Breaking Barriers: Investigating Technology Adoption in Micro, Small, and Medium Enterprises (MSMEs) Among Low-Income Women Entrepreneurs in Malaysia

In Malaysia, the B40 segment, particularly low-income women entrepreneurs, faces distinct challenges in adopting technology within their businesses. This qualitative study explores the low uptake of technology adoption among these entrepreneurs to understand the underlying dynamics. By addressing the "what" and "why" of low technology adoption, the research aims to provide insights for fostering inclusivity and empowerment within Malaysia's entrepreneurial landscape. The study involved an in-depth focus group discussion with 25 women entrepreneurs from four states across Malaysia, utilizing thematic analysis with Atlas TI. Key findings reveal issues related to technology adoption based on TAM theory. The findings indicate that most entrepreneurs are integrating technology into their business operations, either through social media marketing, e-commerce platforms, cashless payment methods, online delivery services, and machines, regardless of whether they are located in rural or metropolitan areas. The majority of the respondent are utilizing technology through their social media marketing. These situations have arisen as a result of the impact of COVID-19, which has compelled all entrepreneurs to adopt technology, even at a minimal level. The majority use social media platforms like Facebook and WhatsApp for marketing and adopt online banking and cashless payment methods such as DuitNow QR Code, Touch 'n Go, Boost, Shopee Pay, and Sarawak Pay. Despite using online food delivery services like Food Panda and Grab Food, trust issues such as payment delays, non-payment by drivers, and high commission fees make these platforms less appealing. Additionally, entrepreneurs prefer traditional methods over machinery to maintain quality and struggle to meet e-commerce demand due to their small-scale production, limiting their ability to fully use technology for business growth and sustainability. The findings support the theoretical insights of the TAM model and suggest actionable strategies for fostering technology adoption and empowerment among low-income women entrepreneurs in Malaysia.