Motivations of SME entrepreneurs to become halalpreneurs

This paper aims to address the factors associated with a propensity for halal entrepreneurship among small and medium enterprise (SME) entrepreneurs.

Data were gathered from SMEs in Malaysia by conducting a survey with 209 respondents. Data were analyzed with the partial least squares technique.

Results indicated that halal entrepreneurship, intrinsic motivation, effort to seek out opportunity, perceived desirability, peer influence, perceived feasibility and perceived governmental support significantly affected halalpreneurial propensity among SME entrepreneurs. On the other hand, the effects of creativity and innovation, honesty and integrity, risk taking attitude, relative advantage and family supports on halalpreneurial propensity were not supported.

Through identification of the motivational factors to be recognized as a halapreneurs, policyholders in Malaysia would be able to successfully promote halal entrepreneurship in this country. In this regard, policymakers can adjust their tactics and strategies in a way which encourage halal entrepreneurship among SME entrepreneurs.

This study aimed to serve as an initial step in understanding the cognitive process of SME managers in embarking on halal business.