Quest Journals Journal of Research in Business and Management Volume 9 ~ Issue 2 (2021) pp: 39-45 ISSN(Online):2347-3002 www.questjournals.org Nor Hafizah Hasan 39 | Page FPTM, Universiti Sultan Azlan Shah, Perak, Malaysia The Mediating Effect of Entrepreneriul Orientation in the relationship between SME’s Developing Program and Business Success of SME in Malaysia Nor Hafizah Hasan (Faculty of Management and Information Studies, Universiti Sultan Azlan Shah, Perak, Malaysia) ABSTRACT : The aim of this study to analyze the relationship between SME development program on the success of SMEs in Malaysia. The key areas studied were access programs to human capital development, access programs to financing, and market access programs organized by SME Corporation and related agencies. This study also aimed to determine the role of the mediator variable that is entrepreneurial orientation on the relationships between SME development program with the success of SMEs in Malaysia. The quantitative survey design was used and data was collected from 500 SMEs from the manufacturing, services, agriculture, and others that registered with SME Corp. This study also used systematic random sampling techniques. Statistical analysis conducted to test the research hypotheses using SPSS version 23.0 were descriptive analysis, correlation, and regression. The findings showed that there was a significant and positive relationship between SME development program and SME success (R=0.937, P=0.001), and entrepreneurial orientation also has a relationship as a mediator between SME development program and SME success in Malaysia. (R2=0.56, P=0.001). This study contributed to a specific strategy for SMEs on how entrepreneurial orientation acts as a mediator for SME development programs and SME success in Malaysia. In conclusion, this study is in line with the government's requirements to ensure that every SME is applied with the right entrepreneurial knowledge through the SME development program conducted, while entrepreneurial orientation creates the ability to be more proactive, competitive, innovative, and risk-averse SMEs in Malaysia. KEYWORDS: SME Development Program, Entrepreneurial Orientation, Business Success Received 10 Feb, 2021; Revised: 23 Feb, 2021; Accepted 25 Feb, 2021 © The author(s) 2021. Published with open access at www.questjournals.org I. INTRODUCTION In developing countries such as Malaysia, Small and Medium Enterprises (SMEs) are seen as a mechanism to increase income distribution, stimulate economic growth, and reshape the economic structure that is highly dependent on the activities of large firms (Mohsin, Halim, Ahmad, & Farhan, 2017; Murjan, 2012). This is supported by the Prime Minister of Malaysia where he has explained that SMEs are the backbone of the Malaysian economy (SME Annual Report, 2017). Along with the growth of the SME industry, it has increased the chances of success among SMEs in turn has great implications for the growth and socio-economic well- being of the country (Asia Pacific Economic Cooperation [APEC], 2004). The establishment of successful SMEs has the potential to create new job opportunities, increase trade and income, and in turn can increase Gross Domestic Product (GDP) which has an impact on the country. However, a study conducted by O 'Regan & Ghobadian, 2004 on SMEs shows a lack of consistency in business is by taking into account factors such as entrepreneurs have experienced at least one failure in managing their business. In addition, there are differences from the findings of Nor Hafizah (2018) study in which some researchers associate success with the influence of individuals (ie, entrepreneurs) and other external factors such as economic conditions, government policy, financial support, and infrastructure to enable a person successful SME entrepreneur. Small and Medium Enterprises (SMEs) are often associated with growth and development in a country due to economic and social contributions, as well as encouraging competition in the market. However, inconsistent findings in the literature trigger the need for researchers to conduct further studies on the factors that influence the success of SMEs. The establishment of successful SMEs has the potential to create new job opportunities, increase trade and income, and in turn can increase Gross Domestic Product (GDP) which has an impact on the country. However, a study conducted by O 'Regan & Ghobadian, 2004 on SMEs shows a lack of