Turnitin - The Distribution of Zakat Fund to the Poor Entrepreneurs Using Micro Finance.

Hafas Furqani, 2025068001 (2021) Turnitin - The Distribution of Zakat Fund to the Poor Entrepreneurs Using Micro Finance. International Journal of Academic Research inBusiness and Social Sciences, 11 (2): 2. pp. 231-240. ISSN 2222-6990

[thumbnail of zakat-fund-to-the-poor-entrepreneurs-using-micro-finance3_1.pdf.pdf] Text
zakat-fund-to-the-poor-entrepreneurs-using-micro-finance3_1.pdf.pdf - Published Version

Download (2MB)

Abstract

Microfinance is one of the financial instruments for small and medium entrepreneurs to run a business. The constrains to obtain a capital often involving underprivileged entrepreneurs because it is difficult to get a fund from the financial institutions. Currently in Malaysia,
Amanah Ikhtiar Malaysia (AIM) and TEKUN National are among the institutions that offer the native to obtain the business capital. Otherwise, the State Zakat Institution provides an assistance as a business capital by mean of “one-off” which does not require the borrowers
to make a repayment at the end of the day. From a Muslim entrepreneur's perspective, micro finance that offered is consisting element of riba and it is prohibited in Islam. For that reason, seem that the financial assistance provided by zakat institutions is seen as unproductive and elective. Thus, micro-finance through zakat funds is an alternative proposition for unprivileged entrepreneurs. This article aims to analyze the readiness of zakat institutions in
Malaysia to apply micro finance from zakat funds. The study is done using the case study method by conducting a semi-structured interview with 5 micro finance officers and 5 zakat officers from Zakat institutions. This study found that there is a tendency to apply micro finance from the zakat fund. In other words, zakat institutions in Malaysia are ready to implement zakat distribution by mean of micro finance. Hopefully, this study will be served as a reference for zakat institutions especially in Malaysia to practice micro finance from the zakat funds.

Item Type: Article
Uncontrolled Keywords: Zakat , Zakat Institutions, Micro Credit, underprivileged Entrepreneurs , Productive Zakat
Subjects: 300 Sociology and Anthropology (Sosiologi dan Antropologi) > 330 Economics (Ilmu Ekonomi)
300 Sociology and Anthropology (Sosiologi dan Antropologi) > 330 Economics (Ilmu Ekonomi) > 330.01 Filsafat dan Teori
Divisions: Program Pascasarjana > S2 Ekonomi Syariah
Depositing User: Hafas Furqani
Date Deposited: 20 Feb 2023 03:22
Last Modified: 20 Feb 2023 03:22
URI: https://repository.ar-raniry.ac.id/id/eprint/26934

Actions (login required)

View Item
View Item