EXPLORING THE ROLE OF GOVERNMENT ASSISTANCE TOWARDS MICROENTERPRISES' PARTICIPATION IN TAKAFUL: A QUALITATIVE PERSPECTIVE

Abstract

The study aims to discuss a comprehensive overview pertaining to the microenterprise’s participation in Takaful with the aid of government role. This study was conducted qualitatively where the data gathered through semi-structured interview with a microenterprise’s owner. The findings revealed three distinct themes that consist of business operations and risk exposures, the awareness of microenterprise owner with regards to Takaful and Insurance schemes, and his perception towards government role in assisting business owner to participate in Takaful. From the findings, it showed that low risks encountered by the owner due to strategic location of his business and there is an awareness on the importance of protection (Takaful/insurance) in protecting himself and his business. Furthermore, the findings also discover the limitation of the owner’s understanding relating to government assistance in helping the microenterprises to participant in Takaful scheme. The findings of the study enrich the existing knowledge about the obstacles and possibilities encountered by microenterprises. Additionally, the data gathered can be used to develop policies and support systems that are specifically designed to address the business risks among microenterprises.