ISSN: 2222-6990
Open access
This study explores the foundational elements that are required to establish a dedicated Business Development Centre in Perlis, Malaysia, that is aimed at empowering socioeconomically disadvantaged entrepreneurs. The research draws on structured survey responses from 63 asnaf entrepreneurs and in-depth interviews with four key entrepreneurship development institutions. The findings reveal that the Asnaf entrepreneurs demonstrate strong motivation, soft skills, and operational stability. However, many of them face persistent challenges, including limited access to financing, digital illiteracy, and gaps in technical, financial, and strategic competencies that are essential for business growth and sustainability. The study, therefore, highlights the need for a comprehensive, skill-based support centre that encompasses financial literacy, digital marketing, business planning, and mentorship. In addition, the entrepreneurs expressed a desire for a supportive environment that includes networking opportunities, spiritual enrichment, and accessible facilities. Institutional recommendations further emphasise the importance of a strategic location for a business centre, participant selection, ongoing monitoring, and multi-agency collaborations. The study concludes that a successful Asnaf business centre must go beyond the provision of physical infrastructure and funding, and be able to serve as a dynamic, integrated hub for capacity-building, strategic guidance, personal development, peer networking, and long-term entrepreneurial resilience. These contributions add to the growing body of knowledge on asnaf entrepreneurship and provide practical guidance for designing support centres for asnaf communities in Malaysia.
Abdullah, S., Daud Fhiri, N. S., Hussin, N. S., Tengku Yaakob, T. K. S., Azmin, A. A., Ishak, A. S., & Sallam, A. A. A. E. (2025). Empowering the marginalized: Characteristics of successful Asnaf social entrepreneurs in Malaysia. Journal of Advanced Research in Business and Management Studies, 38(1), 35–41. https://doi.org/10.37934/arbms.38.1.3541
Abdul Razak, A. Q., Rameli, M. F. P., Che Man, N., Mohd Fadzil, M. F., Mohamed @ Haji Daud, N., & Amin, S. (2024). Profiling study of the Asnaf Incubator Program across Malaysian states. Global Business and Management Research: An International Journal, 16(2s), 1244–1254.
Abe, M., Troilo, M., Juneja, J. S., & Narain, S. (2012). Policy guidebook for SME development in Asia and the Pacific. United Nations ESCAP. https://doi.org/10.18356/2075aecd-en
Akhmad, K. A., Karsidi, R., Rahayu, E. S., & Wijaya, M. (2018). The role of BDS-P in gap reducing SMEs and large enterprises in Indonesia. E3S Web of Conferences, 73, 10017. https://doi.org/10.1051/e3sconf/20187310017
Al Mamun, A., Muniady, R., Fazal, S. A., & Malarvizhi, C. A. (2019). Micro-enterprise development training and entrepreneurial competencies among low-income households in Malaysia. Asia Pacific Journal of Innovation and Entrepreneurship, 13(3), 354–366. https://doi.org/10.1108/APJIE-06-2019-0042
Aslan, ?., & Hjorth, S. (2018). The role of Business Development Center in Bingöl regional development. In Proceedings of the III. International Dmitri Yavoronitski European Congress on Social Sciences (pp. 52–61). Istanbul, Turkey.
Bahri, E. S., Ali, J., & Aslam, M. M. M. (2023). Successful of Asnaf entrepreneur: The role of knowledge, skills, and ability. AZKA International Journal of Zakat & Social Finance, 4(3), 1–22. https://doi.org/10.51377/azjaf.vol4no3.111
Dardak, R. A., Masdek, N. R., & Haimid, M. T. (2019). Agricultural technology incubation program in Malaysia. FFTC Agricultural Policy Platform. https://ap.fftc.org.tw/article/1585
Ghazali, F.H., Arsad, S., Said, R., Ismail, R.H., Yusoff, W. S. (2024). Exploring Challenges and Opportunities in Asnaf Entrepreneurship: A Pilot Study in Kedah. Proceedings of the 3rd International Conference on Business, Finance, Management and Economic (BizFAME 2024), 24-25 October 2024, Bangkok, Thailand. http: 10.2991/978-94-6463-827-1_12
Ghosh, B. S. (2001). Awareness and usage of business development services by MSEs in Java, Indonesia.
