Islamic Economy in Supporting Community Resilience Through Business Assistance Programs

Authors

  • Isti Nuzulul Atiah Universitas Sultan Ageng Tirtayasa
  • Sahraman D. Hadji Latif Mindanao State University, Philippines

DOI:

https://doi.org/10.62503/gr.v3i1.27

Keywords:

Zakat Empowerment, Business Assistance, Business Growth, Social Welfare

Abstract

This study examines the impact of empowerment programs and business assistance on mustahiq welfare in Amil Zakat Institutions in Banten, with business growth as a mediating variable. A total of 160 respondents who have participated in the empowerment program were selected for analysis. This study uses the Structural Equation Modeling-Partial Least Square (SEM-PLS) approach to test the relationship between these variables. There is a significant influence between zakat empowerment on mustahiq welfare, business assistance on mustahiq welfare, and business assistance on business development, while business development on mustahiq welfare and zakat empowerment on business development do not have a significant influence. The need to increase the Zakat empowerment program is considered very important because Zakat empowerment can improve the welfare of mustahiq up to 27.1%. However, the contribution of business growth to mustahiq welfare is structurally still low. Nevertheless, increasing business growth is still considered important because it can improve mustahiq welfare.

References

Abang Abai, D. S., Awang, M. D., Mohd Yusoff, A. N., Ab. Majid, A., & Hamli, H. (2020). Bentuk Bantuan Modal Agihan Zakat Asnaf dan Pencapaian Usahawan Asnaf di Malaysia: Kajian Empirikal. Malaysian Journal of Social Sciences and Humanities (MJSSH), 5(1), 93–99. https://doi.org/10.47405/mjssh.v5i1.353

Abdul Manan, H., Muhamat, A. A., & Rosly, H. E. (2011). An appraisal by its entrepreneurial asnaf (Usahawan Asnaf) on Lembaga Zakat Selangor’s Role in ensuring business success: An empirical study on the Lembaga Zakat Selangor. 2011 IEEE Colloquium on Humanities, Science and Engineering, 580–585. https://doi.org/10.1109/CHUSER.2011.6163800

Aditya Hadid Riyadi, Abdukadir Abdullahi Sheik Abdukad, Bandar Mohammed Saif, Hawa Ahmed Takow, & Ashurov Sharofiddin. (2021). The Effect of Utilizing Zakat Fund on Financing Production to Achieving Social Welfare: in Indonesia as a Case Study. Journal of Islamic Finance, 10. https://doi.org/10.31436/jif.v10i.524

Adiwijaya, Z. A., Suprianto, E., & Rusdi, D. (2023). Mustahik Micro Business Incubation in Poverty Alleviation (pp. 64–75). https://doi.org/10.1007/978-3-031-26281-4_7

Albahri, A. S., Alnoor, A., Zaidan, A. A., Albahri, O. S., Hameed, H., Zaidan, B. B., Peh, S. S., Zain, A. B., Siraj, S. B., Alamoodi, A. H., & Yass, A. A. (2021). Based on the multi-assessment model: Towards a new context of combining the artificial neural network and structural equation modelling: A review. Chaos, Solitons & Fractals, 153, 111445. https://doi.org/10.1016/j.chaos.2021.111445

Anis, F. M., & Kassim, S. H. (2016). Effectiveness of Zakat-Based Programs on Poverty Alleviation And Economic Empowerment of Poor Women: A Case Study Of Bangladesh. Journal of Islamic Monetary Economics and Finance, 1(2), 229–258. https://doi.org/10.21098/jimf.v1i2.539

Bellera, C. A., Foster, B. J., & Hanley, J. A. (2012). Calculating Sample Size in Anthropometry. In Handbook of Anthropometry (pp. 3–27). Springer New York. https://doi.org/10.1007/978-1-4419-1788-1_1

Ben Jedidia, K., & Guerbouj, K. (2021). Effects of zakat on the economic growth in selected Islamic countries: empirical evidence. International Journal of Development Issues, 20(1), 126–142. https://doi.org/10.1108/IJDI-05-2020-0100

Brody, C., de Hoop, T., Vojtkova, M., Warnock, R., Dunbar, M., Murthy, P., & Dworkin, S. L. (2015). Economic Self‐Help group Programs for Improving Women’s Empowerment: A Systematic Review. Campbell Systematic Reviews, 11(1), 1–182. https://doi.org/10.4073/csr.2015.19

