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Entrepreneurship Model in Zakat Institution of Muhammadiyah Case Study in Lazismu Yogyakarta Province

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Entrepreneurship Model in Zakat Institution of
Muhammadiyah
Case Study in Lazismu Yogyakarta Province
Sutrisno1,* Razali Haron2 Syarif As’ad3
1 Department of Sharia Economics Faculty of Islamic Studies, Universitas Muhammadiyah Yogyakarta, Yogyakarta,
Indonesia
2 Institute of Islamic Banking and Finance (IIiBF), International Islamic University Malaysia, Malaysia
3 Department of Sharia Economics Faculty of Islamic Studies, Universitas Muhammadiyah Yogyakarta, Yogyakarta,
Indonesia
* Email: sutrysno@umy.ac.id
ABSTRACT
This study aimed to explore in-depth the role of zakat institutions in poverty alleviation by distributing zakat funds in
various programs, particularly through economic empowerment. This research is focused on Entrepreneurship
Economic Development in Lazismu, Yogyakarta Province. Furthermore, this paper examined how to develop a zakat
distribution model through entrepreneurship models and increase the welfare of zakat recipients. This research uses
qualitative analysis to explore the role of the Zakat Institution in entrepreneurship development. Meanwhile, to
determine the development of the material and spiritual well-being of zakat recipients was by using the CIBEST
model developed by Beik & Arsyianti, 2015. The result of this research is that the entrepreneurship development
carried out by Lazismu DIY is channeled by providing business capital to zakat recipients with various types of
businesses. Furthermore, the provision of business capital that is carried out has a positive impact on improving the
business and skills of zakat recipients. In addition to this, after measuring using the CIBEST model, it is concluded
that zakat recipients with the entrepreneurial model developed by Lazismu DIY have increased materially and
spiritually.
Keywords: Entrepreneurship Model, Zakat Institution, Welfare, Zakat Recipient
1. INTRODUCTION
Zakat has a vital, strategic, and decisive role in terms
of Islamic teachings and the development of the welfare
of the people. From the dimensions of Islamic teachings,
the command of zakat must be paid by every Muslim as
a form of obligation worship. Also, the majority of
Indonesia's population is Muslim, where in general,
Indonesia has a great potential in obtaining zakat in the
modern economy [1].
This is where zakat institutions have an essential role
both in collecting and distributing zakat funds to zakat
recipients. In the collection, it is necessary to do a lot of
innovation and pick-up to zakat payers considering the
enormous potential cannot be exploited. The latest data
for 2019, the potential for zakat in Indonesia reached
233.8 trillion, while new achievements amounted to 6.2
trillion. Meanwhile, on the side of zakat funds
distribution carried out by the majority of zakat
institution, it is still in the form of a consumptive
program. As mandated by the Law on Zakat Number 23
of 2011, the distribution of zakat funds is carried out
consumptively and productively to reduce the number of
unemployed and poverty in Indonesia, which has not
been successfully resolved until now [2].
The report from the Indonesian National Statistics
Agency that the number of unemployed people in
February 2019 reached 6.8 million people, while those
who worked part-time or only 15 hours per week reached
10.76 million people while those who were uncertain
sometimes worked and at certain times did not work up
to 9.53 million people so that in 2019 the number of
people who need work and have not worked will reach
27.9 million people.
BPS reported that the number of poor people in
Indonesia in March 2019 reached 25.14 million people.
Based on the domicile, it is categorized into two parts,
Advances in Social Science, Education and Humanities Research, volume 518
Proceedings of the 4th International Conference on Sustainable Innovation 2020–Social,
Humanity, and Education (ICoSIHESS 2020)
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consisting of 39.46 percent of the poor living in urban
areas and 60.54 percent in rural areas[3].
The comparison between the poor and the needy
population is 25.14 million against 27.9 million people.
If calculated, the results show that between the number
of poor people and the population who need work, the
dominant population is those who need work. It can be
assumed that between the poor and those who need
work, both need to get the right to work to improve their
livelihoods and welfare. On the other hand, according to
the Islamic approach in general, these two categories
need to get support, assistance, and compensation as a
recipient of zakat because they belong to the needy and
poor.
