MaGIC, myHarapan in US$238k funding collaboration deal for IMPACT
By Digital News Asia September 15, 2017
- Identified 242 youth beneficiaries and 10 early stage IDEs as potential micro-franchisors
- Focuses on micro businesses that require less than US$7,100 capital to start operations
MALAYSIAN Global Innovation & Creativity Centre (MaGIC) announced a collaboration with myHarapan which will see each contribute US$119,000 (RM500,000) to inject a total US$238,000 (RM1 million) into the Social Enterprise Ventures (SEV) fund.
[Corrected: An earlier version stated the wrong amount of contribution.]
SEV is the pilot fund for IMPACT, a newly launched social micro-franchising initiative. IMPACT was launched by MaGIC on Sept 5, 2017 in an event officiated by Chief Secretary to the Government of Malaysia Dr Ali Hamsa.
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.
On the sidelines of the Asia Pacific Social Business Forum hosted by the Malaysia Yunus Social Business Network in Ipoh over the weekend, Chief Minister of Perak Dr Zambry Abdul Kadir witnessed the collaboration ceremony between MaGIC CEO Ashran Ghazi and myHarapan CEO Nurfaini Daing.
Ashran 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.
“I am excited to collaborate with myHarapan on the pilot operationalisation of IMPACT. 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 programmes, IMPACT focuses on micro businesses such as food trucks, small hawker stalls, or mobile pop-up shops that require less than RM30,000 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 marginalised 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.
Nurfaini said: “To be able to provide meaningful means of employment to B40 communities across the nation requires the support and collaboration of all the stakeholders in the sector. We are grateful that MaGIC has included us as a key partner in IMPACT to help drive positive change.”
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