Zakat institutions in Malaysia oversee the obligatory Islamic donations, which have improved the poor and needy‘s socio-economic conditions through innovative programs. These income-generating programs, which zakat recipients participate in, have enabled people to improve their livelihoods. These programs allow zakat recipients to become business owners with the ultimate goal of becoming zakat payers themselves. However, despite all assistance extended, the number of entrepreneurial failures among asnaf entrepreneurs is quite alarmingly high. Inadvertently, the fulfillment of Maqasid Syariah, the goals or objectives of Islamic law, is still lacking since identifying the rightful recipients from potential recipients is quite challenging. A successful entrepreneur requires motivation, so recipients should be motivated. If the best recipients are not identified, then there must be flaws in the system, so pinpointing those areas for improvement becomes critical. Not only that, once motivated recipients are found, which of these recipients will follow Maqasid Syariah to become zakat payers? In view of these issues, this paper proposes three main pre-selection areas for asnaf entrepreneurs, including a look at the three participants, namely, the zakat recipients, the zakat institutions, and the zakat payers. A thorough understanding of these participants, for future successful zakat process implementation, is crucial. However, the main areas discussed are based on a participant‘s pre-selection which (1) measures their entrepreneurial intent, or motivation, by using an entrepreneurship index to identify true potential asnaf entrepreneurs, (2) a proposal to appoint village headmen who collaborate with local imams to verify potential recipients for better zakat management, and (3) an allocation of capital for targeted Millennial Asnaf who would use the money to initiate their entrepreneurial ventures on a small scale so they can increase the success of the Islamic zakat system.
Islamic products and services have high contribution to the economy recently. This contribution has inspired Malaysia to set its mission to become a global halal hub. Halal hub generally relies on the level of awareness among Muslim particularly the authority in understanding the main concept of Shariah-compliant products and services. This paper will principally discuss on Shariah-compliant hotel industry by elaborating the important criteria from the perspectives of the authority in achieving the Shariah-Compliant hotel status in Malaysia. Focusing on qualitative method, this study used in-depth and open-ended interviews with the authorities namely JAKIM and JAHEAIK. Interviews were recorded, transcribed and analyzed. It is found that JAKIM and JAHEAIK stated very limited criteria to specify a Shariah-compliant hotel. However, through interviews, JAKIM and JAHEAIK have provided some insights on how to fully achieve the Shariah-compliant attributes. This paper is important as it can significantly provide much needed feedback from the authority perspectives for the use of interested industry players.
Mudharabah is a profit-sharing partnership agreement of a business venture to carry out economic activities. Despite its potential socioeconomic benefits to the parties involved and to the society, the application of mudharabah is limited to engineered Islamic finance products which transform the conventional financial products into Shari'ah-compliant ones. We argue that, in order to realise the mudharabah true potentials, among others, the mudharabah contract needs to be revived. The purpose of this study is to propose a framework in reviving the mudharabah contract between the sahibul mal (capital provider/investor) and the mudharib (entrepreneur). The research methods used in this study are library research and content analysis. As a result, agency theory is recognised to be very relevant to the mudharabah contract. To revive the mudharabah contract, tahaluf concept (Islamic treaty with compliance with Shari'ah) is identified as the most suitable concept to be adopted. This proposed framework serves as guidance in formulating the data collection strategy from different perspectives i.e. from sahibul mal, mudharib, Shari'ah advisors and academicians.
The unprecedented changes in the financial market have put a great pressure on financial service providers. As more competitive financial products and services emerge in the market, financial institutions have no choice, but to enhance their competitive advantages. Thus, consumer behavior in purchasing products and services must really be understood by the service providers. Unfortunately, the literature on customer satisfaction and the purchase decision is hardly seen in the finance industry. This paper originally develops a model of the relationship between consumer satisfaction and purchase decision in the finance industry focusing on personal finance. The mediating role of customer satisfaction in the purchase decision is emphasized in this research model. This model had been used to focus purchase decisions by adapted Theory Planned Behaviour (TPB). A clear understanding of the relationship attitude, subjective norms and perceived behavioral control towards purchase behavior had found by previous research. But lack of studies focused on the small-medium enterprises (SME’s) that nowadays have become a platform for the economy in Malaysia. Hence, this conceptual model had focused on SME’s behavior in selecting personal finance. The conceptual model offers insight into the general nature of a recovery that specifically to the understanding of SME’s behavior as well as in purchase personal loan.
This study assesses the spiritual’s post-covid Asnaf entrepreneur’s toward zakat on business. It indicated the new insight of Asnaf entrepreneur’s spirituality after covid. After participating in the AEP, Asnaf became the zakat payer and directly will be give the positive effect to zakat collection. However, many small businesses, especially business from Asnaf entrepreneurs are financially fragile because of Covid- 19 challenges. To meet the challenges posed by the Covid-19, the Asnaf entrepreneurs had to react in agile and decisive ways by relating the spirituality toward business and able to maintain as the zakat payer soon. This involves conducting an after-action review in spiritual by lessons learned from the pandemic and enhance the business value. Therefore, in this paper, we explore the Spiritual’s Asnaf entrepreneurs toward zakat on business after facing the Covid-19. The analysis was performed to examine the reliability and validity of the measurement, and the structural equation modelling techniques (SEM). Spiritual among Asnaf entrepreneur’s toward zakat on business after Covid-19. Hence, the study provides an insight to zakat institution that the Covid-19 seek out the opportunities emerging in the recovery and stability return by move to digitalization business. Keywords: asnaf, entrepreneur, spiritual quotient, post covid
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