EMPOWERING SMALL AND MEDIUM ENTERPRISES IN TERENGGANU THROUGH TECHNOLOGICAL LEARNING AND INNOVATION FOR ECONOMIC GROWTH
DOI:
https://doi.org/10.18623/rvd.v22.n7.4108Keywords:
Small and Medium Enterprises, Economic Growth, Digital Transformation, FinancingAbstract
Small and Medium Enterprises in Terengganu play a pivotal role in promoting inclusive regional development, yet their capacity to drive technological progress, enhance productivity, and contribute to sustainable economic growth remains constrained by structural and systemic challenges. This study examines how financial accessibility, digital readiness, human capital capability, regulatory efficiency, and market connectivity collectively influence SME performance within the context of a developing regional economy. Drawing from an extensive review of contemporary literature and a structured conceptual analysis, the study identifies five interdependent issues that limit SME competitiveness, including restricted financing channels, uneven digital transformation, skills mismatches, fragmented institutional support, and narrow market reach. The findings highlight that these constraints function as mutually reinforcing conditions that suppress innovation, hinder value creation, and slow the transition of SMEs toward higher productivity activities. The study proposes an integrated framework for strengthening SME empowerment through inclusive financing models, targeted digitalisation strategies, industry aligned skills development, streamlined regulatory processes, and diversified market expansion pathways. The analysis contributes to existing scholarship by offering a regionally grounded perspective on SME development and demonstrating how coordinated interventions across financial, technological, human capital, and institutional domains are necessary for sustainable transformation. The study concludes that a holistic, collaborative, and long term strategy is essential for positioning SMEs in Terengganu as resilient, innovative, and competitive drivers of economic growth within Malaysia’s evolving development landscape.
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