PETALING JAYA: Social enterprises are classified as business activities that are primarily motivated by social good where profits are reinvested towards a social cause.
According to the State of Social Enterprise in Malaysia, there are 20,749 enterprises in the country.
Cash flow (55%), the lack of awareness of social enterprise in Malaysia (36%) and recruiting staff or volunteers (33%) remain the top challenges of social enterprises.
Social enterprises in Malaysia are largely viable and successful businesses. Slightly over one third of respondents are making a profit (37%), while 32% of social enterprises are breaking even. However, 31% of respondents say that they have yet to generate profits.
This appears to be a more positive picture than for SMEs in general. According to Malaysia’s SME Masterplan 2012-2020, 42% of enterprises registered in 2000 closed down by 2005. While more recent and concrete data on the failure rate of SMEs is unavailable, researchers estimate that this may be anywhere between 40% and 60%.
The most common sector in which Malaysian social enterprises operate is education, with 22% of respondents working in this sector.
A further 16% of social enterprises operate in the environment and sustainability sector.
The most common sector in which Malaysian social enterprises operate is education. – REUTERSPIX
Source: The Sun Daily