Entrepreneurship Model in Zakat Institution of Muhammadiyah

Abstract

Paying zakat is the implementation of Islamic teachings and obligations for Muslims. Zakat institutions have a strategic role in planning, implementing, and coordinating activities in collecting, distributing and utilizing zakat for the poor and those who are entitled to receive them. In Indonesia, the special role performed by zakat institutions as mandated by Law No. 23 of 2011 has contributed to the realization of community welfare and poverty reduction. Empowerment of the poor and needy through entrepreneurship program as one of the models carried out by zakat institutions in improving welfare and reducing poverty which has a long-term impact. This study aims to investigate zakat institution that has the most important role in alleviating poverty and empowering zakat recipients, especially in entrepreneurship program to empower the poor. Furthermore, this study examines the role of zakat institutions in developing program to support zakat recipients through entrepreneurship program. In Indonesia, a study of zakat distribution through entrepreneurship program, especially the zakat recipients for entrepreneurs is almost non existents. Thus, providing solutions to study questions and providing empirical evidence on the problem of the role of zakat institutions in alleviating poverty through entrepreneurship program will undoubtedly add a new dimension to the literature. This study explores selected stakeholders such as the leaders of zakat institution and manager program of entrepreneurship in implementing entrepreneurship program. The mustahik who relate the entrepreneurship program will be surveyed by questioner to obtain in-depth data. This study uses mixed method with survey and interview methods to determine the entrepreneurship program. The interview of this study explores the creation program of zakat institution and how to organize new entrepreneur through entrepreneurship program. On the other hand, to examine the welfare of mustahik will be measured by CIBEST model, its implementation, evaluation and the support of zakat institutions to the zakat recipients. Moreover, entrepreneurship program of zakat institution to support social welfare on the society by CIBEST model will be examined.