Globalisation and Socio-economic Development in Malaysia: Wither Small Businesses?

Abstract

The paper discusses - by way of a case study - the effects of globalisation on small businesses in Malaysia. It examines how globalisation affects the work values of Malaysian corporate managers, which in turn influence their decisions regarding the small business community. Due to weaknesses in domestic governance systems and their own limited understanding of human rights and business management, small business owners often find it hard to overturn many of these decisions which inevitably cause hardship for them. The case is analysed in the context of existing literature on globalisation, cultural homogeneity and economic disparity, and derives implications for various stakeholders. The final part of the paper recommends measures that can help Malaysian small businesses enhance sustainability in a highly globalised environment. These measures include building a united and persistent small business community, improving domestic governance, raising public awareness of the rights of small business players and improving their innovativeness, efficiency and effectiveness.
Keywords: Small Business, Globalisation, Economic Disparity Cultural Homogeneity, Governance, Malaysia