Cheung, M. W.-L. (2013). Implementing Restricted Maximum Likelihood Estimation in Structural Equation Models. Structural Equation Modeling: A Multidisciplinary Journal, 20(1), 157–167. https://doi.org/10.1080/10705511.2013.742404

Clutterbuck, D., Whitaker, C., & Lucas, M. (2016). Coaching Supervision. Routledge. https://doi.org/10.4324/9781315687070

Daniel, F., Silva, A., & Ferreira, P. (2015). Contributions to the Discussion on the Assessment of the Reliability of a Measurement Instrument. Revista de Enfermagem Referência, IV Série(7), 129–137. https://doi.org/10.12707/RIV15003

de Haan, E., & Birch, D. (2021). Supervision for organization consultants and the organizations they work with. Consulting Psychology Journal: Practice and Research, 73(3), 214–228. https://doi.org/10.1037/cpb0000204

Doran, J., McCarthy, N., & O’Connor, M. (2018). The role of entrepreneurship in stimulating economic growth in developed and developing countries. Cogent Economics & Finance, 6(1), 1442093. https://doi.org/10.1080/23322039.2018.1442093

Fikriyah, K., & Ridlwan, A. A. (2018). The Evaluation of Mustahiq Empowerment-Based Poverty Alleviation Program at Amil-Zakat Organizations. International Journal of Islamic Business and Economics (IJIBEC), 65–73. https://doi.org/10.28918/ijibec.v2i1.1263

Gunzler, D. D., & Morris, N. (2015). A tutorial on structural equation modeling for analysis of overlapping symptoms in co‐occurring conditions using MPlus. Statistics in Medicine, 34(24), 3246–3280. https://doi.org/10.1002/sim.6541

Hamadou, I., & Mamadou Salieu Jallow. (2024). The Effect of Distributed Zakat on Sustainable Economic Development in Indonesia: A VECM Approach. EkBis: Jurnal Ekonomi Dan Bisnis, 8(1), 42–58. https://doi.org/10.14421/EkBis.2024.8.1.2172

Hana Mabrukah, & Anwar Ibrahim Sadiq. (2024). Transformation of Zakat Into Rotating Business Capital: A Sustainable Economic Empowerment Solution. Journal of Lslamic Economics and Bussines Ethics, 1(3), 163–175. https://doi.org/10.24235/jiesbi.v1i3.212

Ivan Rahmat Santoso, Syahrir Mallongi, Siradjuddin, & Muhammad Basir Paly. (2024). Mediating Effects Of Islamic Business Success On Productive Zakat And Mustahiq Welfare. International Journal of Business and Society, 25(1), 111–127. https://doi.org/10.33736/ijbs.6903.2024

Jackson, D. L. (2007). The Effect of the Number of Observations per Parameter in Misspecified Confirmatory Factor Analytic Models. Structural Equation Modeling: A Multidisciplinary Journal, 14(1), 48–76. https://doi.org/10.1207/s15328007sem1401_3

Jaenudin, M., & Herianingrum, S. (2022). Zakat, Infaq, Sadaqah On Mustahik Income To Realize No Poverty In Indonesian Zakat Institution. Jurnal Ekonomi Dan Bisnis Islam (Journal of Islamic Economics and Business), 8(1), 134–152. https://doi.org/10.20473/jebis.v8i1.36360

Jongerling, J., López-Pernas, S., Saqr, M., & Vogelsmeier, L. V. D. E. (2024). Structural Equation Modeling with R for Education Scientists. In Learning Analytics Methods and Tutorials (pp. 705–721). Springer Nature Switzerland. https://doi.org/10.1007/978-3-031-54464-4_21

Mahon, D., & Norton, M. J. (2024). The Supervision of Peers. In Peer Support Work (pp. 105–114). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83753-018-220241010

Malone, H. E., Nicholl, H., & Coyne, I. (2016). Fundamentals of estimating sample size. Nurse Researcher, 23(5), 21–25. https://doi.org/10.7748/nr.23.5.21.s5

Mawardi, I., Widiastuti, T., Al Mustofa, M. U., & Hakimi, F. (2023). Analyzing the impact of productive zakat on the welfare of zakat recipients. Journal of Islamic Accounting and Business Research, 14(1), 118–140. https://doi.org/10.1108/JIABR-05-2021-0145

Mcmullan, W. E., & Long, W. A. (1987). Entrepreneurship education in the nineties. Journal of Business Venturing, 2(3), 261–275. https://doi.org/10.1016/0883-9026(87)90013-9

Mead, D. C., & Liedholm, C. (1998). The dynamics of micro and small enterprises in developing countries. World Development, 26(1), 61–74. https://doi.org/10.1016/S0305-750X(97)10010-9

