Malaysian Necessity Entrepreneurs: Drivers And Characteristics

On 11th March 2020, World Health Organisation (WHO) declared COVID-19, a pandemic due to the nefarious ‘SARS-CoV-2 virus’. The Malaysian Government implemented ‘Movement Control Order’ on 18th March, 2020 causing unprecedented unemployment to reach 4.55% at once and reached 5.3% in May 2020 (Unemployed was ‘826.1 thousand persons’) - indicating the highest rate, for the past 20 years as reported by Department of Statistics Malaysia. Malaysia transitioned to an endemic phase, on the 1st April 2022, with the reopening of its international borders, and this era was the beginning of post COVID-19 period. This led to a gradual increase of its economic activities, such as opening up of more food and beverage (F&B) services businesses. This research aimed to identify the prevalent entrepreneurial drivers and characteristics of F&B services business ‘necessity entrepreneurs’ (NE). Literature reviews were carried out on Entrepreneurship, Theory of Planned Behaviour, Entrepreneurial Intention, Krueger-Brazeal Model of Entrepreneurial Intention, Necessity Entrepreneur (NE), Serviere’s Venture Creation Model for Necessity Entrepreneurs, and Entrepreneurial Characteristics (Ernst & Young’s Entrepreneur Model). The research design was an exploratory case study qualitative research with an in-depth semi-structured interview session, comprising of a pilot study, and followed by a main study of 21 necessity entrepreneurs who were involved in the F&B service businesses in Malaysia. Thematic analysis was carried out with the application of ‘ATLAS.ti 23’ software. Findings suggested four novel drivers of NE, viz., family cohesion; inherited culinary skills; pursuit of culinary ambition; and unmotivated in their jobs. In addition, eight novel characteristics of NE comprising perseverance; patience; money management; wellness; kinship; creativity; communication network and self-discipline were indicated. The significance of this study would be important to policy-makers, practitioners and academics in Malaysia. Necessity entrepreneurship could be used to mitigate the present negative economic impacts of the post COVID-19 period and high inflation.