The needy and poor are categorized as zakat
recipients who get top priority in the eight groups
entitled to receive zakat. The virtue can be seen in the
order of zakat recipients placed in the first mention. This
can be seen in the Holy Qur’an in Surah At-Taubah
verse 60, Zakah expenditures are only for the poor and
for the needy and for those employed to collect [zakah]
and for bringing hearts together [for Islam] and for
freeing captives [or slaves] and for those in debt and for
the cause of Allah and for the [stranded] traveler - an
obligation [imposed] by Allah. And Allah is Knowing
and Wise”. It can be concluded that those who are
entitled to receive zakat first before the other groups are
the needy and poor.
Zakat institutions in Indonesia, both government and
private zakat institutions, are still minimal in distributing
zakat funds for productive business activities to zakat
recipients. This can be seen from the data on zakat
recipients nationally that only 5% received financial
assistance for economic independence in 2018. The total
number of zakat beneficiaries reached 11,352,942
people, while zakat beneficiaries in the field of economic
development only reached 475,578 people from all over
Indonesia.
A number of studies on entrepreneurial
empowerment for zakat recipients have shown
significant results. Recipients of zakat, infaq, and
sadaqah increase their welfare after obtaining capital
from zakat institutions, as stated in research that the
zakat program has been effective in increasing the
mustahik household welfare index in material and
spiritual aspects. The welfare index has increased by
40%, and the average income per month has increased
by 100%. In addition, the levels of material poverty,
spiritual poverty, and absolute poverty have also
decreased. Another study conducted by BAZNAS in
2018 using the Had Kifayah (HK) standard poverty
index measurement model showed that productive zakat
programs in 26 provinces in Indonesia were able to
reduce the number of poor people [4].
Zakat institutions in Indonesia have carried out the
empowerment of mustahik through many programs to
reduce poverty, including through entrepreneurship. This
paper will specifically discuss the empowerment of zakat
recipients with an entrepreneurial model. This
exploratory research looks in depth at the reality of zakat
recipient empowerment carried out by zakat institutions,
especially Lazismu DIY, in poverty alleviation. This
analysis is fundamental as an effort to find the role of
zakat institutions in poverty alleviation through
entrepreneurship. On the other hand, it promotes the role
of zakat institutions at the local and international levels.
The qualitative approach was adapted from Case Study
Research [5]. The use of the term entrepreneurship is
used in this study as a part of the distribution of zakat
funds to zakat recipients for the development of their
own businesses. Another term with the same meaning,
the distribution of zakat funds, is used in the form of
business and development to produce more significant
benefits [6]. Funds received are not spent on
consumptive purposes but are developed and used to
support business operations to meet their daily needs on
an ongoing basis.
This research is organized into five main sections.
The introductory section includes a discussion on the
role of zakat institutions in Indonesia and the role of
entrepreneurs in poverty alleviation. Section 2 provides a
literature review on entrepreneurship programs at zakat
institutions. The research methods of this paper will be in
section 3. An overview of entrepreneurial practices that
have been implemented by Lazismu DIY and explain the
problems and solutions of zakat recipient entrepreneurs
are presented in section 4, conclusions, and
recommendations for further research in section 5.
2. LITERATURE REVIEW
The word entrepreneurship comes from French and
German entrepreneur unternehmen. Both verbs are
translated to "do." It can be interpreted that
entrepreneurs try to do what no one else does. The
entrepreneur "is at once one of the most interesting and
one of the most difficult to understand in portraying a
character and is the subject of economic analysis."
Entrepreneurship's economic theory is divided into three
major Austrian, Chicago and German intellectual
traditions. Austrian proponents like Kirzner (1973;
1979) advocated the use of opportunities by
entrepreneurs. In the Chicago School (1921 Knight), the
importance of taking risks and addressing uncertainty
has been emphasized. The role of a new combination of
creative work was interpreted by German schools,
particularly known through the works of Schumpeter[7].
A brief definition of entrepreneurship is someone who
exploits opportunities by recombining existing resources
in an activity through permanent uncertainty.
Islamic entrepreneurship is a composition of two
different things, Islam and business. Islam is defined as
the faith in a single god and Muhammad (saw) is Allah's
messengers. In a popular hadith told by al-Buchari,
angel Gabriel asked the prophet about Islam, Iman and
Ihsan, and explained that Islam is a testimony not to
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have God other than Allah, that Muhammad is His
messenger, that Muhammad is His messenger, that He
prays, pays the Zakat, that in the Month of Ramadan he
fasts. Faith belongs to Allah, His Angels, His books,
The Last Day, His Messengers, and the fate of God.
