A SURVEY ON BUSINESS SUCCESS FACTORS INFLUENCING BUDGET HOTELS IN KLANG VALLEY

This paper explored the business success factors of budget hotels in Klang Valley as a study of this nature had not been attempted previously. A questionnaire survey was carried out in 2010/2011. The sampling frame was drawn from Malaysian Budget Hotel Association (MBHA) - listed members in Klang Valley region in Malaysia to obtain the perception of respondents from budget hotels. Responses from a sample of 95 respondents was then analysed using the reliability analysis. The alpha coefficients of contextual factors were more than 0.7 and the alpha coefficients of variables of size of business were 0.639. This variable had one item to be dropped from the scale to improve the Cronbach's coefficient alpha. The result of Pearson Product-Moment correlation coefficient indicated contextual variable, size of business and access to capital has a positive relationship with a p-value of less than 0.05. Further the regression analysis carried out indicated contextual factors, size of the business and access to capital does positively influence the perceived business success of the entrepreneur, while sources of capital, gender of the entrepreneur, skill and education level and origin of business does not exert any influence on the business success of the entrepreneur.