Norazimah Mejri, Azlan Yusof Punding , Sitti Hawa Sheikh Muhammad
Social entrepreneurship has increasingly been recognized as a strategic avenue for fostering inclusive economic development while addressing critical societal and environmental challenges. In Malaysia, the model has gained momentum as a response to pressing issues such as poverty, educational disparities, public health, and sustainability. Despite its potential, the social entrepreneurship landscape in Malaysia remains constrained by a series of systemic barriers, including limited public awareness, underdeveloped regulatory frameworks, insufficient institutional support, and challenges in measuring social impact. Existing literature often lacks a comprehensive analysis that contextualizes these challenges within the Malaysian socio-economic environment, revealing a significant research gap. This concept paper seeks to critically examine the prevailing issues impeding the advancement of social entrepreneurship in Malaysia. Employing a qualitative methodology, the study draws on an extensive review of academic literature, policy documents, and case-based insights collected over a five-year period (2019–2023). The findings identify five principal challenges: inadequate public understanding of the concept, absence of long-term supportive policies and regulatory clarity, limited entrepreneurial capacity and expertise, insufficient utilization of cooperative structures, and the lack of standardized evaluation frameworks for impact assessment. This study contributes to the academic discourse by offering nuanced, context-specific insights and policy recommendations aimed at cultivating a more robust and enabling ecosystem for social entrepreneurship in Malaysia. The implications extend to stakeholders across sectors, underscoring the need for integrated strategies that align entrepreneurial innovation with sustainable development objectives.