Strategic Human Capital Development and Its Impact on Social Enterprise Growth in Malaysia

Abstract

This study explores the impact of strategic human capital development on the growth of social enterprises in Malaysia. Social enterprises address social issues while contributing to economic growth, with projections of contributing RM20 billion to GDP by 2030. Data from the Malaysian Global Innovation & Creativity Centre (MaGIC) reveal that strategic hiring and talent retention strategies can boost revenue growth by up to 25%. However, human resource challenges, including limited funding for training programs, hinder the scaling of these enterprises. Companies that prioritize HR development report operational efficiency improvements of 15-20%. To overcome these challenges, the study recommends government-backed HR development grants tailored to social enterprises, focusing on recruitment, training, and talent retention to drive sustainable growth.