by Dr Gabriel Wee Wei En

Malaysia must introduce early entrepreneurship education to strengthen SMEs, build resilient talent and support long-term economic growth.

It must start much earlier – for Malaysia’s future.

In Malaysia today, more than 71,000 youth-owned establishments contribute to the economy, employ hundreds of thousands of people and generate billions in wages. These numbers are encouraging, yet they represent only a fraction of the country’s enterprise landscape and reflect the broader state of entrepreneurship in the country.

The real question is not whether young Malaysians can build businesses. It is whether we are introducing entrepreneurship early enough for many more to try, and whether industry is prepared to shape that journey alongside education.

This is ultimately a question about how Malaysia approaches entrepreneurship and prepares small and medium-sized entreprises (SMEs) for the future.

For decades, entrepreneurship has been framed as something that begins after formal study. Finish school, earn a degree, then consider launching a venture. By the time students reach convocation, however, much of their attitude toward risk, authority and initiative has already been formed. They have become highly capable at answering questions, following instructions and avoiding mistakes.

Those qualities support employment, but they do not automatically prepare someone to create value in uncertain conditions. If Malaysia wants a generation able to build the next wave of economic growth, capability development cannot wait until adulthood.

Early Exposure and SME Readiness

A substantial body of research shows that early entrepreneurial exposure strengthens creativity, resilience and opportunity recognition. More importantly, it builds a sense of agency – the belief that change can be initiated rather than waited for. Confidence forms through repeated practice: trying, adjusting, observing role models and trying again. Over time, action becomes normal. Malaysia has made meaningful progress. Government and university programmes now connect aspiring founders to mentors, funding channels and validation mechanisms.

In Sarawak, structured pathways increasingly link learners to industry even before they enter the market. These initiatives prove that talent is widespread. Yet support often arrives at a time when individuals must already decide whether entrepreneurship is realistic. For many, hesitation has accumulated for years. When exposure begins late, doubt is difficult to undo. For SMEs, this delay is not abstract as it affects daily operations.

Business owners frequently describe the challenge of recruiting graduates who can navigate ambiguity, communicate with customers or contribute improvements without constant supervision. Firms invest significant time turning new hires into problem solvers.

When entrepreneurial learning begins earlier, SMEs inherit people who already understand iteration, responsibility and value creation. Productivity rises faster, adaptation becomes easier and innovation is more likely to happen within existing companies rather than only in startups.

Entrepreneurship in Malaysia’s SME Ecosystem

Across Southeast Asia, youth enterprises are increasingly recognised as vital for economic resilience. Malaysia’s policy ambition is clear, with national strategies emphasising innovation, partnerships and sustainability. But ambition must be matched with continuity. Entrepreneurial confidence develops over years, not workshops.

This is particularly important for Sarawak. A region positioning itself in digital economy leadership, green development, tourism, creative industries and modern agriculture requires citizens who can identify opportunities and mobilise solutions. Behavioural evidence is straightforward: people act when they believe they can succeed and when action feels achievable.

Those beliefs accumulate gradually through guided participation. For SMEs attempting digital transformation or market expansion, this foundation is invaluable. Employees who are comfortable testing ideas, learning from feedback and engaging partners shorten the distance between strategy and execution.

Education as Economic Infrastructure

Education, therefore, should be understood as economic infrastructure. Problem exploration, experimentation and collaboration with real users are not extracurricular additions. They are the training grounds where future workers and entrepreneurs learn how value is created. When students reach university having practised initiative for years, institutions can accelerate ambition instead of dismantling fear.

Measurement systems must evolve in parallel. When achievement is defined primarily by examination performance or immediate employment, institutions optimise for completion. Yet competitiveness also depends on adaptability and opportunity recognition. Recognising prototype development, industry engagement and enterprise participation as legitimate outcomes signals that creation matters.

Funding approaches should follow the same logic. Support that appears only after someone declares a startup intention is often too late. Earlier and repeated exposure, supported by mentors and business communities, makes entrepreneurship visible and attainable.

Partnering SMEs for Long-Term Capability

SMEs are essential partners in this process. Firms that engage learners early by offering real problems, internships, site visits or mentorships are not simply contributing to education. They are shaping the workforce they hope to hire. Many discover unexpected benefits: fresh insights into customers, new process ideas and access to emerging talent already familiar with their challenges.

In this relationship, SMEs are not passive recipients of graduates; they are co-developers of capability.

In some higher education institutions, entrepreneurship is embedded throughout the learning journey rather than reserved for the end. Students collaborate with companies, test ideas with users and face the realities of implementation long before graduation. Instead of simulating enterprise, they operate in environments where outcomes carry consequences.

Industry partners, particularly SMEs, consistently observe that such students adapt faster, require less direction and begin contributing sooner. The exchange becomes mutually reinforcing – businesses gain perspective while learners gain confidence.

For policymakers, the message is simple. Entrepreneurial capacity is cumulative. It grows through sustained interaction among schools, universities, communities and firms. When continuity exists, the nation achieves more than higher startup numbers. It builds organisations capable of renewal, public services able to innovate and regions prepared for uncertainty. Ultimately, entrepreneurship education is not only about producing founders. It is about developing people who feel authorised to improve systems, create opportunities and solve problems wherever they work. For SMEs, this translates directly into stronger teams, quicker innovation cycles and greater competitiveness.

For SMEs, the lesson is clear: investing time in early engagement with learners is not a cost but a long-term strategy for building a more capable, adaptable and innovative workforce that can support business growth and resilience.

Starting early is therefore not just an educational reform. It is an economic strategy.