Friday 29 Mar 2024
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This article first appeared in Capital, The Edge Malaysia Weekly on October 5, 2020 - October 11, 2020

Call me mad, but I’ve been toying recently with the idea of becoming an entrepreneur. I am still working out the intricacies of the business. Don’t worry, it is not another rubber glove factory, nor does it have anything to do with vaccines.

I had initially thought of waiting until I struck the lottery so I could use the winnings for my business venture. The probability is rather low, however, since I have no track record of lottery purchases nor any clue about how the lottery works.

Then I thought about applying for my company’s mutual separation scheme (MSS) and using the payout to pursue my entrepreneurial ambitions. But that would probably be insufficient, given how cash-strapped the media industry is these days.

Finally, it dawned on me that there is something far better than the lottery or a MSS — the banks. Everybody uses borrowed money these days anyway. Even countries run on trillions of debt. And no one blinks an eye! Debt — even a mountain of it — is now acceptable. And revenue is so passé.

The timing does look right these days, as interest rates are unlikely to dip below the present historic low of 1.75%. Many expect rates to stay depressed for a long time, looking at how the pandemic has really torn through economies globally.

Also, the pandemic has shuttered many businesses, leaving only the fittest behind.

While it is not good to gloat at the misery of others, now would be a really good time to be a budding entrepreneur because money for working capital is cheaper and new businesses would also have less competition.

So, my plan isn’t as radical as it sounds, as new businesses have been on the rise in recent times. Companies Commission of Malaysia statistics show that monthly registrations of new businesses since June have been surpassing the numbers from a year ago.

In June, there were a total of 39,931 new business registrations, with the number spiking to 49,550 the following month. The momentum slowed a little in August to 38,323, but what is worth noting is that it was still a lot more than the 29,539 applications recorded in August last year. Talk about more risk takers in uncertain times!

Apart from genuine opportunists like yours truly hoping to take advantage of the present circumstances to try out entrepreneurship, several theories have emerged for the spike in new business registrations.

One is that people are shuttering their businesses and starting anew.  So, possibly, after taking a two- to three-month sabbatical in their living rooms, some businessmen might have decided that it was time to put down their PlayStation 5 and start working on a new business concept.

Consider Macha Roti Canai Enterprise and its reincarnation, Matcha Roti Canai Enterprise. Apart from the addition of the letter “t” sandwiched between the “a” and “c”, the place still sounds trendy enough to capture the interest of millennials born with a silver spoon in their mouths, now deprived of their yearly overseas vacation. New business, new name, same product. Genius.

Another theory on why business registrations have gone up is that with the job loss rates in the first six months of the year so high, many people have chosen to be their own boss. Times are uncertain anyway, they say, and what’s left to lose after losing your job?

Besides, registering an enterprise costs only RM15. Why not try running a business instead of hunting for an elusive cushy job? Who knows, you might be the next Sugar King. Except, sugar trading is probably not a business to go into now. Maybe try … customised handmade masks?

Now, back to my entrepreneurial ambitions. Just recently, an old-time businessman asked me: “Young lady, are you sure you want to run your own business? It’s a headache. Everything becomes your problem, from workers and collection to delivery and even payables!” And then came the clincher: “If I had a chance, I’d go back to employment any day.”

It appears that the grass is always greener on the other side.

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