Building a Collaborative Future: SEAM’s Role in Enhancing Malaysia’s Social Enterprise Landscape

In Malaysia, the social enterprise (SE) sector is gaining momentum, driven by a collective vision to blend entrepreneurial spirit with a commitment to community and environmental well-being. With strong support from agencies such as Ministry of Entrepreneur and Cooperatives Development (KUSKOP), Sabah Creative Economy and Innovation Centre (SCENIC), Sarawak Digital Economy Corporation Berhad (SDEC), Institut Keusahawanan Negara Berhad (INSKEN), and foundations like Yayasan Hasanah and Chamber of Social Entrepreneurship Development (CSED), social enterprises are becoming crucial players in addressing the nation’s most pressing social and environmental challenges.

Social enterprises are more than just businesses; they are grounded efforts to blend entrepreneurial spirit with a deep commitment to community and environmental well-being.

Unlike traditional businesses, which often prioritise profits, these enterprises strive to create tangible positive impacts, all while ensuring their financial sustainability.

Driving Impact Through Innovation

Social enterprises in Malaysia are addressing some of the nation’s most pressing challenges. According to a 2018 survey by the British Council and the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), there are over 22,000 social businesses in Malaysia, with 444 registered social enterprises under the KUSKOP. 

These organisations focus on a range of issues, including poverty alleviation, environmental sustainability, and social inclusion. As reported by the same survey, the local social enterprises show a significant impact in various sectors:

Addressing Poverty and Economic Inequality:

  • 32% of Malaysian social enterprises are focused on addressing poverty and economic inequality. They provide job opportunities, skills training, and support for communities that are marginalised. 
  • These enterprises help empower local communities by creating jobs and offering vocational training, contributing to economic empowerment and community development.

Environmental Impact:

  • 21% of social enterprises in Malaysia focus on environmental issues, offering eco-friendly products and services that reduce waste and promote sustainable practices. These enterprises have undeniably created a positive impact on the environment, with those producing biodegradable packaging have reduced plastic waste in urban areas by up to 15% in some regions. Additionally, many of these organisations emphasise upcycling waste materials into usable products, further decreasing the amount of waste sent to landfills.

Improving Access to Education and Healthcare:

  • 25% of these enterprises are dedicated to improving access to education and healthcare, especially in rural and underserved areas. They offer free or affordable education and vocational training, empowering individuals with essential skills for the workforce. Some of these enterprises also provide healthcare services in remote areas, making healthcare accessible to communities that would otherwise have limited options.

Source from British Council 2018

Key Challenges for Social Enterprises

Despite their significant contributions, social enterprises encounter several obstacles that hinder their growth. Studies from the British Council (2018) and the Impact Accelerator Case Study by Biji-biji Initiative (2022) highlighted common challenges across the sector.

  • Lack of Expertise: Many social enterprises struggle with limited technical capacity and professional knowledge. This gap extends to communication strategies and social media skills, which are crucial for effective outreach and impact.
  • Lack of Funds: Financial constraints and a lack of capital are major barriers. Without adequate funding, social enterprises find it challenging to sustain and expand their operations.
  • Absence of Networking: Difficulties in collaborating with government agencies and a lack of mentorship, community involvement, and corporate partnerships limit the growth potential of these enterprises.
  • Personnel Shortage: Social enterprises often face a shortage of human resources and talent, affecting their ability to implement and scale their initiatives effectively.
  • Lack of Recognition: There is often a lack of acknowledgement and understanding from the government, communities, and the public regarding the contributions and impact of social enterprises.

How SEAM Facilitates Growth and Tackles Challenges

To address these challenges, the Social Enterprise Accelerator Malaysia (SEAM) programme was established through a strategic partnership between Biji-biji Initiative and IKEA Social Entrepreneurship, with support from IKEA Malaysia. Understanding the key challenges faced by these entrepreneurs, SEAM is designed to bridge ecosystem gaps and provide essential support to social enterprises through three main pillars:

  • Tailored Mentorship and Capacity Building: SEAM offers personalised mentorship and capacity-building workshops tailored to the specific needs of social enterprises. IKEA co-workers serve as thought partners, mentors, and coaches, bringing business expertise that enhances operational skills and helps organisations navigate challenges more effectively. Such customised support ensures that these impact leaders get the right tailored resources specific to their respective growth needs.
  • Resource and Financial Support: The programme provides crucial resources and access to funding opportunities, helping to close the funding gap and enabling social enterprises to invest in growth and innovation.The funding opportunity from the SEAM programme enables these enterprises to pump the right resources into key operational areas within their business, enabling them to scale and further grow their organisation. 
  • Advocacy and Visibility: SEAM aims to actively amplify the voices of social enterprises, boosting their visibility and recognition within the broader business landscape. This includes raising awareness of the social enterprise model and the impact it brings to the society and environment, in the spirit of inspiring and advocating for other businesses to also take heed towards creating impact. 

A Vision for a Collaborative Future

SEAM envisions a stronger social enterprise ecosystem where collaboration among social enterprises, government agencies, private sector partners, and grassroots organisations, each contributing their unique strengths to drive collective impact. By building connections and offering the right support, SEAM strives to make the social enterprise sector more inclusive and resilient, capable of addressing Malaysia’s most pressing challenges. By working hand in hand, we can break down barriers, and work towards a sustainable and equitable future for Malaysia. 

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