| Issue |
SHS Web Conf.
Volume 34, 2017
The 17th Annual Conference of the Asian Academic Accounting Association (2016 FourA Conference)
|
|
|---|---|---|
| Article Number | 08006 | |
| Number of page(s) | 6 | |
| Section | Management Accounting and Costing | |
| DOI | https://doi.org/10.1051/shsconf/20173408006 | |
| Published online | 14 February 2017 | |
The impact of minimum pay implementation on small businesses operating cost and sustainability: A case of service business
Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Malaysia
* Corresponding author: hanim@uum.edu.my
The implementation of minimum wage requirement in Malaysia beginning mid 2016 seems to impact both employees and employers in different ways. While this implementation could increase household income and claimed to boost employees’ productivity, employers or business operators, on the other hand are experiencing stringent effect on their business operating cost. The effect is more significant for small business operators, including the childcare centers. Childcare industry operates in the service sector, which represents the main contributor of Malaysian SMEs. Unfortunately for the industry, there is an increasing numbers of childcare centers have to cease their operation due to inability to comply with the minimum pay requirement. In the absence of thorough understanding of the phenomena, the small businesses, particularly among institution-based childcare, is at the risk of losing their businesses. This exploratory study intends to assess how the implementation of minimum pay requirement affects the existing operating cost structure, and consequently business sustainability of Malaysian childcare industry.
© The Authors, published by EDP Sciences, 2017
This is an Open Access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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