Microtakaful: a lesson from Malaysian low-income women entrepreneurs

Women entrepreneurs possess a pivotal role in accelerating social and economic growth, creating significant contributions on a national and global scale. However, their accomplishments and significance are sometimes ignored. This study investigates the need for microtakaful products among Malaysian Low-income women entrepreneurs (B40 Women Entrepreneurs), as well as the ways in which these products might assist these women’s ventures. Using a qualitative approach, the study employs semi-structured interviews, analysed using Nvivo software to identify recurring themes within the collected data. The study reveals a strong perceived demand for microtakaful among low-income Malaysian women entrepreneurs, where the women both acknowledge the significance of having takaful and show positive intention to engage in the products. Nonetheless, the study highlights three factors: affordable pricing, Takaful benefit coverage and Takaful agents that can influence their attitude and intention toward takaful products. These results indicate that the Takaful sector holds substantial potential for growth and for supporting women small-business owners. The findings suggest the need to develop customised microtakaful products with features and framework tailored to the specific needs identified in this study. This presents policymakers and regulators with a significant opportunity to promote financial inclusion by facilitating the development and distribution of microtakaful products specifically designed for women-led microenterprises