Role of family tradition in entrepreneurial training: a case of Malaysian family based small and medium enterprises performance

Abstract Family businesses play a vital role in economic development but face low survival rates, with fewer than two-thirds enduring beyond the first generation in Malaysia. Despite government support programs, family-specific traditions and characteristics are often overlooked in entrepreneurial training. This study examines how tradition-oriented training design influences the performance of family-owned SMEs in Malaysia. Data were collected from 396 family business owners through a self-administered survey during government training programs. Using partial least squares structural equation modeling (PLS-SEM), results show that training designs emphasizing family traditions significantly enhance business performance. The study contributes novel evidence on the role of tradition in entrepreneurial learning design and offers practical implications for policymakers and agencies seeking to improve family business sustainability. Findings align with the UN Sustainable Development Goal 8 (Decent Work and Economic Growth) and are especially relevant to emerging economies.