Productive Zakat Model for Micro-Entrepreneur Development

• Main Authors: Efri Syamsul, Bahri, Mohd Mizan, Mohammad Aslam, Hendro, Wibowo
• Format: Conference or Workshop Item
• Language: English
• Published: 2019
• Online Access: http://ur.aeu.edu.my/977/1/ProductiveZakatModelforMicro-EntrepreneurDevelopment-EfriSyamsulBahri.pdf; http://ur.aeu.edu.my/977/; https://www.researchgate.net/profile/Efri-Syamsul-Bahri/publication/346612941_Productive_Zakat_Model_for_Micro-Entrepreneur_Development/links/5fd2b8ae92851c00f8661e80/Productive-Zakat-Model-for-Micro-Entrepreneur-Development.pdf
• Institution: Asia e University

There are 56.4 million micro and small businesses (MSEs) in Indonesia, as many as 30% have accessed financing. Meanwhile, as many as 70% do not have access to bank financing. It is because micro-entrepreneurs have no guarantees, and there is a perception of a high-risk profile. As a result, micro-entrepreneurs' conditions have not changed, they are still in poor condition, and their businesses are underdeveloped. Productive Zakat becomes a solution for the development of micro-entrepreneurs. This study describes how the micro-entrepreneurship development model is implemented by the National Board Zakat (BAZNAS). This research is a qualitative method and using a descriptive approach and a literature study. The results showed that the BAZNAS micro-entrepreneurship development model was carried out through the BAZNAS Institute of Mustahiq Economic Empowerment (LPEM) with programs namely: Mustahiq entrepreneurs and Z-Mart. Productive Zakat is distributed to micro-entrepreneurs in capital, training, assistance, and product development. Productive Zakat for microentrepreneurs' development can increase the income of micro-entrepreneurs by 48.49% from IDR 4,404,911.00 before receiving zakat funds to IDR 6,540,746.00.