To implement a housing development project, homebuilders should perform the following: acquire land, alter land use to suit the intended development purpose, integrate resources required for the projects, interpret the demand and supply of the market, provide housing units, and finally sell the completed houses. Furthermore, actual housing projects must also incorporate the provisions of various prescribed facilities and amenities as well as safeguard the environment 1. Jaafar et al. 2 posit that the most critical supporting factors of housing development are finance, land, building materials, and consultancy services. Appointed consultants, who generally include architects and engineers, must follow all of the regulations imposed by the government; these regulations include obtaining permission approval, following the guidelines for construction activities, and adhering to the conditions imposed upon completion of a project, such as procedures for procuring a Certificate of Completion and Compliance (CCC).
Figure 11.1 presents the processes and procedures involved in project development. Jaafar and Wan-Daud 3 state that the practices are quite similar for both large and small projects. However, micro-developers without a development license must provide certain infrastructure facilities, such as elevated water tanks, electricity sub-stations, and other public amenities.
Hynes and Richardson 4 define training as a knowledgeable initiative to educate specific skills for the enhancement of individuals and organizations. Training nascent entrepreneurs is important because it encourages a tendency to start a business 5 and boosts the likelihood of entrepreneurial intention 6. According to de Mel et al. 7, increased profits and improved management practices can be formed with efficient training, which is believed to reduce the rate of business failures 8. An ideal scenario could be achieved if entrepreneurs can quickly adapt to the industry and the environment. As a part of entrepreneurial activities, the success of housing entrepreneurs also depends on flexibility and uncertainties.
The Malaysian housing sector is commonly referred to as ‘a rich businessman’s game’ that is monopolized by large companies, including S P Setia Berhad, Sunway Berhad, Mah Sing Group Berhad, Paramount Corporation Berhad, UM Land, and a few government-related agencies. The lucrative returns of the housing sector have attracted companies from different sectors to join the industry. Sime Darby Plantation, YTL Communications, and Naza Motor Trading Sdn Bhd are only a few examples of mega players in other industries that have diversified into the housing sector. In view of the high impact of the industry toward the environment, people tend to recognize these giant companies and ignore the existence of small and newly established companies. The existence of micro-and small housing development firms has been mostly ignored, particularly in large Malaysian cities, such as Kuala Lumpur, Penang, and Johor Bahru. Land cost is the main constraint for the start-up and survival of such firms. However, small and new firms can still take advantage of the less developed cities in Malaysia, where the land cost is still affordable. Many micro-and small housing developers operate in East Peninsular Malaysia, particularly in Kelantan and Terengganu, because of the lack of houses provided by large housing developers in this area.
As previously mentioned, private housing developers in Malaysia register with the Real Estate and Housing Developers’ Association (REHDA). With branches in each state of Malaysia, REHDA serves a central function in ensuring that the views of housing developers are heard by relevant authorities and government agencies 9, 10. The REHDA Institute is responsible for providing courses and training to the industry players. The main task of REHDA Institute is to address and facilitate the training and education of the industry. Courses and seminars offered for industry players are related to legislation/regulations/policies/procedures, corporate/financial aspects, technical and infrastructure aspects, property market data, analytical tools, and marketing prospects. According to a survey by Ali 11, housing developers noted that the courses organized by the government sector, the private sector, or NGOs are more focused on the acts and licensing of the housing process than on the procedures or technical aspects.
Elias and Pihie 12 reveal that attending courses and seminars, especially after starting a company, promotes entrepreneurship and influences the success of an entrepreneur and a firm. Moreover, Ali 13 indicates that attending courses and seminars for business start-ups can ensure the smooth operation of a company. Attending short courses can be considered informal education, which has been recognized as an important tool for providing excellent exposure and information to an individual striving to become an expert, skilful, and well-trained entrepreneur. Examples of informal education (can be reaped by participants) on the part of housing developers are personal networking with other experienced entrepreneurs 14 and having a mentoring relationship with industry experts 15. Exchanging ideas and opinions, participating in first-hand learning, and sharing experiences with fellow participants are all beneficial practices that housing entrepreneurs can utilize to achieve business longevity in the future 16.
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