Goyal, S., Sergi, B. S., & Esposito, M. (2018). Business development services for micro, small and medium enterprises - literature review of past trends and future directions. World Review of Entrepreneurship, Management and Sustainable Development, 14(3), 312–332. https://doi.org/10.1504/wremsd.2018.10011937
Halim, H. A., Said, J., & Yusuf, S. N. (2012). Individual characteristics of the successful Asnaf entrepreneurs: Opportunities and solutions for Zakat organization in Malaysia. International Business and Management, 4(2), 41–49. https://doi.org/10.3968/j.ibm.1923842820120402.1040
Hanafi, A. G., Nor, N. F., Subri, N. I.,& Mustafa, W. A. (2025). Improving Basic Literacy Skills Among Asnaf Youth To Empower Their Financial Literacy. Advanced International Journal of Business Entrepreneurship and SMEs, 7 (23), 01-1
Hashim, N., Mohamad, A., & Othman, A. (2020). The challenges encountered by Zakat recipients’ entrepreneurs. International Journal of Zakat and Islamic Philanthropy, 2(1), 157–164. https://journal.zakatkedah.com.my
Indiran, L., Khalifah, Z., & Ismail, K. (2018). The challenges of business incubation: A case study of Malaysian incubators. In IEBMC 2017: 8th International Economics and Business Management Conference (pp. 0–5). Future Academy.
Islam, S. (2014). Business development services and small business growth in Bangladesh. Journal of Management Research, 14(3), 191–200. https://doi.org/10.13189/ujibm.2013.010206
Joremi, L., Muda, R., Mohd Zain, W. Z. W., & Rosli, N. A. (2023). The challenges of Asnaf entrepreneurs in forming entrepreneurial resilience. Information Management and Business Review, 15(3), 242–252. https://doi.org/10.22610/imbr.v15i3(I).3533
Kimando, L. N., Sakwa, M., & Njogu, G. W. (2012). Impact of business development services on enterprises in rural Kenya: A case study of micro and small enterprises in Muranga Town. International Journal of Business and Commerce, 1(9), 149–165. http://www.ijbcnet.com/1-9/IJBC-12-1914.pdf
Leylawati, J., Ruhaini M., Wan Zuraida, W. M., Z., Nor Azlin, R. (2023). The Challenges of Asnaf Entrepreneurs in Forming Entrepreneurial Resilience. Information Management and Business Review, Vol. 15(3), 242-252.
Lose, T., & Tengeh, R. K. (2015). The sustainability and challenges of business incubators in the Western Cape Province, South Africa. Sustainability, 7(10), 14344–14357. https://doi.org/10.3390/su71014344
Mohamed Imtiyaz, M.N., Abdul Razak, D., Kassim, S & Che Embi, N.A. (2022). Contemporary Issues in Financing Micro Enterprises in Malaysia: A Qualitative Inquiry from Practitioners Perspective. Journal of Management and Muamalah, 12(1), 55 – 73. https://jmm.uis.edu.my/index.php/jurnal/article/view/119
Mustapa, W. N. binti W., Al Mamun, A., & Ibrahim, M. D. (2018). Economic impact of development initiatives on low-income households in Kelantan, Malaysia. Social Sciences, 7(7). https://doi.org/10.3390/socsci7070118
Meerangani, K. A., Hamid, M. F. A., Hashim, S. N. I., Sharif, D., Jofri, M. H., & Mansor, M. S. (2023). Digital platform potential for Asnaf Zakat entrepreneurs: A systematic literature review. International Journal of Academic Research in Business and Social Sciences, 13(1), 1184–1199. https://hrmars.com/index.php/papers/detail/IJARBSS/11230
Mohd Arif, M. I. A., Mamat, N., Md Ramli, R., Mat Rani, M. A., & Adenan, F. (2022). The vital factors in the development of rural Asnaf entrepreneurship: A review. Al-Qanatir: International Journal of Islamic Studies, 26(2). https://www.al-qanatir.com/aq/article/view/476/272
Muhamat, A. A., Jaafar, N., Rosly, H. E., & Abdul Manan, H. (2013). An appraisal on the business success of entrepreneurial Asnaf: An empirical study on the state zakat organization (the Selangor Zakat Board or Lembaga Zakat Selangor) in Malaysia. Journal of Financial Reporting and Accounting, 11(1), 51–63. https://doi.org/10.1108/JFRA-03-2013-0012
Nawi, M. N. M., Osman, W. N., Anuar, H. S., Othman, M. K., Radzuan, K., Yaakob, M., Zulhumadi, F. (2025). Enhancing Technical Training Program for ASNAF Trainees through Educational Technology: A Case from the Technical and Vocational Training Centers. Journal of Information Systems Engineering and Management, Vol.10 (1S), 166-172.