Ihsan said that he worshiped Allah as though he saw
Him, or even if he saw Him not, He (Allah) saw you.
Enterprise in Islam is linked to faith and submission to
God [8].
Simply put, undertakings are based on three crucial
pillars according to Islam. The first pillar is to take
advantage of opportunities, based on the definition of
entrepreneurship. The second pillar is based on socio-
economic or ethics, in which all Muslim activities are
driven by a set of religious principles, values and
teachings. The third pillar is the spiritual-religious
relation and one to God, in which the ultimate purpose
is to receive the grace of God. These pillars are
interconnected, connected and reinforced. In addition,
the sources of the Qur'an and institutions and
interpretation processes are particularly relevant to these
pillars. In Islam, businesses thus have their own way of
understanding it. It needs to be understood and analyzed
holistically related to entrepreneurship, the values of
Islamic teachings, the obligations that must be carried
out in Islam, the influence of certain institutions in
interpreting the holy book as a source, and an ecosystem
that provides religious interpretation [9].
Enterprise plays a vital role in economic, social,
growth and development technology. Businessmen are
socio-economic change mediators in many ways. The
social role has the potential to increase as the value of
entrepreneurship increases. In addition to profit
generation, entrepreneurship is the principal way to
accumulate wealth and help others to develop
themselves. Entrepreneurship also promotes investment,
discovery, innovation and the development of new
companies. The proposed approaches can therefore be
combined to achieve balance and highest results with
the BOP (pyramid bottom), SE (social entrepreneurship)
and corporate social responsibility (CSR) operations.
Such integration requires synergy and a major change in
entrepreneurship and research [10].
The distribution of productive zakat provided by
zakat institutions can increase household mustahik
income. The program has also succeeded in reducing
poverty by increasing income by 147.14%. The program
has also succeeded in reducing the material's index,
spiritual and absolute poverty for mustahik. On the other
hand, the welfare index increased by 63.7 percent. The
productive zakat fund distribution program has the
potential to reduce material and spiritual poverty [11].
Another study conducted in Selangor (Malaysia)
found that the mustahik entrepreneurship program was
very beneficial and had an impact on the mustahik
because it would improve the mustahik's economy while
increasing their income. In addition, zakat institutions
also create entrepreneurship development programs to
support the economic businesses of zakat recipients
[12].
BAZNAS [13] reports the significant effect of zakat
funds on mustahik income in his study of mustahik in
Surakarta, Indonesia. The higher the funds disbursed to
zakat recipients, the income for mustahik will increase.
In addition, the results of other research in Balikpapan
Indonesia also show that venture capital has a
significant effect on the welfare of the people who
receive zakat in Balikpapan City.
Nasrullah [14] studied models of community
economic empowerment through the management of
zakat and alms at the Great Mosque of Syarif
Hidayatullah (East Java) and Mayes, Setiawan, Isbah,
& Zuryani [14] about productive roles of zakat to help
the poor in Rokan Hulu Regency, Sumatra, Indonesia.
These studies conclude that the zakat funds collected
have an impact on poverty reduction through productive
zakat programs. Zakat can also be an effective financial
instrument for the poor, and a productive model of
distribution of zakat and alms helps in empowering
mustahik.
Studies in different places, namely in Bandung and
Yogyakarta, which were carried out using quantitative
models, concluded that the provision of capital through
productive zakat affects business income and can
increase the profitability of mustahik [15]; [16]. Also,
research in Yogyakarta concluded that the distribution
of productive zakat funds has a significant effect on the
growth of micro-businesses and the welfare of mustahik.
Besides, the capital given to mustahik can increase
micro-businesses by absorbing labor.
Puspitasari et al. [17] reported that the distribution of
zakat funds through takaful institutions could help
provide welfare to poor farmers in the context of
poverty alleviation. This was also reported by (Pailis,
Burhan, Multifiah, & Ashar) [18] in their study in Riau,
Indonesia, that productive zakat is able to provide
welfare for the community. Providing capital to
productive zakat recipients at BAZNAS Riau Indonesia
can directly increase the income of poor families.
