Abstract
This study explores the effect of zakat and non-zakat empowerment programs on the beneficiaries' welfare (mustahiq). This study focuses on the influence of the intervening variable, namely the mustahiq businesses' growth on mustahiq welfare. This study also examines the role of demographic characteristics, such as age, gender, and years of education on mustahiq business growth. This study employs the Partial Least Square-Structural Equation Model (PLS-SEM) using data from 100 respondents who received empowerment assistance from three different zakat institutions. The sample of mustahiq was selected from three zakat institutions to provide a diversity of respondents. The results indicate that zakat and non-zakat programs' empowerment through business growth has significantly affected mustahiq welfare. With these results, both zakat and non-zakat productive programs should be more developed to assist the community businesses' growth optimally. Previous studies measure the welfare of mustahiq with material aspects. In this study, the indicator of welfare is based on maqashid sharia, which includes the protection of Ad-Din (religion), An-Nafs (Soul), Al-Aql (intellect), Al-Nasl (descendant), and Al-Maal (wealth). Examining the impact of two variables, namely productive empowerment programs through zakat and non-zakat, on mustahiq business growth and welfare is the novelty of this study.
Highlights
Zakat is an Islamic economic instrument to guarantee equal distribution of wealth, improve the quality of life for mustahiq, and reduce income inequality
This study explores the effect of zakat and non-zakat empowerment programs on the beneficiaries' welfare
The indicator of welfare is based on maqashid sharia, which includes the protection of Ad-Din, An-Nafs (Soul), Al-Aql, Al-Nasl, and Al-Maal
Summary
Zakat is an Islamic economic instrument to guarantee equal distribution of wealth, improve the quality of life for mustahiq, and reduce income inequality. Zakat's dimension is a personal and social spiritual dimension, but there is an economic dimension whose primary purpose is to improve the welfare of mustahiq and to fulfill both the short- and long-term basic needs. Productive zakat is a type of zakat fund provided to mustahiq, which is not spent directly for the consumption of specific needs but is developed and used to support mustahiq business. Productive Zakat is an effort to increase mustahiq income to transform to become muzakki in the long term. Productive Zakat is implemented by providing trading tools as work equipment for those with healthy bodies, business capital for those with business skills, training and skill acquisition, and other support that is considered relevant to the recipient's physical condition and ability (Abdullah et al, 2015; Ahmed & Wahab, 2015)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
