A STUDY ON THE IMPLEMENTATION OF SOCIAL RETURN ON INVESTMENT (SROI) TO MEASURE THE SUCCESS OF MUSLIM MSMES IN CREATING JOBS IN LOCAL COMMUNITIES (Case Study in Kampung Felda Hutan Percha, Melaka, Malaysia)

Abstrak

This research is the result of an International Community Services (ICS) international collaboration between the State Islamic University (UIN) Alauddin Makassar, the University of Malaya Wales, and the University of Kuala Lumpur (UniKL) which was held on Sunday, May 17, 2026 at Kampung Felda Hutan Percha, Melaka, Malaysia. This study aims to examine the application of the Social Return on Investment (SROI) approach as an instrument to measure the success of Micro, Small, and Medium Enterprises (MSMEs) managed by Muslim business actors in creating jobs in local communities. Using a qualitative approach with a case study method, data was collected through in-depth interviews, participatory observations, and documentation studies of six key informants from MSME actors and Felda Hutan Percha community leaders. The results of the study show that Muslim MSMEs in Kampung Felda Hutan Percha not only generate economic value through the absorption of local labor, but also create significant social value through strengthening social capital based on Islamic values, women's empowerment, and improving household welfare. The SROI analysis identifies six dimensions of social return which include job creation, strengthening social capital, improving family welfare, internalizing spiritual values and Islamic business ethics, women's empowerment, and environmental sustainability. These findings confirm that SROI is a relevant and contextual evaluation framework to measure the holistic impact of Muslim MSMEs in the economic ecosystem of Islamic values-based communities.

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