The importance of micro-entrepreneurs of felcra berhad towards application of Malaysian halal certification : challenges and opportunities

Abstract

The Federal Land Consolidation and Rehabilitation Authority (FELCRA) Berhad is responsible for rural economic development through various economic activities. FELCRA micro-entrepreneurs mainly engage in the food and beverage sector that has a high demand for halal products. However, many of them lack halal certification for their products, which is important for business growth and consumer trust. FELCRA Berhad does not provide a clear guideline for micro-entrepreneurs to apply for halal certification. There has been no previous research on the importance of halal certification among FELCRA micro-entrepreneurs to expand their businesses. This study aims to examine the challenges faced by FELCRA micro-entrepreneurs to apply for Malaysian Halal Certification, assess opportunities for business growth with halal certification, and propose a structured support guideline for micro-entrepreneurs to apply for halal certification. This study employs a qualitative approach with descriptive research, collecting primary data through semi-structured interviews and participant observation, complemented by secondary data from the literature review. The analysis of data is inductive thematic analysis. The findings show that FELCRA micro-entrepreneurs face challenges in applying for halal certification due to lack of awareness of the importance of halal certification, lack of halal certification competency training, and no clear guideline for halal certification application. However, they have opportunities for business growth with halal certification, as they possess a fundamental knowledge of halal food products and receive financial assistance and support system from FELCRA Berhad Entrepreneurship Development Unit and other government agencies to manage business operations. This study proposes a structured support guideline of halal certification for FELCRA Berhad to assist micro-entrepreneurs in applying for halal certification. This study contributes to the growth of FELCRA micro-entrepreneurs by empowering them with knowledge and skills to obtain halal certification successfully.