Furthermore, Siregar [19] reports that the problem of
zakat funds faced by BAZNAS in North Sumatra,
Indonesia, is still lacking in terms of organizational
structure in accordance with PP No. 14 (2014). In
addition, the government's lack of attention to the
development of zakat and low budget support from the
government due to the lack of professional human
resources, especially in the administrative and financial
sectors, also affects the impact of zakat. Likewise,
Darmawati & Nawarini [20] raised the issue of
increasing the potential for raising zakat funds and
problems in Banyumas and Purbalingga Indonesia,
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where it was concluded that the achievement of zakat
collection by zakat institutions was still minimal
compared to the potential available there. In addition,
the problem faced is the lack of public awareness in
distributing zakat funds through formal zakat.
Furthermore, the main problem faced by zakat
institutions is poor funding, management, and
operational management.
Priyono [21] suggests that the implementation of
zakat management as organizational management must
prioritize the interests of mustahik. Furthermore, the
management of zakat and alms funds must be
adequately managed by zakat institutions to improve the
welfare of zakat recipients, especially in empowering
the poor. In addition, the use of productive zakat funds
to empower poor people who receive zakat is a form of
implementation of law number 8 of 2016 and law
number 23 of 2011 concerning zakat management.
Rianto [22] also examines the minimal distribution of
zakat funds to poor people with disabilities who receive
special zakat funds to support their business. For this
reason, in conclusion, the distribution of zakat funds to
empowering entrepreneurs with disabilities needs to be
increased.
Other research is related to zakat management using
regression analysis of the motivation factor to pay zakat
by zakat payers in Kolaka, Sulawesi Indonesia
(Zakariah et al., [23]). It is concluded that the
satisfaction of zakat payers in paying zakat occupies the
highest factor that affects the motivation to pay zakat.
For that, zakat institutions must have credibility, be
responsible for services, and be trusted to build
satisfaction for zakat givers. In addition, Amalia [22]
also concluded that the management of zakat and alms
should be for economic empowerment and assistance to
the poor to increase entrepreneurial capacity.
Research using the zakat and shadaqah instrument
optimization model for mustaik economic goals
through entrepreneurship programs at the Qaryah
Thayyibah Purwokerto Indonesia zakat institution
(Rahayu, [24]) has succeeded in empowering mustahik
through indicators of success in the form of increasing
income, increasing welfare, and increasing productive
assets, building independence, increasing ethos
independence and spiritual mustahik work. On the other
hand, (Arif [25]) also succeeded in researching
community economic empowerment through zakat to
increase human resource limitations and the
management of zakat institutions.
Other research related to zakat distribution
conducted by (Haque, Rifzaldi Nasri, Nuraini, & Yusuf
[26]) measures zakat distribution in zakat institutions
using economic welfare variables and concludes that
zakat distribution using the economic empowerment
model can be used to measure the success of zakat
distribution by zakat institution. In addition, research
conducted by Nasir [27] concluded that zakat
institutions need to channel zakat effectively by
increasing a good understanding of zakat to zakat
recipients, the level of independence of zakat recipients,
improving good service and strategic positions.
The results of research by Wahid, Bakar, & Ahmad
[28] in Selangor (Malaysia) concluded that the image of
the zakat institution has the greatest influence on the
intention and desire of an entrepreneur to pay zakat. In
addition, zakat institutions need to improve the
understanding and attitudes of Muslim entrepreneurs in
paying zakat so that the zakat acquisition can increase
with the aim of increasing the benefits of zakat to zakat
recipients. Another study by Widiastuti [29]) in Sabah,
Malaysia found that there is a greater prospect than the
challenges faced. Among the internal factors that
provide opportunities for entrepreneurial activities on
the island of Mantanani are the wealth of natural
resources, society, culture, and natural skills of the local
community.
On the other hand, external factors such as regular
visits by students and non-governmental organizations
are seen as opportunities for the community through
entrepreneurial activities. In addition, the potential and
opportunities that can contribute to the development of
small businesses by local communities such as
homestays, retail, and local food processing such as
anchovy, fish crackers, village tour guides, restaurants,
and event managers can improve the economy of zakat
recipients.
Research (Sukesti, [30] regarding the role of
entrepreneurship in sustainable development concludes
that sustainable entrepreneurship can make an important
contribution to help preserve the natural environment
and society. In addition, research on role models and
entrepreneurial identity to improve performance in
entrepreneurship (Efrata & Maichal [31]) also conclude
that role models have a significant influence on
entrepreneurial identity, which has a significant effect
on entrepreneurial performance. Furthermore, these
findings prove the importance of role models in
improving entrepreneurial performance. In addition, the
existence of an entrepreneurial identity that mediates the
relationship between role models and entrepreneurial
performance shows the importance of entrepreneurs in
choosing their role models. Young entrepreneurs may
consider choosing entrepreneurial role models who
share the same characteristics to improve their business.
