Malaysian Global Innovation & Creativity Centre (MaGIC) has entered into a collaboration with myHarapan which will see each contribute MYR500,000 into the Social Enterprise Ventures (SEV) fund. SEV is the pilot fund for IMPACT, a newly launched social micro-franchising initiative. IMPACT was launched by MaGIC in September 2017. IMPACT creates micro-franchising opportunities for successful Impact Driven Enterprises (IDEs) with great ideas and sustainable business models to franchise their businesses to B40 beneficiaries anywhere in the country.
MaGIC CEO Ashran Dato’ Ghazi said: “The main objective of IMPACT is to address the growing socioeconomic disparities in Malaysia by increasing entrepreneurship opportunities among B40 communities, and spreading entrepreneurship growth more evenly throughout the country. This in turn will help to create meaningful employment opportunities for the B40 communities, helping them to secure more independent and sustainable lives. We hope this pilot will be the first of many, helping both aspiring social entrepreneurs and successful impact driven enterprises scale up and expand their reach across the nation.”
As part of the collaboration, MaGIC and myHarapan have identified a pool of 242 youth beneficiaries and 10 successful early stage IDEs as potential micro-franchisors for IMPACT. Unlike traditional franchising programs, IMPACT focuses on micro businesses such as food trucks, small hawker stalls, or mobile pop-up shops that require less than MYR30,000 capital to start their operations. IDEs are businesses that are created to solve a social mission, and are qualified to participate in IMPACT if they have a successful track record of running at least two stalls generating sustainable income and follow preferential hiring policies that favour marginalized groups. Aside from creating employment opportunities for the B40 communities (beneficiaries), IMPACT also offers profit-sharing opportunities for the beneficiaries running the micro-franchise. The IDEs will provide training to the beneficiaries on how to establish and run the businesses. The SEV fund will help IDEs and micro-franchises with capital needs, allowing the initiative to scale rapidly.
Source: Media Release