Asnaf’s Microbusiness Ability for Survival In Internal And External Environment Perspective: A PLS-SEM Approach

Abstract

AbstractThe State Islamic Religious Council and the state zakat center have provided assistance to asnafs who wish to venture into business with the business zakat approach. It provides a supply of capital to them in starting and running a business. However, not many researchs see the extent of its effectiveness from the internal and external aspects of the asnaf entrepreneur. Therefore, this study would like to examine the extent to which the main driving factors of asnaf entrepreneurs conduct their business. These factors are important to study and identify the level of readiness of asnaf entrepreneurs and to know the extent of their competitiveness in ensuring their survival rate. The research methodology implemented here is quantitative exploratory research. For data collection, the field-based research was conducted by distributing 52 questionnaires to asnaf micro businesses in Pahang, Malaysia. Meanwhile, the data analysis method uses Partial Least Squares-Structural Equation Modeling (PLS-SEM) statistical technique using SmartPLS 3.0 software. The study found that the competitiveness rate and resilience of asnaf entrepreneurs are at a satisfactory level with high internal impact. This suggests that internal and external influences, such as subjective perceptions and norms, play an important role in ensuring their competitive survival. In addition, this study also suggests some improvements that need to be considered to help asnaf entrepreneurs in their efforts to grow their business in becoming successful entrepreneurs and contribute in the future.KeywordsAsnaf entrepreneursAssistancePLS-SEMRural societyZakat