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The Role of Lazismu on Entrepreneurship Empowerment Program for the Poor

  • IIUM Institute of Islamic Banking and Finance (IIiBF) & University of Malaya Centre for Continuous Education (UMCCed)
The Role of Lazismu on Entrepreneurship Empowerment
Program for the Poor
Sutrisno1,*, Razali Haron2, Rozikan3
1Department Islamic Economics Faculty of Islamic Studies, Universitas Muhammadiyah Yogyakarta Indonesia
2IIUM institute of Islamic Banking and Finance (IIiBF) International Islamic University of Malaysia
3Department Islamic Economics Faculty of Islamic Studies, Universitas Muhammadiyah Yogyakarta Indonesia
*Corresponding author. Email:
Zakat institutions play a strategic role in the management of zakat funds and other social funds in order to carry out the law's
mandate and alleviate poverty through various programs. Meanwhile, zakat institutions are responsible for the majority of
poverty alleviation through consumptive programs. Based on the results of the Lazismu National Zakat Institute's management,
it has obtained the largest zakat fund acquisition achievement nationally in 2020. This study aims to explore in depth how zakat
programs are created, managed, and implemented for economic empowerment of the poor in Lazismu by interviewing, which
has been successful in creating and implementing economic empowerment programs for zakat recipients throughout Indonesia.
This study took a qualitative approach, with data collected through interviews. The results Lazismu's role through the poor
community empowerment program is carried out in several stages, starting from the preparation of the strategic plan before the
program is implemented, determining the type of program, implementation, evaluation and mentoring. The program of Lazismu
is in the form of rising farmers, MSMEs, livestock, capital assistance for Islamic microfinance institutions in accordance with
the theory of raising the spirit of entrepreneurship and smart goals. Overall economic empowerment program carried out by
Lazismu, in general, it went well and smoothly according to the planned target. In addition, the economic empowerment program
carried out by Lazismu has succeeded in converting zakat recipients into zakat providers by 50% of the total economic
empowerment programs carried out.
Keywords: The role of Lazismu, entrepreneurship empowerment programs, zakat recipient
Zakat institutions have a strategic and decisive role from
the dimensions of Islamic teachings and the development of
the welfare of the people. In terms of Islamic teachings, zakat
is an obligation that must be fulfilled by every Muslim as a
form of obligatory worship. In addition to this, the majority of
the Indonesian population is Muslim, where in general,
Indonesia has great potential in obtaining zakat and
developing empowerment programs [1].
In addition to this, zakat institutions have an important
role related to the collection and distribution of zakat funds to
zakat recipients. In collecting zakat institutions, it is required
to create innovative and effective programs to obtain zakat
funds from zakat payers considering the enormous potential
that cannot be utilized. The latest data in 2019 the potential
for zakat in Indonesia reached 233.8 trillion while the new
achievement was 6.2 trillion. Meanwhile, the majority of
zakat institutions in Indonesia make programs, and the
distribution of zakat funds is carried out in the form of
consumptive programs instead of economic empowerment
programs. Meanwhile, 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
unemployment and poverty in Indonesia, which has not yet
been successfully completed [2].
According to a report from the Indonesian National
Statistics Agency, the number of unemployed people in
February 2020 reached 7.9 million people, while those who
worked part-time or only 15 hours per week reached 10.76
million people, while those who were uncertain of working
sometimes worked and at certain times did not work reached
9.53 million people so that if you added it up in 2020, the
population who need work and have not worked would reach
28.9 million people [3].
In addition, BPS reported that the number of poor people
in Indonesia in March 2020 reached 25.14 million people.
Based on the place of domicile, it is categorized into two
parts, consisting of 39.46 percent of the poor living in urban
areas and 60.54 percent in rural areas. The comparison of
poverty indicators by place of residence classified by BPS
shows a significant difference between the number of poor
people living in urban and rural areas where the majority of
the poor live in rural areas. Research conducted by
Salahuddin El Ayyubi and Henni Eka Saputri in 2020 shows
that the majority of zakat institutions make programs,
management, and distribution of zakat in the form of
consumption. A total of 14.55 percent of the people living in
DIY are categorized as low-income families (Badan Pusat
Statistik (BPS), 2020)
The management of zakat as regulated in the zakat law
number 23 of 2011 states that in the utilization of zakat, it can
Advances in Social Science, Education and Humanities Research, volume 626
International Conference on Sustainable Innovation Track Humanities Education and
Social Sciences (ICSIHESS 2021)
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be allocated for productive business activities in the context
of handling the poor and improving the economic quality of
the people. It was further explained that the distribution of
zakat with the model of economic empowerment carried out
by zakat institutions could improve the family economy and
have great potential to change the status of zakat recipients
into zakat givers. This can happen because of the sustainable
increase in income obtained from businesses run by zakat
recipients [4].
Lazismu is a zakat institution that received the best award
from MUI in managing and empowering zakat to improve
economic quality through entrepreneurship programs.
