The barriers hindering the application of the value chain in Malaysia

Abstract

Using the article, this paper seeks to identify the challenges limiting the use of value chain in SMEs in Malaysia especially in the rural entrepreneurship. Barriers like, regulatory issue, restricted availability of raw material and technology, limited access to foreign markets and lack of technology exchange greatly obstructs the opportunity of SMEs to enhance their value chain. These challenges not only affect the performance of ordinary business entities, but also slow the development of Malaysia’s overall economy and society. Removing these barriers by developing better, appropriate infrastructure, access to technology, better market access and simplification of regulations could lead to rural SME development and contribute to the overall economics of the country. Such findings emphasize the need to incline appropriate strategies and policies to assist SMEs overcome them and operate within the globalized business world.