Asnaf Entrepreneurial Scheme : Evidence From Lembaga Zakat Negeri Kedah

Abstract

Islam is a universal and comprehensive religion that penetrates and shapes every facet of the everyday life. Zakat is one of the five Islamic pillars that is compulsory for those who have excessive of property. The concept of zakat is to purify the property of the wealthy by giving to the poor and needy. Zakat institution play an important role as the organization to collect and manage the distribution to the right recipients. Over the year, there is an increase of zakat collection which enable zakat authorities to diversified the distribution with several means. Among them, is asnaf entrepreneurial scheme which provided financial and non-financial assistance to the poor to start a business or to assist the asnaf ongoing business. This paper discusses the concept of asnaf entrepreneurial scheme given by Lembaga Zakat Negeri Kedah as one of the way to eliminate poverty through business. Based on the quantitative survey involving 60 respondents, it has found that there is positive relationship between asnaf entrepreneurial scheme and poverty elimination. The findings of this study are aimed to fill the literature gaps and strengthen the current policy of Lembaga Zakat Negeri Kedah specifically on asnaf entrepreneurial scheme.