Search results

The purpose of this paper is to evaluate and measure the business model of the state welfare organization in assisting and ensuring the business success of its entrepreneurs or zakat recipients.

A survey was employed to obtain feedback from the recipients of zakat for small businesses under the scheme of entrepreneurial asnaf zakat.

The respondents, in general, agree that the variables for the study – capital, courses or training and knowledge or know‐how – are important to them in helping the zakat recipients to succeed in their businesses, which then translates into a better standard of living. Positive correlation is shown for the three variables in determining the success rate of the programme and regression analysis shows that only capital and an asnaf's knowledge is significant in determining an asnaf's entrepreneurial success, which leaves training as insignificant.

This paper explores the other side of zakat distribution, in the sense that many studies focus on the distribution of zakat collection from the zakat payers to the asnaf whereby the distinction of this study is that it evaluates the asnaf that want to transform their condition through the entrepreneurial asnaf programme. This is rarely investigated due to the lack of a similar programme in other places, even within Malaysia. The limitation for the study is in terms of solid support from the respective parties. This includes the management of Lembaga Zakat Selangor, due to the bureaucratic process, albeit understandable, to protect certain confidential information, and also unfavourable respondents' attitude when being questioned, which is a normal phenomenon in survey study.

This paper provides insights into the implementation of entrepreneurial zakat, which can be emulated by other zakat collection agencies to develop similar or better innovative programmes for the benefit of the community.

This paper is unique since the feedback is given by the entrepreneurs who receive financial assistance from the state zakat organization in Malaysia, which means the information is derived from the original source. The findings provide good information for practitioners as well as for academicians and students.

This study aims to examine the factors influencing the intention to comply with business zakat in a developing country.

A sample of 700 small and medium scale businessmen was drawn using the random sampling method. A total of 524 responses was analyzed using the partial least square structural equation modeling (PLS-SEM) technique.

Results indicate attitudes toward zakat evasion, attitudes toward moral reasoning, peer influence, zakat knowledge, zakat distribution and perceived zakat board capital positively and significantly influence intention to pay zakat. Interestingly, the enforcement of zakat law was found to significantly influence intention but in a negative direction.

Accordingly, it was recommended for policymakers to pay more attention to policy formulation to the identified factors in line with the results so that zakat collection could be increased.

The study contributes generally to zakat compliance knowledge and specifically to zakat on business wealth in Muslim majority states in developing countries that are fighting against poverty. The PLS-SEM method and its application in the Islamic field study, especially on zakat payment has a limited discussion in previous studies, which is a unique contribution of this study.

The purpose of this study is to analyse potential models of Islamic crowdfunding as an alternative financing option for micro-entrepreneurs in Malaysia. While crowdfunding has gained traction as an alternative funding source for businesses, it is unclear how far this concept can benefit a group of micro-entrepreneurs in Malaysia.

This study uses a qualitative research approach by using data collected through semi-structured interviews with several experts and practitioners in crowdfunding, Shariah and entrepreneurship. Prior to discussing the facets of the findings, the data were analysed based on a thematic approach.

The findings reveal that while previous works of related literature suggest crowdfunding as a viable alternative financing option for entrepreneurs and their businesses, in reality, its practical implementation presents challenges. Numerous micro-entrepreneurs need more training in the areas of management and marketing. Such concerns raise questions about their ability to attract potential project backers. With the proper selection of Shariah contracts and several approaches to risk management, Islamic crowdfunding can potentially become an alternative funding source for microbusinesses.

Given the exploratory nature of this study regarding the applicability of Islamic crowdfunding as an alternative fund for micro-entrepreneurs, its findings may not fully encompass Malaysia’s context because of the limited number of participants involved.

The findings of this study offer guidelines on how to implement Islamic crowdfunding for micro-entrepreneurs. Consequently, Islamic crowdfunding has the potential to alleviate the government’s burden of providing funds for micro-enterprises and enhance their skills and mentality to be more independent, creative and able to promote their products.

While Islamic crowdfunding can be an alternative opportunity for business enterprises and community-based projects, it promotes the spirit of cooperation and collaboration within society.

Although Islamic crowdfunding is a topic that has been discussed previously, empirical investigations in this area remain scarce, mainly through qualitative approaches. Distinguishing from prior literature, this study analyses several potential models of Islamic crowdfunding from the perspectives of experts, practitioners and related agencies for micro-entrepreneurs. Moreover, this study bridges insights from related literature so that they offer practical applications to support micro-entrepreneurs in Malaysia.

The purpose of the paper was to examine factors influencing business zakah compliance behavior.

The theory of reasoned action (TRA) was adopted to investigate whether attitude, subjective norm and intention were the determinants of zakah compliance behavior based on questionnaire survey of 227 active businessmen in one district in Malaysia.

Results indicate intention to be a significant predictor for zakah compliance behavior. Intention is further found to be influenced by both attitude and subjective norm, and it mediates the relationship between both factors with business zakah compliance behavior.

As attitude, subjective norm and intention are found to influence business zakah compliance behavior, zakah institutions should give serious attention on these factors to improve their zakah collection in the future.

The study supports the argument that in a loosely regulated environment like zakah, the TRA can still effectively explain the behavior of zakah compliance.