Imron Mawardi and Tika Widiastuti, - and Muhammad Ubaidillah Al Mustofa, - and Fifi Hakim (2023) Analyzing the impact of productive zakat on the welfare of zakat recipient. Journal of IslamiAccounting and Business Research, 14 (1). pp. 118-140. ISSN 1759-0825

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Abstract

Purpose – This study aims to investigate the effects of zakat and business assistance on the growth and well-being of mustahiqs (zakat recipients). This study also investigates the impact of macroeconomic variables on the welfare of mutahiqs. Design/methodology/approach – The partial least squares-structural equation modelling method is used in this quantitative study, examining data from 137 mustahiqs. The data was collected from seven zakat institutions, which run effective zakat programmes to empower mustahiqs. Findings – Zakat empowerment programmes and business assistantships positively impact the growth of mustahiqs’ businesses, beneficial to their well-being. Nevertheless, their well-being is unaffected by the proxy of the macroeconomy. Originality/value – This study adds to the zakat literature by identifying the relationship between zakat, business growth, macroeconomic conditions and mustahiq welfare. Accordingly, this approach was made by combining primary and secondary data. This research offers a unique measure of welfare based on the concept of the Islamic objectives (Maqasid al-Shariah).

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