Further research by Isada [32] concluded that social
entrepreneurial activities have a positive relationship as
a solution to social or environmental problems.
Furthermore, organizational capabilities, dynamic
capabilities, and cooperation within the organization are
the main factors in entrepreneurial success. On the other
hand, Nizar [33] concluded that community economic
empowerment through productive zakat is felt to be
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used more by zakat recipients because it can meet the
needs of poor households in a sustainable manner. In
addition, economic empowerment activities in
entrepreneurship require regular assistance from zakat
managers to improve the quality of businesses run by
zakat recipients.
3. METHODOLOGY
The method used in this research was qualitative
methods and CIBEST model as developed by Beik &
Arsyianti, [34]. Moreover, (1) Beik & Arsyianti's
development, [34]. Furthermore, in order to identify the
households to include in quadrant I, a (1) welfare index
(W) is used. Homes are said to be prosperous in this
quadrant. You can obtain the value of W using the
following formula:
W = w / N
W: index of welfare: 0≤W≤1
W: Number of affluent families
(The wealth of materials and spirituals)
N: number of households observed
(2) The material poverty (Pm) index is used to
determine if the home is in Quadrant II, or in the
category which is significantly poor. The value can be
obtained using the following formula of the Material
Poverty index:
Pm = Mp / N
Pm: Poverty Index Materials: 0≤Pm≤1
Mp: The number of people who are materially poor,
spiritually rich
N: (households monitored) the population
(3) The Spiritual Poverty Index (Ps) is used to determine
the spiritually deprived category of a household or the
quadrant III (spiritually poor) and the value of Ps using
the formula:
Ps= Sp / N
Ps: Index of spiritual poverty:0≤ Ps≤ 1
Sp: number of people who are spiritually poor but
material
Adequate housing
N: Observed households' total population
(4) Comprehensive poverty index
A household is included either in quadrants IV or in the
absolute category of poverty in an Absolute Poverty
Index (Pa). Pa is achieved by following formula: The
value of Pa
Pa = Ap/N
Pa: Absolute poverty index: 0 ≤ Pa ≤ 1
Ap: The number of households in poor spiritually and
materiality
N: Observed household (total population)
(+)
Spiritual
Poverty
Line3
(-)
(-) Material Poverty Line (+)
Figure 1 CIBEST Quadrant
Source: Beik and Arsyianti (2016)
Table 1. Spiritual Indicators
Varia
bles
Likert Scale
Spr
itu
al
Sta
nda
rd
1
2
4
5
Prayer
Bloc
king
othe
rs to
pray
Against
the
concept
of
prayer
Perfor
ming
obliga
tory
prayer
but
not in
a
congr
egatio
n
Perfor
ming
obliga
tory
prayer
s in a
congr
egatio
n and
perfor
ming
sunna
h
prayer
Th
e
ave
rag
e
sco
re
for
the
spi
ritu
all
y
po
or
ho
use
hol
d is
Fastin
g
Bloc
king
othe
rs to
unde
rtak
e
fasti
ng
Against
the
concept
of
fasting
Perfor
ming
only
obliga
tory
fastin
g
Perfor
ming
obliga
tory
fastin
g and
sunna
h
fastin
g
Zakat
and
Infak
Bloc
king
othe
rs to
pay
Against
the
concept
of
zakat
Payin
g
zakat
al-fitr
and
Payin
g
zakat
al-fitr,
zakat
Material
poverty
(Quadrant
II)
Prosperous
(Quadrant
I)
Absolute
poverty
(Quadrant
IV)
Spiritual
poverty
(Quadrant
III)
Advances in Social Science, Education and Humanities Research, volume 518
5
zaka
t and
infa
k
and
infak
least
once
in a
year
zakat
al-
maal
al-
maal,
and
infak
equ
al
to
3
(S
V=
3)
House
hold
Envir
onme
nt
Forb
id
ibaa
dah
Against
implem
entatio
n of
ibaada
h
Cons
ider
ibaad
ah as
priva
te
matte
r for
hous
ehold
mem
ber
Suppo
rt
execut
ion of
ibaad
ah
Creati
ng an
enviro
nment
which
obliga
tes
execut
ion of
ibaad
ah
Gover
nment
Policy
Envir
onme
nt
Forb
id
ibaa
dah
Against
implem
entatio
n of
ibaadah
Cons
ider
ibaad
ah as
priva
te
matte
r
Suppo
rt
execut
ion of
ibaada
h
Creati
ng
enviro
nment
which
obliga
tes
execut
ion of
ibaada
h
Source: Beik and Arsyianti (2016)
This research belongs to field research by collecting
data directly from the parties involved. The subject of
this research was the Lazismu DIY, while the object
was had of Lazismu DIY and zakat recipient of
entrepreneurship program in Yogyakarta Province.
