The Influence of Microtakaful Products on Halal Small Business Sustainability

Abstract

This study intends to investigate the influence of microtakaful products on halal small business sustainability in Malaysia. Due to their sizes, halal small businesses are normally faced with the catastrophe in their operations with not enough protection and knowledge of risk management. As a risk management tool, although microtakaful has opened a new paradigm of micro protection for halal small businesses, the extent as to which microtakaful products have contributed to the sustainability of halal small business is yet to be explored. Hence, this study explores a range of microtakaful products that can contribute to the sustainability of halal small businesses. The researchers have adopted quantitative research design and developed a survey questionnaire following an extensive review of literature. The designed questionnaire was used to collect data from 238 halal small business owners and workers in Klang Valley, Malaysia. Using multiple regression, the results show a positive and significant influence of disability microtakaful product on halal small business sustainability, as well as a positive and significant influence of family microtakaful product on halal small business sustainability. Whereas property microtakaful and health microtakaful products were found to be positively but insignificantly related to the sustainability of halal small businesses. Based on the findings of this study, it is recommended that disability microtakaful and family microtakaful products are the basic forms of risk management tools that are crucial for the sustainability/continuity of halal small businesses in Malaysia.