Abstract
Purpose The present paper aims to propose a viable alternative model for human capital development (HCD), termed as the integrated cash waqf micro enterprises investment (ICWME-I) model, which is expected to contribute to the development of micro enterprises in Malaysia. Design/methodology/approach This is a conceptual paper for the development of the ICWME-I model. It is purely qualitative in nature, using content analysis. It comprehensively reviews the literature related to HCD issues faced by micro enterprises and existing studies related to cash waqf (Islamic endowment) to construct the ICWME-I model. Findings The proposed ICWME-I model is specially designed for HCD of micro enterprises. It is an appropriate initiative to upgrade micro enterprises through HCD programmes by ensuring proper utilization of cash waqf funds to build modern training centres at subsidized costs with state-of-the-art facilities. The training centres would subsidize the participation fees of micro enterprises and provide them with facilities to undertake education and training programmes, as well as other kinds of activities for upgrading, improving and enhancing human capital capacity and skills of micro enterprises. The potential challenges of the ICWME-I model are also highlighted in this study. Research limitations/implications This paper attempts to construct the ICWME-I model based on an extensive review of literature related to micro enterprises, cash waqf and HCD. Among its major limitations is the fact that the ICWME-I model is not empirically validated and tested in this research. This can be carried out in future studies. Practical implications The present study could have an enormous impact on micro entrepreneurs via HCD programmes. The most important impact would be on government budgets, as this ICWME-I model is expected to generate its own funds from cash waqf for micro enterprises’ HCD. Originality/value This paper brings forward an original and viable model to develop human capital for micro enterprises development. This model involves the building of training centres using cash waqf raised from donors.
Highlights
The concept of human capital development (HCD) is very vast
To meet micro enterprises’ need of HCD, an alternative suggestion using waqf (Islamic endowment) has been proposed by scholars (Ahmed, 2004; Karim, 2010; Tohirin, 2010; Amin, 2011; Muhammad, 2011). These studies have suggested the use of waqf funds to enhance HCD of micro enterprises through the building of training centres and the provision of training programmes and education courses for skills enhancement. Against this background and in view of the potential of using waqf funds for HCD, the aim of this paper is to propose a viable alternative model for HCD called the “Integrated Cash Waqf Micro Enterprises Investment (ICWME-I)” model
Human capital challenges of micro enterprises in Malaysia Several studies point out that lack of skills, low level of education, improper training courses and inaccessibility of training programmes are among the factors that hamper HCD of micro enterprises in Malaysia
Summary
The concept of human capital development (HCD) is very vast. It is a combination of various human qualities comprising knowledge, skills, abilities and competencies which are attained gradually by the process of education and training for the well-being of individuals, institutions and the society (Becker, 1993). These studies have suggested the use of waqf funds to enhance HCD of micro enterprises through the building of training centres and the provision of training programmes and education courses for skills enhancement.
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