Sources of data in this study were primary data
(observation and interviews) and secondary data (master
plan reports, tables, graphics). Data collection
techniques were through observation, interviews, and
documentation study.
In this study, testing was carried out with two
analyzes by using qualitative descriptive analysis
methods through collecting data obtained from
observation, interviews, and documentation. Data
analysis in this study was carried out through three
activities: data reduction, data presentation, and drawing
conclusions or verification Huberman [35].
In addition, the data used for this research model
was also taken from various sources, \ncluding related
journals, related books, magazines, print, and digital
media advertisements, official broadcasts, scientific
articles, program proposals, operating formats, official
material summaries, radio documents, television,
government records, surveys, etc. Baxter & Jack, [36].
Furthermore, the analysis procedure includes
identification, sorting, assessment, and synthesis of data
in research. In particular, this paper classifies research
findings from various sources relevant to the
implementation of business articles, including those
from business journals. After being described, the text
will be interpreted to get a clearer understanding of the
findings, and the conclusions will be drawn in the article
of Neuman [37].
4. RESULT AND ANALYSIS
The economic empowerment of the poor by Lazismu
DIY focuses on two main programs, namely business
capital assistance for economically weak families and
Independent Ortom Business Capital Assistance at the
Regional Level of D.I. Yogyakarta. Business capital
assistance for economically weak families targeting
poor families who receive zakat for productive
businesses in Sleman, Gunung Kidul, Kulon Progo, and
Bantul regencies totaling ten families each receive 2.5
million rupiahs. This productive business has several
targets, including the availability of access to capital for
poor families, helping empower weak economies,
increasing income and welfare, and alleviating poverty.
The second program is the orthom self-supporting
business capital assistance at the D.I.Yogyakarta region
with the target of zakat recipients in Sleman, Gunung
Kidul, Kulon Progo, and Bantul Regencies as many as
seven families each receiving Rp. 2.500,000 with the
target of motivating the orthomon organization (under
the coordination of Muhammadiyah) in order to develop
efforts to increase the source of organization da'wah
funds carried out and the creation of autonomous
organizations that are economically independent. Types
of businesses that are given assistance to empower the
poor through entrepreneurship consist of breeders, waste
managers, grocery stores, selling salted eggs, and
masseuses.
4.1. Analysis of the Shift in Mustahik
Households Before and After the ZIS Fund
Based on an analysis of the mustahiks’ household
condition before and after receiving the financial aid
from Lazismu DIY, using the CIBEST model, there
were shifts in the proportion of mustahik households
within each CIBEST quadrant. These shifts can be seen
in Table 2 below
Table 2. The shifting of mustahik households
The number of mustahik households
Quadrant
Before
After
Quadrant 1
(Prosperous)
25
50
Quadrant II
(Materially Poor)
39
14
Quadrant III
(Spiritually Poor)
1
0
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Quadrant IV
(Absolutely Poor) 1 0
Source: Primary Data
1
0
Source: Primary Data 2020 (processed)
The changes in household numbers in each quadrant
are shown in Table 2. The number of Mustahik
households classified as prosperous households after the
financial support of ZIS increased in Quadrant I. Before
the ZIS, there were 25 households in Mustahik. The
figure grew to 50 households following the ZIS
financial assistance.
In quadrant II, the number of Mustahik households,
which are classified as substantially poor, decreased.
Thus, before financial aid fell to 4 households after ZIS
financial assistance, 39 Mustahik households were
classified as spiritually rich but materially poor. This
decrease in the number of households in the Mustahik
classified as materially poor shows that ZIS funding
from.
The number of Mostahik homes classified as
spiritually poor in quadrant III declined. One household
of this type called Mustahik, was financially capable but
not spiritual, which fell to nil after financial aid from
ZIS. This shows that ZIS financial assistance can also
be used to fix the moustahiker's spiritual side.
