Towards Sustainable Entrepreneurship: A Study of Financial Governance and Ecopreneurship in Malaysian MSMEs

Kusuma Dewi, Dewi Sarifah Tullah, Fazlida Mohd. Razali, Sudradjat Sudradjat, David H. M. Hasibuan, Ratih Puspitasari, Firdaus Amyar, Bambang Pamungkas, Ivonne Wiguna Agustinus, Sulistiono Sulistiono, Danti Astrini, Rizal Riyadi, Amanda Marsha Andinna, Multihardi Multihardi, Jan Febrian, Primadona Yuliahendri, Dyah Kusumaningtyas, Sri Mulyani, Sandrina Attalia Gani, Fitria Pandan Sari

Abstract


Micro, Small and Medium Enterprises (MSMEs) play a vital role in driving Malaysia's economic growth. However, sustainability challenges such as weak financial governance and limited adoption of environmentally friendly practices continue to hinder their development. This study aims to analyze the contribution of financial governance and ecopreneurship to supporting the sustainability of Malaysian SMEs. A questionnaire was distributed to 43 MSMEs in Malaysia to assess their perceptions and practices. The findings show that most businesses have implemented sound financial governance, especially in daily financial recording and the separation of personal and business finances. Nevertheless, areas such as financial risk management and decision-making based on financial reports remain underdeveloped. Meanwhile, all indicators related to ecopreneurship were rated as neutral, indicating a lack of environmental awareness and integration in business strategies. This study recommends enhancing the capacity of MSMEs through training and policy support to strengthen both internal governance and external environmental practices, aiming to build resilient and sustainable businesses.

Keywords


MSMEs; financial governance; ecopreneurship; sustainability; Malaysia

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DOI: http://dx.doi.org/10.52155/ijpsat.v50.2.7235

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