Abstract :  This study explores the challenges faced by microentrepreneurs in Malaysia, focusing on beneficiaries of Amanah Ikhtiar Malaysia (AIM). It aims to assess the sustainability of their businesses, access to financing, and the effectiveness of AIM’s support services. Microentrepreneurs in Malaysia struggle due to financing limitations, operational constraints, and time pressures. Conventional banks often overlook these segments due to perceived risks. While microfinance institutions like AIM offer support, their reach is sometimes limited by repayment challenges and funding constraints. The study also investigates the potential integration of Islamic social finance, specifically waqf with AIM’s existing framework to strengthen support for microentrepreneurial development. A qualitative research design was adopted to gather both primary and secondary data. Primary data were collected through a semi-structured interview with a regional AIM officer, focusing on AIM’s mechanisms, challenges, and opportunities for integration with waqf. Secondary data were derived from academic journals, institutional reports, and related literature. Findings indicate that AIM provides structured microfinancing and training programs, successfully achieving a high loan repayment rate of 98%. However, challenges remain, including low entrepreneurial literacy, digital skill gaps, and overreliance on loans. AIM is addressing these through strategic partnerships and digital transformation initiatives. This study highlights the role of Islamic social finance in enhancing the long-term sustainability of microfinance and poverty eradication programs in Malaysia.