THE FUTURE OF SMALL AND MEDIUM ENTERPRISES (SMES) ON A SKILLS-DRIVEN ECONOMY: TEVT'S ROLE IN ENHANCING COMPETITIVENESS AND SUSTAINABILITY IN PERAK

Abstract

This study investigates the strategic role of Technical and Vocational Education and Training (TVET) in enhancing the competitiveness and sustainability of small and medium enterprises (SMEs) in Perak, Malaysia. By integrating TVET as a mediating variable, the research offers a novel conceptual framework that links policy support, technological adoption, and networking initiatives to SME performance outcomes. Drawing on empirical evidence, the study reveals that TVET significantly amplifies the impact of these enablers by addressing skill gaps, improving operational efficiency and fostering market adaptability. The findings also highlight persistent systemic barriers such as financial constraints, limited access to TVET resources, and urban-rural disparities that hinder SME development. Practical recommendations are proposed for policymakers, TVET institutions and SME stakeholders, including streamlined regulatory reforms, customized training modules, and sustainability-focused programs. The study contributes theoretically by bridging gaps in existing literature and practically by offering actionable insights for ecosystem strengthening. Ultimately, this research underscores the transformative potential of TVET in driving inclusive, resilient, and environmentally responsible SME growth, positioning Perak’s enterprises as vital contributors to regional and national development.