Public Service Delivery

1.2 Problem Statement

It is not an uncommon trend that the number of entrepreneurs continues to increase steadily worldwide. It is of critical importance to note that the problems and the challenges faced particularly by micro and small entrepreneurs today need to be taken into consideration. Besides, their successes need to be recognized for them to grow their businesses and to effectively access their business opportunities (Teoh & Chong, 2007). On the other hand, the central government is not only geographically distant but also psychologically and socially distant. However, local government plays an important role and it is operative in a centralized political system that does very limited in term of appreciating autonomy or public participation

Previous researches on performance of LA have revealed many non-consistencies, disciplinary issues and lack of appropriate and timely service delivery issues (Nooi, 2008). Political bosses, local authorities officials, leaders, public media and non- local authorities organizations (NGOS) have constantly reiterated the significance of LAs improve their services through a clear long-term direction, customer focus, effective communication and feedback response, high integrity and transparency, enhanced people’s participation and continuous efforts to inculcate a culture of high quality on their bodies (Haque, 1997).

These problems are not tolerable as these problems are not just restricted to local government. Nooi (2008) have indicated that based on a survey on how to improve public service delivery, Malaysian Administrative Modernisation and Management Planning Unit (MAMPU) have received about 700 responses via emails of criticisms and suggestions (The Sun,

In Malaysia, such as the business environment, events are demographics are changing rapidly, and the role of local authorities becoming more vital, as they are important component of modern economies and contribute significantly to the quality of life of small business owners in local communities. In fact, the local authorities Act 1976 provide local authorities with very comprehensive set of functions and powers, which cover the aspects of environments, public and social development of its inhabitants. In addition it also covers the street, drainage and building Act (1974), favor into local governments to perform their functions under the 1976 Act. These acts permits the local authorities to more provide better services to urban areas and focus their aim for the effectiveness of urban management, which plays a more dynamic role in national policy.

Currently the most urgent challenge for local authorities is to help the less and incapable owners of small and medium enterprises to face the economic and social challenges. More importantly there is a need to look at how LA could improves their services towards micro and small business owners. To promote local economic development and social development so that along with growth of Malaysian economy the small and micro business owners can also be