intention refers to the desire to start up a business
Personality traits and social variables in the context of entrepreneurship are two of the most bull i f (II bull
13