Muhd Adnan, N. I., Mohd Kashim, M. I. A., Hamat, Z., Adnan, H. M., Adnan, I. M., & Md. Sham, F. (2019). The Potential For Implementing Microfinancing From The Zakat Fund In Malaysia. Humanities & Social Sciences Reviews, 7(4), 542–548. https://doi.org/10.18510/hssr.2019.7473

Mustapa, W. N. binti W., Al Mamun, A., & Ibrahim, M. D. (2018). The Effect of Economic Vulnerability on the Participation in Development Programs and the Socio-Economic Well-Being of Low-Income Households. Societies, 8(3), 60. https://doi.org/10.3390/soc8030060

Rizos, V., Behrens, A., Van der Gaast, W., Hofman, E., Ioannou, A., Kafyeke, T., Flamos, A., Rinaldi, R., Papadelis, S., Hirschnitz-Garbers, M., & Topi, C. (2016). Implementation of Circular Economy Business Models by Small and Medium-Sized Enterprises (SMEs): Barriers and Enablers. Sustainability, 8(11), 1212. https://doi.org/10.3390/su8111212

Robbana, A., Raghibi, A., & Fahm, A. O. (2023). Revisiting Socioeconomic Development Hypothesis: Does Zakat Matter for OIC Member Countries? Journal of the Knowledge Economy, 15(3), 14379–14404. https://doi.org/10.1007/s13132-023-01632-y

Santoso, I. R., Mallongi, S., Siradjuddin, & Paly, M. B. (2023). The Conceptual Framework of Mustahiq Entrepreneurs’ Welfare in Productive Zakat Empowerment (Sharia Maqasid Approach) (pp. 33–43). https://doi.org/10.1007/978-3-031-27860-0_4

Shiyuti, H. A., Zainol, F. A., & Yusoff, M. N. H. (2022). Product Distributional Mechanism as an Asnaf Entrepreneurship Support: A Case Study in Wilayah Persekutuan Kuala Lumpur, Malaysia (pp. 575–584). https://doi.org/10.1007/978-3-031-08087-6_41

Stein, C. M., Morris, N. J., & Nock, N. L. (2012). Structural Equation Modeling (pp. 495–512). https://doi.org/10.1007/978-1-61779-555-8_27

Thakkar, J. J. (2020). Procedural Steps in Structural Equation Modelling (pp. 29–34). https://doi.org/10.1007/978-981-15-3793-6_3

Wahyuningsih, I., & Nurzaman, M. S. (2020). Islamic Financial Instruments and Economic Growth: An Evidence from Indonesia. 2020 6th International Conference on Information Management (ICIM), 46–50. https://doi.org/10.1109/ICIM49319.2020.244668

Waningsih, R., Subagiyo, R., & Adlan, M. A. (2024). Realization of zakat as a form of social justice in the perspective of Muhammad Iqbal. Interdisciplinary Journal of Advanced Research and Innovation, 2(1), 64-70. https://ijari.publicascientificsolution.com/index.php/rv

Widiastuti, T., Auwalin, I., Rani, L. N., & Ubaidillah Al Mustofa, M. (2021). A mediating effect of business growth on zakat empowerment program and mustahiq’s welfare. Cogent Business & Management, 8(1). https://doi.org/10.1080/23311975.2021.1882039

Downloads

Published

2025-04-02

Issue

Vol. 3 No. 1 (2025): Government & Resilience (April 2025)

Section

Articles

License

Copyright (c) 2025 Government & Resilience

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.

All articles published in Government & Resilience (G&R) are licensed under the Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) license.

Under this license, authors retain the copyright to their work while granting Government & Resilience (G&R) the non-exclusive right to publish, distribute, and identify itself as the original publisher of the article.

The CC BY-NC-SA 4.0 license permits anyone to copy, distribute, display, perform, and adapt the published work for non-commercial purposes, provided that:

  • appropriate credit is given to the original author(s) and the journal;
  • a link to the CC BY-NC-SA 4.0 license is provided;
  • any changes made are clearly indicated; and
  • any derivative works are distributed under the same CC BY-NC-SA 4.0 license.

Commercial use of the published material requires prior permission from the copyright holder(s).

Authors are free to deposit the published version of their articles in institutional repositories, personal websites, or other non-commercial platforms, provided that proper acknowledgment is given to the original publication in Government & Resilience (G&R).

A link to the full license text should also be provided: https://creativecommons.org/licenses/by-nc-sa/4.0/