Financing Early Staged Technology Based Firms in Malaysia

Abstract

The establishment of various agencies to support and finance researches in universities and research institutes capable to grow Technology Based Firms was due to the Malaysian government’s recognition of Technology Entrepreneurship as an avenue to develop the economy industrially. Technology Based Firms (TBFs) have been widely accepted as a key influence in the economic development, wealth generation, employment and creation of new innovations. Although, despite huge investment in Research and Development and other public support from government to these group of firms, they still encounter difficulty in accessing the right and adequate amount of investment capital required to grow their firms to successful and global companies. The objective of this particular research is to find out the financing sources for early staged firms in Malaysia. The researchers interviewed 28 Technology Based Firms and 19 Venture Capital Firms in Malaysia through a qualitative approach to data collection. The data collected was transcribed, analyzed and coded with the aim of identifying the emergent themes relevant for the theme development for the study. This study finds that certain agencies of government are dedicated to supporting the growth requirements of young firms until they are capable to stand alone as independent companies.

Key-Words:- Technology Entrepreneurship, Government Fund, Venture Capital, Commercial Banks, Research and Development