ISSN: 2222-6990
Open access
The outbreak of COVID-19 pandemic that leads to several movement control orders (MCO) announced by Malaysia’s government has been negatively affecting Malaysia’s economy from every sector and industry. The number of unemployed citizens has increased 52.9 percent and directly affecting Malaysian citizen especially the B40 group. Many citizens have started to embark on small businesses to raise their income and wealth. However, urban poor group were found to be less interested to start a business. Thus, this study aims to explore a new business model among urban poor family in Malaysia to start the business by using a cognitive approach named Business Model Canvas (BMC). The phases of BMC began by determining the basic idea and structure of the business process which then were classified into nine related elements. These elements depict the relationship for business purposes that allow the business owners to picture their business clearly and later manage them more effectively. The BMC serves to assist entrepreneurs in designing and developing their business platforms efficiently. For this study, in-depth interviews were carried out to 12 respondents from four different industries from three major cities of Malaysia. These 12 respondents from Kuala Lumpur, Johor Bahru and Penang were selected as these cities are the three big cities in Malaysia that hold a huge number of poverty level among urban poverty as compared to other cities in Malaysia. In-depth interviews offer the opportunity to capture rich, descriptive data about how people think and behave, and unfolding complex processes, and in this case, what business thinking they have in mind especially these B40 entrepreneurs. The result shows that only eight out of the nine elements in BMC were understood by these B40 entrepreneurs but they failed to understand the importance of key partners as an important interrelated element applicable to the urban poor family group to start their business. These entrepreneurs need to rethink of key partners’ element as part of their business model as business owners forge partnerships for many reasons and not just limited to acquire resources only. Further research is needed to validate the findings through questionnaires to a larger respondent among B40 groups in other cities as well.
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In-Text Citation: (Samat et al., 20221)
To Cite this Article: Samat, M. F., Annual, N. Bin, Yusoff, M. N. H., & Yaacob, M. R. (20221). Developing A New Urban Poor Family Business Model Using Cognitive Approach. International Journal of Academic Research in Business and Social Sciences, 11(8), 1622–1632.
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