Choose a viable business, Mohd Ali Rustam tells young Bumiputera entrepreneurs

The tendency of young Bumiputera entrepreneurs to choose an unviable business is the main reason for their failure, said Perbadanan Usahawan Nasional Berhad Chairman Tan Sri Mohd Ali Rustam.

"I'm really glad to see nowadays so many young Bumiputeras with an interest in becoming entrepreneurs, but the problem now is they don't know the best business to start with, this issue concerns me.

"They tend to be involved in the usual Bumiputera businesses like restaurants or grocery stores without realising they will have lots of competition.

"They think a business like that can give some kind of stability but the question is, how long can you stand in a saturated market like that?" he told Bernama in an interview.

It is reported that around 13 per cent of young Bumiputera entrepreneurs fail to maintain their business beyond 42 months from their business start date.

Mohd Ali said the government has done a lot for Bumiputera entrepreneurs especially by providing loans and guidance, but whether young Bumiputera entrepreneurs make it in the long run is up to them, so their first step is choosing a business with less competition.

"See the non-Bumiputeras especially the Chinese, which business do they choose? I don't see non-Bumiputeras involved in only one kind of business like the Bumiputeras flocking to the food business.

"The non-Bumiputeras choose a different kind of business, one with less competition," he said.

He said young Bumiputeras should focus on medium and high-end businesses such as automotive workshops, hardware stores and supply companies, which offer more business potential besides being less competitive.

"With a medium or high-end kind of business setup, you are not stuck with a really small grocery shop or food stall," he said.

He said only around 10 per cent of automotive workshops in the country are Bumiputera-owned even when demand for vehicle service and repair is high among Malaysians.

"The majority of Malaysians own a motorcycle or a car so the market is really big, but where are our young Bumiputera entrepreneurs to grab this opportunity?" he said.

Mohd Ali said automotive shops selling tyres and batteries are also a good business for young Bumiputeras.

He said young Bumiputera entrepreneurs should also venture into the supply chain business in order to strengthen their business in the long run.

"I was in Kelantan after the floods recently to check on the Bumiputera entrepreneurs, they have done well in restarting their business especially the hardware shops, but no Bumiputera company can supply the products in demand fast and efficiently enough, so the goods are supplied by non-Bumiputera companies.

"With their own supply chain, Bumiputeras can protect prices, benefiting consumers in turn," he said.

But Mohd Ali stressed that a 'lone wolf' can only do so much, and Bumiputera entrepreneurs must learn to work together in order to achieve greater heights.