Malaysian Necessity Entrepreneurs: Drivers And Characteristics

Abstract

On 11^th March 2020, World Health Organisation (WHO) declared COVID-19, a pandemic due to the nefarious ‘SARS-CoV-2 virus’. The Malaysian Government implemented ‘Movement Control Order’ on 18^th March, 2020 causing unprecedented unemployment to reach 4.55% at once and reached 5.3% in May 2020 (Unemployed was ‘826.1 thousand persons’) - indicating the highest rate, for the past 20 years as reported by Department of Statistics Malaysia. Malaysia transitioned to an endemic phase, on the 1^st April 2022, with the reopening of its international borders, and this era was the beginning of post COVID-19 period. This led to a gradual increase of its economic activities, such as opening up of more food and beverage (F&B) services businesses. This research aimed to identify the prevalent entrepreneurial drivers and characteristics of F&B services business ‘necessity entrepreneurs’ (NE). Literature reviews were carried out on Entrepreneurship, Theory of Planned Behaviour, Entrepreneurial Intention, Krueger-Brazeal Model of Entrepreneurial Intention, Necessity Entrepreneur (NE), Serviere’s Venture Creation Model for Necessity Entrepreneurs, and Entrepreneurial Characteristics (Ernst & Young’s Entrepreneur Model). The research design was an exploratory case study qualitative research with an in-depth semi-structured interview session, comprising of a pilot study, and followed by a main study of 21 necessity entrepreneurs who were involved in the F&B service businesses in Malaysia. Thematic analysis was carried out with the application of ‘ATLAS.ti 23’ software. Findings suggested four novel drivers of NE, viz., family cohesion; inherited culinary skills; pursuit of culinary ambition; and unmotivated in their jobs. In addition, eight novel characteristics of NE comprising perseverance; patience; money management; wellness; kinship; creativity; communication network and self-discipline were indicated. The significance of this study would be important to policy-makers, practitioners and academics in Malaysia. Necessity entrepreneurship could be used to mitigate the present negative economic impacts of the post COVID-19 period and high inflation.