Assessing the Impact of Zakat on Developing New Entrepreneurs in Medan, Sumatera Utara, Indonesia

Authors

  • Ahmad Riyansyah Faculty of Business and Management, Universiti Sultan Zainal Abidin, Terengganu, Malaysia
  • Mohd Shukri Jusoh Faculty of Business and Management, Universiti Sultan Zainal Abidin, Terengganu, Malaysia
  • Yaza Azzahara Ulyana Faculty of Law and International Relations, Universiti Sultan Zainal Abidin, Terengganu, Malaysia

DOI:

https://doi.org/10.56225/ijassh.v2i2.122

Keywords:

empowerment, micro, small and medium enterprises, productive Zakat, LAZISMU program

Abstract

This paper discusses the implementing fund empowerment productive Zakat through the social microfinance program conducted by LAZISMU. Also, assess the impact of MSMEs empowerment by LAZSIMU in the city of Medan and find out what are the supporting factors and obstacles in the implementation of MSME empowerment carried out by LAZISMU. This study is designed using a qualitative approach through content analysis. Observations, interviews and documentation studies are techniques that researchers use to collect data and then interpret accordingly with the phenomena and problems found in the field during carry out research. This study found that Zakat's productive through the social microfinance program is important in helping business actors who experience difficulties developing their businesses. Also, this program has a significant impact on increasing business outcomes. The existence of a network of work, increase in family income and increased knowledge, skills, as well as independence. In addition, this study indicates that the factors supporting this program include human resources. There is a good organizational structure in Muhammadiyah. While the inhibiting factors and obstacles faced include the mentality of some members, there is no professional amil in the LAZISMU, so assistance has not been maximized, and there is no special organization in this program.

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Published

2023-05-31

How to Cite

Riyansyah, A., Jusoh, M. S., & Ulyana, Y. A. (2023). Assessing the Impact of Zakat on Developing New Entrepreneurs in Medan, Sumatera Utara, Indonesia. International Journal of Advances in Social Sciences and Humanities, 2(2), 95–105. https://doi.org/10.56225/ijassh.v2i2.122

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