Mustahik Micro Business Incubation in Poverty Alleviation

Adiwijaya Z.A., Suprianto E., Rusdi D.

Abstract

Zakat is an Islamic economic instrument that is relevant in poverty alleviation efforts. Several studies had been conducted to suggest that zakat be distributed productively will more effective in reducing poverty. This paper aims is to propose a micro business incubation model for mustahik to be financially independent. The research approach used was qualitative descriptive with semi-structured in-depth interviews with muzakki, mustahik, and district/city BAZNAS administrators in Central Java. The results of the interview were then confirmed based on agency theory and sharia enterprise theory. This research has identified the things needed in business incubation and proposed a series of microenterprise incubation models for mustahik. This research contributes to the novelty of the micro business incubation model which includes the provision of capital assistance, management skills training, strengthening innovation, and assistance from the zakat institution. The zakat institution provides capital assistance from zakat funds to mustahik which can be used to start a business, then zakat institution provides management skills training that helps mustahik in determining market segments, and improving product quality through innovation so that the business run by mustahik can develop. Assistance is also needed so that mustahik can optimize capital assistance that has been given.

Journal
Lecture Notes on Data Engineering and Communications Technologies
Page Range
64-75
Volume
161
Issue Number
Publication date
2023
Total citations

References 10

Cited By 0

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