Productive zakat, business growth, and mustahiq welfare: Evidence from BAZNAS Malang

Purpose – This study examines the effects of productive zakat and business assistance on mustahiq welfare, with business growth as a mediating variable.Methodology – This study adopts a quantitative explanatory approach using Partial Least Squares Structural Equation Modeling (SEM-PLS). Data were collected from 100 beneficiaries of the productive zakat program administered by BAZNAS Malang City via structured questionnaires, supplemented by in-depth interviews to provide deeper analytical insights.Findings – The results indicate that business assistance positively and significantly affects business growth, whereas productive zakat does not. However, productive zakat has a significant indirect effect on mustahiq welfare through the growth of businesses. In contrast, business assistance does not have a significant indirect effect on welfare via business growth. These findings underscore the pivotal role of business growth as a mediating mechanism linking productive zakat to improved mustahiq welfare.Implications – This study suggests that the effectiveness of mustahiq empowerment programs largely depends on the quality and sustainability of business mentoring, as well as the alignment of zakat-based support with beneficiaries’ actual needs. Accordingly, zakat management institutions are encouraged to strengthen continuous guidance, monitoring, and evaluation mechanisms to ensure sustainable welfare outcomes.Originality – This study contributes to the zakat literature by empirically integrating productive zakat, business assistance, and business growth within a mediation framework, providing new insights into how zakat-based empowerment programs can effectively enhance mustahiq welfare.

Authors

Publication Details

Journal
Review of Islamic Social Finance and Entrepreneurship
Published
2026-04-06
DOI
https://doi.org/10.20885/risfe.vol5.iss1.art8
Primary Topic
Islamic Finance and Banking Studies
Type
article
Field-Weighted Citation Impact
0.00
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article

Productive zakat, business growth, and mustahiq welfare: Evidence from BAZNAS Malang

Ahmad Djalaluddin, Nur Asnawi, Siswanto Siswanto, Yousf Faraj Hadiri et al.
Review of Islamic Social Finance and Entrepreneurship
Islamic Finance and Banking Studies
article

Productive zakat, business growth, and mustahiq welfare: Evidence from BAZNAS Malang

Ahmad Djalaluddin, Nur Asnawi, Siswanto Siswanto, Yousf Faraj Hadiri, Akhir Saleh Pulungan, Lempang Hasibuan
article en

Abstract

Purpose – This study examines the effects of productive zakat and business assistance on mustahiq welfare, with business growth as a mediating variable.Methodology – This study adopts a quantitative explanatory approach using Partial Least Squares Structural Equation Modeling (SEM-PLS). Data were collected from 100 beneficiaries of the productive zakat program administered by BAZNAS Malang City via structured questionnaires, supplemented by in-depth interviews to provide deeper analytical insights.Findings – The results indicate that business assistance positively and significantly affects business growth, whereas productive zakat does not. However, productive zakat has a significant indirect effect on mustahiq welfare through the growth of businesses. In contrast, business assistance does not have a significant indirect effect on welfare via business growth. These findings underscore the pivotal role of business growth as a mediating mechanism linking productive zakat to improved mustahiq welfare.Implications – This study suggests that the effectiveness of mustahiq empowerment programs largely depends on the quality and sustainability of business mentoring, as well as the alignment of zakat-based support with beneficiaries’ actual needs. Accordingly, zakat management institutions are encouraged to strengthen continuous guidance, monitoring, and evaluation mechanisms to ensure sustainable welfare outcomes.Originality – This study contributes to the zakat literature by empirically integrating productive zakat, business assistance, and business growth within a mediation framework, providing new insights into how zakat-based empowerment programs can effectively enhance mustahiq welfare.

Review of Islamic Social Finance and Entrepreneurship
Openalex Percentile: Top 26%
Islamic Finance and Banking Studies
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