Abstract

This study aims to explore the impact of the outbreak during movement control order (MCO) to micro-entrepreneurs under Amanah Ikhtiar Malaysia (AIM) program and the current approach used to mitigate the impact of Covid-19 on their business.

This study conducted using a qualitative approach, an in-depth interview using a semi-structured interview format with six women micro-entrepreneurs under Amanah Ikhtiar Malaysia (AIM) program.

The selection of respondents through the non-probability sampling technique (purposive sampling) via the e-commerce platform of AIM is known as BazarSahabat. The paper provides two main themes for the impact on micro-entrepreneurs, namely financial issues and operational disruptions. Meanwhile, for mitigation approaches, the consensus pattern among respondents was related to adopting new norms, including changing business operation locations from the physical shop to home-based and online platforms. This study has a limitation in terms of generalizations of the findings and study focus.

However, despite the limitations, the researchers believe, the outcomes of the study able to be a steppingstone for future research in this study area. Thus, future research may further explore using survey analysis to a larger group of respondents to understand the impact and survival mechanism adopted by them in response to the crisis.

The paper includes implications of valuable insights to assist the regulator and related agencies, including Islamic micro institutions that are involved in micro-business development in conjunction with the crisis. This research is a pioneering attempt to understanding the impact of the outbreak during MCO to micro-entrepreneurs in Malaysia’s microfinance program and thus explores the current approach used to mitigate the impact of Covid-19 on their business.