Shiyuti, H. A., Zainol, F. A., & Yusoff, M. N. H. (2022). Product distributional mechanism as an Asnaf entrepreneurship support: A case study in Wilayah Persekutuan Kuala Lumpur, Malaysia. In B. Alareeni & A. Hamdan (Eds.), Financial technology (FinTech), entrepreneurship, and business development (Lecture Notes in Networks and Systems, Vol. 486, pp. 617–628). Springer. https://doi.org/10.1007/978-3-031-08087-6_41
Shiyuti, H. A., Mat Zin, Z., & Zainol, F. A. (2023). Gaps that prevent Asnafspreneurs from success: A case study in Selangor. European Proceedings of Finance and Economics (EpFE). https://doi.org/10.15405/epfe.23081.55
Sukhur, S. S., & Bakar, S. A. (2018). Factors contributing to the incubation performance of Malaysian technology incubators. Economic and Technology Management Review, 13, 33–43.
Sulaiman, S., Abd Hamid, N., Othman, R. D., Che Saruji, S., & Che Muhamad Faiz Aimullah, C. M. F. (2024). Determining the success factors of micro-businesses in the post-pandemic era: Empirical evidence from Asnaf entrepreneurship in Malaysia. Journal of Asian Scientific Research, 14(1), 38–49. https://doi.org/10.55493/5003.v14i1.4980
Tengku Mohamad Azizuddin, T. M., Noormariana M. D., & Abdullah, A. Mamun. (2021). Issues and Challenges of Zakat Institutions Achieving Maqasid Syariah in Malaysia. AZKA International Journal of Zakat & Social Finance, Volume 2(No.1) 46.
World Bank. (2010). Global good practice in incubation policy development and implementation (Report No. 70023). The International Bank for Reconstruction and Development / The World Bank. https://documents1.worldbank.org/curated/en/981161468331855750/pdf/700230ESW0P11100Business0Incubation.pdf
Tuan Mahmood, T. M. A., Al Mamun, A., & Ibrahim, M. D. (2020). Attitude towards entrepreneurship: A study among Asnaf millennials in Malaysia. Asia Pacific Journal of Innovation and Entrepreneurship, 14(1), 2–14. https://doi.org/10.1108/APJIE-06-2019-0044
Yusof, M. F. M., Wan Mohd Khair, W. I. A., Romli, N., Bhari, A., Yaakob, M. A. Z., Khalid, M. M., & Abdullah, M. Y. (2025). A systematic literature review for improving the development of agricultural Asnaf entrepreneurs in Malaysia. International Journal of Research and Innovation in Social Science (IJRISS), 9(4). https://doi.org/10.47772/IJRISS.2025.90400466
Saad, N. M., Saiid, B. A., Mansor, M. F., Embi, N. A. C., & Jaiyeoba, H. B. (2025). Developing Micro-Entrepreneurs through Business Incubation Centre. International Journal of Academic Research in Business and Social Sciences, 15(10), 107-124.
Copyright: © 2025 The Author(s)
Published by HRMARS (www.hrmars.com)
This article is published under the Creative Commons Attribution (CC BY 4.0) license. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this license may be seen at: http://creativecommons.org/licences/by/4.0/legalcode