Budget 2027 can help small businesses survive. But can it help them last? — Nik Zirwatul Fatihah

November 9 - Small businesses may thrive daily but struggle to balance the books. After covering expenses, owners often find little profit. This question must be asked after Prime Minister Anwar Ibrahim unveiled Budget 2027 on October 9. While the government's financial aid offers a lifeline, the key issue is whether this help can turn businesses into sustainable enterprises in the long run?

The budget allocates RM6.6 billion for microfinancing and RM200 million for Sejahtera MADANI grants, aiming to help 40,000 recipients, especially women, with equipment and training. These initiatives acknowledge the financial barriers entrepreneurs face when trying to improve their operations. Acquiring better equipment, like a more efficient sewing machine for a tailor or additional working capital for a neighborhood store, can make a difference.

But does more capital guarantee financial strength? Consider a small restaurant that secures funding to expand operations. Though sales might rise, so do expenses. Without proper pricing, cost control, and cash flow planning, the owner could work harder without earning more. This shows that business growth doesn't always lead to profitability, and years of operation don't guarantee financial resilience.

The challenge is to ensure entrepreneurs can turn financing into lasting improvements, not just survive another day. Assistance should be tailored to each business's unique needs rather than assuming all face the same challenges. Digitalisation, for instance, can streamline transactions and support decision-making, but merely accepting digital payments isn't enough.

A business may become more convenient but still financially vulnerable without understanding daily expenses and profit margins. The author argues that entrepreneurship support should be gauged by whether businesses become more profitable, resilient, and less reliant on repeated aid. Metrics like profit margins, financial management, and ability to withstand market fluctuations should be considered.

Sustainability isn't the same as rapid expansion; some entrepreneurs aim for stability rather than rapid growth. Combining financing with mentoring, financial tools, and regular assessments could help entrepreneurs identify weaknesses, improve decision-making, and build long-term resilience. Budget 2027 presents an opportunity to strengthen Malaysia's micro and small businesses, but its impact should be measured by how much businesses improve and sustain their growth over time.