Introduction

Transformational entrepreneurship is a new model of economic growth where the social

entrepreneurship and technology entrepreneurship meet together. This will bring a long-term
impact to the social and economic. This would not only benefit to the economic but also
bring good impact to people as transformational entrepreneurship is a creative business idea
which solves the world’s biggest problem (Max 2012).

The business idea that GrabKakak company proposed as transformational entrepreneurship is

to develop an application for the retirees to find a part-time job easily that reach one of the
United Nation Development Goals, which is decent work and economic growth. The project
vision is to be the leading cleaning and babysitter service application that provides customer
with high quality service. The project mission is to provide extraordinary cleaning and
babysitter service for everyone who needs, while increasing retirees’ living standard.

Issue
The social problem in Malaysia being identified is that there are 88% of Malaysian pre-
retirees were worried about their life after retirement as they do not have enough money
(Kanyakumari 2015) (Appendix 1). Only 18% of members have achieved the targeted
minimum savings which is RM228,000 by age of 55 set by the EPF board. More than 68% of
EPF members aged 54 had EPF savings of RM50,000 and below (Tang 2017).

This issue had becoming serious as there are about one-third of the 1,574 people staying in
the Welfare Department’s old folk home are those who abandoned by their children as they
are a financial burden to them (Chew 2015). The group of people affected by this issue are
Malaysian retirees who aged 60 and above. There are 2.7million, which is 8.8% of the total
population people who aged 60 and above in Malaysia. It is expected to increase to 15%,
which is 4.9 million people by 2030 (Chew 2015). The affected area mostly is in urban area,
especially in Kuala Lumpur.

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Propose solution to the social issue

Based on the social issue discussed, Malaysian pre-retirees’ have to earn more to save for
retirement life. The proposed solution to this issue is the introduction of a free application,
namely “GrabKakak” (Appendix 2). It is developed to act as a platform for Malaysian pre-
retirees to apply themselves as a part-time worker to provide service to app users (consumers)
who demand for a part-time maid or part-time babysitter.

According to the research from Malaysian Maid Employers’ Association, there are more than
around 250,000 registered foreign domestic workers in Malaysia (Khidhir 2017). However,
the cost is too high to hire foreign domestic workers in Malaysia (Appendix 3). Many
consumers have resorted to hire part-time worker due to the high cost incurred in employing
foreign domestic help (Jasmine 2018).

Since the demand of part- time worker in domestic market is increasing, so “GrabKakak”
application can provide a job opportunity to Malaysian pre-retirees to have the chance to earn
extra income after they retired. They can provide a service to work as a part-time worker via
“GrabKakak” application, reducing the financial burden to pre-retirees and their children to
improve their living standard (Santosh 2018). This project can help pre-retirees earn a
minimum of RM 60 for 4 hours of cleaning in one day (Muthiah 2011).

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Societal impact
Value of gross output in services sector contributed 38.7% to overall economy of Malaysia in
2015. 15.19 million people formed up the labour force in Malaysia with 14.68 million
employed persons and 509,000 unemployed persons. While 7.09 million is outside labour
force which includes housewives, students, retired, disabled persons and those not interested
in looking for a job (DOSM 2018).

This project acts as a platform to income opportunities, applicable for normal occupations
and also the disadvantaged and marginalized segments (dropouts, retirees, housewives, low-
incomers, unemployed, ex-convicts). It encourages those outside labour force to join in and
contribute to the country’s economy. It can help retirees to lessen their financial difficulty in
retirement life, assist housewives to be relatively financial independent and other individuals
in earning extra income. This project offers consumer convenience through saving of time
and transportation cost. In the context of economy, this project is capable to increase
Malaysia’s economic productivity and foster an increase in Gross Domestic Product
(Compass 2012).

Financial impact

As an application, this project can generate revenue through some key app monetization
strategies such as advertisements, subscriptions, sponsorship, data monetization, email
marketing and affiliate/referral marketing (Jennifier, 2016).

Other revenue stream will majorly contribute by registration fees and commission. The
company will collect a registration fee of RM100 for each worker and charge a commission
of 20% for each transaction.

The population in Kuala Lumpur is 1.79 million (DOSM 2017). If half of them was
employed, there will be 895,000 people. If there was 10% using this application at the
average transaction amount RM15, the commission will be RM268,500
(89,500*RM15*20%).

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Funding for start-up

In order to start this project “GrabKakak”, the estimated capital required which help to run
the operation of the project is RM350,000. In this RM300,000 capital, RM50,000 cost are
incurred for the purpose of research.

In addition, the native application development requires RM245,000. This include RM12,500
for wireframing which is the most important process for building up the application.
Application screening design requires RM15,000 and back-end programming needs
RM35,000. The iOS and Android native development fees would be RM55,000 each. The
application administration and development and cloud fee would be RM37,500 and
RM10,000. Lastly, the fees required in the application development would be RM12,500
each for the quality assurance and refinements iOS and Android (Bernard 2015).

Business license fee is RM5,000 and the remaining RM50,000 is used for other necessary
expenses which help to run the project smoothly.

Conclusion

According to the statistic from the Employees Provident Fund, only 18% of EPF members
have achieved the basic savings quantum according to age (Loshana 2016). Besides, majority
of Malaysians planned to have a part time job after retirement (Shaheen 2017). “GrabKakak”
application will be a golden opportunity to help Malaysian resident to earn extra income after
retirement.

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Reference

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15. Tang, R 2017, Most Malaysians Can't Afford To Retire Because They Don't Have Enough
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Appendix

Appendix 1

Appendix 2

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Appendix 3