Determinant factors for sustainability of small and medium-sized enterprises (SMEs) in sports coaching business industry in Malaysia

Abstract

In Malaysia, many small businesses failed before their 5th anniversary. Small businesses made up a major percentage of the businesses and provide jobs for 50% of the populace. The purpose of this study was to explore the factors required by small businesses in Malaysia to sustain operations beyond the first five years. The underlying theories discussed in this study were Self-Determination Theory, Self-Management Competency Theory, and Resource-Based View. A review of the literature focused on small business failure and factors required to sustain a business longer than five years which contributed from a good service quality of sports coaching for achieving a sustainable competitive advantage and personal values of the sports coach who were passionate to conduct the effective sports coaching activity. The first stage of this research methodology was to conduct a qualitative research method which is by interviewing 10 small business owners in different fields of the sports industry. Then, the second stage was done by distributing a questionnaire developed from the interview sessions. This research targeted 225 respondents. Data analysis strategies consisted of correlation and regression using SPSS software. Factors required for small business sustainability were: (a) effective strategizing, (b) flexible financial capital management, (c) human capital development, and (d) market positioning and sales. The research found that small business owners in sports businesses were passionate about starting up their businesses and have the necessary skills to strategize effectively and manage capital, thus sustaining their business beyond five years. Information derived from this study may assist small business owners in starting successful companies that support employees, other companies, communities, and families, contributing to the development of the Malaysian economy.