Title: Review of related issues on poverty and entrepreneurship in Malaysia

Authors: Nur Tasnem Jaaffar; Nuraini Abdullah; Abdul Rahim Ridzuan; Azlini Che Hassan; Tisya Farida Abdul Halim

Addresses: College of Computing, Informatics and Mathematics, Universiti Teknologi MARA (UiTM), 40450, Shah Alam, Selangor, Malaysia ' Faculty of Business and Communication, Universiti Malaysia Perlis (UniMAP), Pusat Perniagaan Pengkalan Jaya, Jalan Alor Setar – Kangar, 01000, Kangar, Perlis, Malaysia ' Institute of Big Data Analytics and Artificial Intelligence, Komplex Al-Khawarizmi, Universiti Teknologi MARA (UiTM), 40450, Shah Alam, Selangor, Malaysia ' Faculty of Business and Communication, Universiti Malaysia Perlis (UniMAP), Pusat Perniagaan Pengkalan Jaya, Jalan Alor Setar – Kangar, 01000, Kangar, Perlis, Malaysia ' Faculty of Business and Communication, Universiti Malaysia Perlis (UniMAP), Pusat Perniagaan Pengkalan Jaya, Jalan Alor Setar – Kangar, 01000, Kangar, Perlis, Malaysia

Abstract: Nearly 700 million people worldwide live in extreme poverty, earning less than $2.15 per day. Entrepreneurship serves as a survival strategy for those with limited education and skills, particularly in the informal sector, which offers low-barrier entry. In Malaysia, the poverty rate rose from 5.6% in 2019 to 6.2% in 2022, affecting 490,000 households. This study systematically reviews literature on the link between poverty and entrepreneurship in Malaysia, identifying five key themes: the impact of microfinance and development programs, Islamic microfinance and development issues, the resource-based view (RBV), women entrepreneurs, and new models. Findings indicate that research primarily focuses on microenterprise growth rather than the long-term sustainability of informal micro-entrepreneurs.

Keywords: poverty; entrepreneurship; poverty alleviation; microenterprise; enterprise development.

DOI: 10.1504/IJGSB.2024.145736

International Journal of Globalisation and Small Business, 2024 Vol.14 No.4, pp.337 - 361

Received: 15 May 2024
Accepted: 07 Jan 2025
Published online: 18 Apr 2025 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article