The young entrepreneurs in Malaysia have special funds to start-up or sustain their businesses.
Young and eager entrepreneurs have more than one reason to rejoice. Not only are business investors looking for dynamic young minds with fresh and new ideas nowadays but agencies and banks too are eager to acculturate youths in the country with the idea of entrepreneurship.
As we know there are ample grant programmes, research and commercialisation funds and cradle investment funds for new businesses to choose from but there are also special funds for Malaysian youths who into starting or sustaining their own businesses.
The Young Entrepreneur Fund is one such fund introduced by the government through the SME Bank. With low interest rates, the SME Bank provides financing opportunities of up to RM100,000.
Financing margins vary between 70% for used equipment and machinery to 95% for new tools and 100% for purchases of raw materials, stocks, overhead cost and advertising.
Youths between 18 and 30 who owns a registered business and has at least a vocational certificate can apply for the loan, even if their start-ups are less than a year old. Those without proper education qualification can apply for their in-house training to obtain a certification.
Similarly, the Graduate Entrepreneur Fund, also known as TUS (Tabung Usahawan Siswazah) is a soft loan scheme aimed at graduates. Youth who have just graduated (below the age of 40) can apply for a maximum loan amount of RM500,000 with a super low interest of between 4 and 5%.
Loans are given for new and existing businesses but those with a start-up are required to undergo and pass a training programme before they can apply.