Capacity Building Grant Opportunity for Social Enterprises and MSMEs (Malaysia)

This grant will directly support recipients to implement high-impact, SDG-aligned initiatives that benefit both the enterprise and the communities they serve. Selected SEs will:

• Train and mentor local communities to build essential skills and capacity;
• Transfer knowledge to support sustainable income-generating activities;
• Scale community income generation by integrating individuals into the social enterprise, supporting business creation, and expanding employment opportunities.

The Livelihood and Social Entrepreneurship Project, supported by Microsoft, focuses on Johor and complements UNDP’s ongoing sustainable tourism initiatives in the state. These efforts recognise the potential of social entrepreneurship to drive greater impact by balancing economic growth with environmental preservation.

The project serves as a platform to empower local communities, livelihood and promote inclusive development. By aligning social enterprise initiatives with sustainable tourism, it aims to maximise socio-economic benefits while supporting Johor’s broader sustainability vision.

Objectives

• Build a national network of community-based social enterprise initiatives
• Train 10+ SE-nominated trainers to lead outreach and community-based training to 50 community members by each trainer
• Strengthen SE capacity to scale inclusive business models and community impact
• Enable partnerships with local communities to co-develop sustainable income strategies.
• Prioritise outreach to B40 communities, women, youth, PWD, and Orang Asli (OA)

Funding Information

• They are awarding 20 Social Enterprises (SEs) or impact-driven MSMEs, NGO or Cooperative with a Capacity Building Grant of USD 6,750 (approximately MYR 28,000) each.

Expected Outcomes 

• A stronger, more enabling environment for local SEs
• Increased community resilience and income generation by integrating individuals into the social enterprise ecosystem and value chain, supporting business creation, and expanding employment opportunities.
• Tangible progress toward poverty alleviation and SDG targets
• Empowerment of marginalised communities through SE-driven solutions

Expected Outputs

• A central SE-community network in Johor will be formed to share knowledge and collaborate
• 50 communities will be selected to work directly with SE trainers
• A Training of Trainers (ToT) programme will equip SE representatives to conduct grassroots trainings
• Communities will receive skills and tools to initiate income-generating activities

Eligibility Criteria

• They welcome Social Enterprises (SEs) and impact-driven MSMEs that meet the following criteria:
  • Registered in Malaysia:  With valid registration under SSM, ROS, or any legally recognised entity.
  • Mission-Driven: Operates with clear social or environmental objectives aligned with the Sustainable Development Goals (SDGs).
  • Community Focused: Currently working with or has the capacity to engage local communities, especially from B40, women, youth, Persons with Disabilities (PWD) or Orang Asli (OA) groups.
  • Community Livelihood: Currently working to strengthen community livelihoods in any sector. While a focus on the tourism sector is not required, it will be considered an added advantage.
  • Capacity and Readiness: Able to nominate at least 10 trainers for the Training of Trainers (ToT)
  • Demonstrates readiness to deliver a capacity-building initiative within the grant period (6–9 months)
  • Impact-Oriented: Can show potential to deliver tangible social or economic outcomes for both the enterprise and communities
  • Not-for-Profit or For-Profit Hybrid Models: Open to various legal forms (e.g. enterprise, cooperative, association, or NGO) as long as social impact is central to operations.

For more information, visit UNDP.