A Beginner’s Guide: What is a Startup in Malaysia?

A Beginner's Guide-What is a Startup in Malaysia
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Suggesting from the title of our article, today, we will be talking about only one topic – startup. Some of you might still be confused about what a startup business is all about.

Well, startups are young companies established by one or more group of entrepreneurs; their purpose is to start and expand their services or products to the market.

Some might call Malaysia a ‘startup heaven’ – and we understand why. Malaysia is one of the key countries in Southeast Asia for startup businesses. Startups in Malaysia vary in different industries – financial services, digital media, software, e-commerce and many more! All these businesses continue to grow and expand until today; some are even expanding overseas! 

However, there are always the pros and cons of something – startup businesses included. Before you step into the startup industry, you’ll have to know the pros and cons to it.

Continue reading for a few examples of the advantages and disadvantages of a startup.

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Advantages of a Startup

  • Flexibility in Almost Everything
Flexibility in Almost Everything

One of the advantages of a startup is in terms of flexibility. Unlike other established companies, those in the startup industry do not operate fixedly. Startups often have requests and necessities that are distinctive. Hence, the working hours, locations and manners are often based on what suits you best.

  • Strong Team Culture
Strong Team Culture

Nowadays, big companies often lack team cultures. They are often focusing on the money – and not the reason why they’re doing the job. However, for startups, that isn’t one of the problems. Considering how startups often consist of teams with the same passion, values and beliefs, they have a great team culture. Teamwork is the priority for them. 

  • Fun, Fun, Fun!
Fun, Fun, Fun!

Being in a startup is undoubtedly filled with fun – especially when you’re working with people as passionate as you are. Besides, you also have the advantage of choosing which clients you want to work with; no more boring and serious clients! Organising fun activities after work is also very common when you’re in a startup.

Disadvantages of a Startup

  • Challenges
Challenges

We can all agree that all kinds of jobs have their challenges. But let’s admit – it’s not a walk in the park to start a new company. For startups, to continue improving and expanding, most of the time, you’ll have to work at long hours. Profits and revenues for startups are sometimes low too. It is also common for startups to close down due to the lack of compensation.

  • High Risk of Failure
High Risk of Failure

Stepping into the startup industry, you’ll have to be ready to face a high risk of failure. There are a lot of scenarios where they often after one year of operation. Also, it will be difficult for them to attract and take in staffs which are experienced and proficient. Thus, it can affect their business in the long run.

  • Lack of Resources
Lack of Resources

Compared to other big and established companies, startups often work on a meagre budget. Hence, this gives off an opportunity for their competitors with higher budgets to push them out of the market. 

So, those are the advantages and disadvantages of a startup. If you’re ready to overcome all of the obstacles, then it wouldn’t be a problem for you.

However, if you’re just getting started in the industry, why not join some accelerators for startups? Of course, just pick accelerators which are suitable for your needs. We’ve compiled a few examples of companies in Malaysia which offer these startup accelerators:

Startup Programmes in Malaysia

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1. MaGIC’s MSC for Startups

MaGIC’s MSC

MSC for Startups is a programme launched by Malaysia’s national ICT custodia, Multimedia Development Corporation (MDEC) and MaGIC as its partner. This programme mainly functions to accelerate and facilitate Malaysian-based startups in gaining recognition.

Their goal is to ensure that Malaysia becomes the Startup Capital of ASEAN. For further information on the programme, you can browse through their website here.

2. NEXEA Accelerator

NEXEA Accelerator

For the NEXEA Accelerator Program, they offer mentoring sessions for the participants. The mentors are all successful entrepreneurs and businessmen who started and even sold their businesses. This intensive mentorship program lasts up to 6 months and has no deadline for the application. So, sign up today if you’re interested!

Check out their website for more information.

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3. Selangor Accelerator Program (SAP) 2020

Selangor Accelerator Program (SAP) 2020

This accelerator program was launched by the Selangor Information Technology & Ecommerce Council (SITEC). It is primarily for Malaysian startups under tech. SAP lasts for as long as four months; training is provided for startups to be investor-ready.

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