Quadrant IV is the last quadrant for households
classified as being in absolute poverty and unable to
meet their spiritual or material requirements. Before the
financial assistance of ZIS, only one household was
classified as such and later dropped to nil. This means,
therefore that financial support can help eradicate
absolute poverty. In general, ZIS funds can increase
prosperity and reduce the number of households in
material, spirit and absolutely poor.
4.2. Analysis of the Islamic Poverty Index
The CIBEST is the Islamic poverty index of the
welfare index, the index of material poverty, and the
indice of spiritual poverty and absolute poverty. The
CIBEST analysis has already determined the number of
households in each category. The results for the
CIBEST quadrant will be obtained for the calculation of
the Islamic poverty index. The calculations of the
Islamic poverty index are shown:
Table 3. Islamic Poverty Index
Source: Primary Data 2020 (processed)
The index value also increased up to 34 percent for
mustahik household welfare. Those results show that
ZIS funds could be allocated and empowered to
improve the welfare index for Mustahik households.
The welfare index describes the number of Mustahik
households classified as wealthy families. The average
score of Mustaahik households increased from 1.42 in
Table 4. Table 4 shows. Mustahik's average revenue
also rose by Rp.300 292.
4.3. Analysis of the Material Poverty Index of
Mustahik Households
The index of material poverty describes the number
of households classified as material poor but spiritually
rich. According to table 4, the average spiritual score of
Mustahik families increased to 1.54. The average
income was also substantially improved, up to Rp. 469
244. Material poverty index value decreased by 30%.
These results show that ZIS funds can be distributed and
empowered to reduce the material poverty indices.
The spiritual index of poverty describes the number
and spiritual poor, yet materially rich, Mustahik
households. According to table 4, both the average
mustahik spiritual value and the average Mustahik
N
o
Povert
y
Index
Before the existence
of ZIS fund
After the existence
of ZIS fund
Spiri
tual
Scor
e
Index
value
Spiri
tual
Scor
e
Inco
me
(Rp)
Inde
x
valu
e
1
Welfa
re
Index
3.42
0.55
4.82
1
876
553
0.89
2
Materi
al
Povert
y
Index
3.21
0.53
4.75
1
711
223
0.23
3
Spiritu
al
Povert
y
Indeks
3
0.01
0
0
0
4
Absol
ute
Povert
y
Index
3
0.01
0
0
0
Advances in Social Science, Education and Humanities Research, volume 518
7
income decreased to zero. Spiritual poverty also
decreased its index value to one percent. These results
show that ZIS funds can be allocated and empowered to
reduce the spiritual poverty index.
The absolute poverty index describes the number of
households in Mostahik classified as material and
spiritually poor. On the basis of Table 4, the spiritual
average and the average income of the Mustahik
households fell to nil. The value of the poverty index
has also fallen to 1%. The results show that ZIS funding
distribution and empowerment can reduce the absolute
poverty index.
5. CONCLUSION
The empowerment of the poor who receive zakat
through the entrepreneurship program at Lazismu DIY
is carried out through two main programs, business
capital assistance for economically weak families and
Independent Business Capital Assistance for Ortom.
The two programs go through several stages, including
an administrative selection of prospective zakat
recipients, survey stages, and realization of the
provision of venture capital funds.
The empowerment carried out by Lazismu D.I.
Yogyakarta is proven to be able to improve material and
spiritual welfare. The increase in material welfare is
obtained through the income from the business activities
that are carried out, while the increase in spiritual
welfare obtained from the increase in daily ibadah
activities carried out by the recipients of zakat increases
after receiving capital assistance.
In general, the implementation of entrepreneurship
models carried out by the DIY people runs smoothly
even though there are still several obstacles faced
including, the amount of funds is still limited, business
development is not evenly distributed even though it is
given the same capital, and the turnover of each
managed business has ups and downs. The activity of
providing capital assistance to communities such as
zakat recipients with an entrepreneurial development
model can have a broader impact when it can be
transformed to zakat recipients in all official zakat
institutions of Muhammadiyah and other institutions.
Recommendations for further research related to the
topic of empowerment with an entrepreneurial model
can be carried out by taking other Zakat Instiotution
objects with the amount of funds distributed and the
number of zakat recipients more and a broader scope to
get a more macro conclusion. In addition, for zakat
institutions, empowerment programs with an
entrepreneurial model can be carried out to reduce
poverty by increasing the distributed funds and the
number of zakat recipients.
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