Challenges and opportunities in obtaining halal certification for women-owned micro-enterprises food products in Perlis

Abstract

This study examines the participation of Micro-Industry Women Entrepreneurs (MIWEs) in the halal food sector of Perlis, Malaysia, focusing on the challenges and opportunities related to halal certification. Women's involvement in the workforce is crucial for economic growth, especially in the halal industry, which has seen increased demand from a growing Muslim consumer base. However, the number of halal-certified establishments in Perlis is low, with only 53 out of 7,150 MSMEs holding halal certificates in 2023, highlighting a significant gap in certification among women-owned businesses. Women's participation in entrepreneurship is notably lower than their representation in the Malaysian population. Research indicates that women face disparities in social and cultural expectations compared to men, which, along with various challenges in their business ventures, restricts their economic engagement. Thus, the study aims to explore MIWEs’ involvement in the Perlis halal food industry, identify challenges hindering their access to halal certification, examine opportunities available, and propose guidelines for obtaining certification. A qualitative approach was adopted, utilising semi-structured interviews with fifteen participants, including seven women entrepreneurs and eight experts from various backgrounds. Data analysis involved inductive and deductive methods to identify themes related to the study objectives. The findings revealed that the external challenges consisted of limited employees for halal certification, inadequate facilities, low product marketability, and insufficient consumer demand for halal products. Internal challenges included a lack of IT skills in handling the MYeHALAL portal, a lack of positive attitude, and limited proactive engagement with government agencies. Several opportunities linked to obtaining halal certification revealed global demand for halal products, its significance in both local and international markets, customer satisfaction with halal certification, proactive government support for coaching MIWEs, and the positive impact of halal certification on business performance. The resulting guidelines for MIWEs are structured as a Standard Operating Procedure (SOP) comprising three phases: pre-application, application, and post-application, detailing 23 steps. This research provides valuable insights and resources for MIWEs to thrive in the halal industry while contributing to the existing literature on halal certification and Micro, Small and Medium Enterprises (MSMEs).