An Overview of Foodpreneur Awareness among Small and Medium-Sized Enterprises (SME) of Halal Certification

By Tawil, Norngainy Mohd; Ramlee, Shamshubaridah et al. | Asian Social Science, September 2015 | Go to article overview

An Overview of Foodpreneur Awareness among Small and Medium-Sized Enterprises (SME) of Halal Certification


Tawil, Norngainy Mohd, Ramlee, Shamshubaridah, Jaafar, Jauhari, Saat, Firdaus Mohd, Asian Social Science


Abstract

The objective of this study is to measure the awareness of Halal Certification among the Small and Medium-sized Enterprises (SME) especially those who are involved in the food industry. The study reveals that the awareness toward Halal Certification among Small-Medium Enterprise (SME) is at low level. But that raises a question mark when the study also indicates that the perceptions of the Muslim entrepreneur on halal food are very good.

Keywords: Halal certification, small medium enterprise, Muslim entrepreneur

1. Introduction

Food innovation remains a growth platform of a company. The innovation creates and provides opportunities for the company to remain relevant to survive in an atmosphere of intense business competition. Malaysia as a halal product manufacturer with Halal logo by JAKIM gained world recognition can provide product differentiation advantages to SMEs to explore international markets. Although various incentives have been provided, it is only utilized by companies that have established themselves in the business for a long time. Therefore, the SMEs also should not let themselves left behind. Furthermore, the government has given a lot of effort to make Malaysia as a halal food hub of the world, so the SMEs need to utilize this opportunity to upgrade their business (Arif, 2009).

According to Zulkifli Hasan (2008), halal products now have a very high demand due to population growth increasing among the Muslim population of 57 countries. It is estimated that by 2010 the Muslim population increased to three billion people by 2025 while the number rise to 30 percent of the total world population. Therefore, halal hub has attracted many countries such as Thailand, Singapore, and Philippines who are aware of the development of halal products. Other countries like the United States and Australia are also scrambling to take this opportunity to become producers of halal products (Nur Razuani Razali, 2010).

2. Halal in Muslim Perspective

Malaysia is a nation with Muslim are the majority, so the concept of halal is a big factor of consumption. Muslim consumers need to consume products and service from various, which somehow doubtful(Ambali & Bakar, 2012). When we talk about halal, it is not referring to food only, but also all matters of daily life.

This covers all aspects of human life and the dietary system without an exception. A Muslim is expected to ensure the legal status of any food before eating it. The "halal" food is the food that is permitted by Syariah for consumption while the forbidden one is "haram".

The standards developed by Department of Standards Malaysia have been recognized world wide (Talib et al., 2008). Whereas Bornne and Weber (2008) mentioned that the mechanism of halal quality must depends on the condition need to be followed as required for Muslim consumers.

3. What Is Halal Food?

According to Asyraf (2011) and Ahmad Nizam (2006), Syariah (Islamic law) has set a certain condition to be fulfill as halal food and most of food manufacturers need to appoint halal food committee to avoid misused of halal logo.

4. The Important of Halal Certification

Halal Certification is the first step to expand the market for halal products to help consumers get products which is halal, safe and quality. (Ahmad Hidayat Buang et al., 2012). For micro and small enterprise that wants to penetrate the local market, effort to get Halal Certification status is something that is extremely difficult to achieve. The most common problem encountered is not to understand the demands of certification, which has resulted in this enterprise discontinue their desire to grow. They found that a claim or procedure is too complicated and requires high expenditure. Given that at least 80% of the food industry SMEs comprise Bumiputera enterprise where food is produced necessarily lawful, it is not fair if they are not motivated to get Halal Certification to expand their business. …

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