The RM10mil boost to social enterprises in Budget 2020 will aid development of more inclusive startups and in turn help disadvantaged communities, says the Malaysian Global Innovation and Creativity Centre (MaGIC).
Its chief executive officer Dzuleira Abu Bakar says the new budget is a great boon to developing the digital economy, inline with MaGIC’s goals to modernise entrepreneurship through digital technology.
She says it is also an inclusive budget which will aid a larger segment of the public – from disadvantaged groups, youths and women.
The government believes that the allocation will encourage the development of social enterprises, and aid in improving socio-economic welfare and community building.
“MaGIC will continue to focus its programmes on such enterprises with an emphasis to benefit those in the B40 group,” she said, referring to low-income households.
So far seven companies have been recognised by MaGIC as social enterprises: APE Malaysia, Komuniti Tukang Jahit, Langit Collective, Tanoti, DID MY Academy Sdn Bhd, Biji Biji Design Sdn Bhd and Suri Inspirasi Sdn Bhd.
The three main criteria to obtain Social Enterprise Accreditation (SE.A) are that the organisation has a clearly stated social or environmental goal, allocates a significant amount of resources towards that goal and must be financially sustainable.