Lazismu’s program was developed in 6 special programs
through the Economics Program in the agricultural sector in
the form of Tani Bangkit, which was devoted to farmers
through a farmer empowerment program with an integrated
and environmentally friendly agricultural system. This
economic empowerment program for the poor is in
collaboration with the Community Empowerment Council
(MPM), the central leadership of Muhammadiyah in the form
of training, mentoring, and providing fertilizer. Second is the
empowerment of farmworkers and fishermen (BRUTAL).
The implementation of the empowerment program for
workers, farmers, and fishermen is also in collaboration with
MPM PP Muhammadiyah, which specifically has the aim of
increasing the capacity/economic level of the poor who work
as laborers, farmers, and fishermen daily [5].
Another program to improve the economy of the poor was
developed by Lazismu Pusat in the form of farmer
empowerment with the aim of increasing the quality of
livestock prices and having competitiveness. This
empowerment is specifically for zakat recipients who are
interested and have the will to become entrepreneurs in the
form of animal husbandry. This program is also in
collaboration with MPM PP Muhammadiyah so that it can run
optimally. In addition, Lazismu also developed an economic
empowerment program for poor families through the
Aisyiyah Family Economic Business Development Program
(BUEKA). This program is specifically intended for mothers
who receive zakat who are interested in entrepreneurship in
order to help improve the family economy.
Lazismu has developed another productive zakat
distribution in the form of a program for Micro, Small, and
Medium Enterprises (MSMEs) by providing business capital
owned by zakat recipients that are already running and
strengthening businesses with partnership schemes.
Regarding the distribution of empowerment for the poor, they
are grouped into four categories: MSMEs in the informal
sector for street vendors, Micro MSMEs as zakat recipients
who have a business and interest in the craft sector, Dynamic
MSMEs as recipients of zakat who carry out entrepreneurial
activities by establishing cooperation ( accept sub-contract
work) and exports and MSMEs that are already running
smoothly with better management (Fast Moving Enterprise)
which is ready to transform into a bigger business. This grant
is realized for groups with a model of providing business
capital and business strengthening with a partnership scheme
with a group of 10 people. Another economic empowerment
of the poor is realized by Lazismu through the Mualaf
empowerment program. This empowerment is specifically for
converts to Islam by means of training, mentoring, and capital
aimed at improving the family economy [6].
Until now, studies related to the creation, management,
and implementation of economic empowerment programs in
zakat institutions are still rarely carried out, especially
exploring the role of zakat institutions in managing economic
empowerment programs through programs that have been run
by Lazismu Pusat. The importance of the role of zakat
institutions in poverty alleviation through economic
empowerment programs is an issue that needs to be raised in
a study, so we intend to complete research related to this topic.
Explicitly, this study aims to investigate the creation,
management, and implementation of the economic
empowerment program carried out by Lazismu Pusat, which
has been implemented and has succeeded in alleviating
This research is organized into five main parts. The
introductory section includes a discussion of the role of zakat
institutions in Indonesia and the role of entrepreneurs in
poverty alleviation. Section 2 provides an overview of the
literature on entrepreneurship programs in zakat institutions
and Lazismu. The research method of this paper will be in
section 3. An overview of the entrepreneurial empowerment
practices that have been carried out by Lazismu as well as
explaining the problems and solutions of zakat recipient
entrepreneurs, are presented in section 4, conclusions, and
recommendations for further research in section 5.
Several studies related to this research, such as by [8],
concluded that the management and distribution of zakat need
new breakthroughs in order to improve the benefits and
quality of zakat institutions for zakat recipients and givers.
This is done by distributing zakat through productive
economic empowerment programs so that it can help alleviate
poverty through economic empowerment of the poor to
improve the standard of living of zakat recipients. In addition,
the empowerment program can also increase income and, at a
later stage, can change the status of zakat recipients into zakat
givers. Another study conducted by the 2019 Baznas Strategic
Studies Center to evaluate the distribution of productive zakat
in the Java and Sumatra regions found that improving the
welfare of zakat recipients can be carried out by zakat
managers by making distribution programs with an economic
empowerment model [2].
Until now, studies on making economic empowerment
programs in zakat institutions, especially those related to the
creation, management, and realization models of economic
empowerment programs at the Central Muhammadiyah Zakat
Institutions, are still very rarely carried out. In fact, Lazismu
has been considered successful in creating, managing, and
realizing an economic empowerment program for the poor
recipients of zakat with the zakat model to improve the
economy. This is in line with the Zakat Law number 23 of
2011 that in order to alleviate poverty, it is necessary to utilize
productive zakat, especially those that have an economic
impact with an economic empowerment program model for
zakat recipients [9].
Advances in Social Science, Education and Humanities Research, volume 626
In line with the concept of zakat in Islam, apart from being
obligatory, the purpose of zakat itself is to support and
balance the social order in society as stated in (QS. At-Taubah
verse 103). [10] revealed that the practice of managing zakat
as a support for the economy and independence of the poor
has actually been practiced since the time of the Prophet
Muhammad and in several Muslim countries until now.
Results of Research conducted by [11] The benefits of zakat
in the field of economic empowerment only reach 5% of the
benefits of zakat compared to the benefits of all other
programs nationally. Research conducted by [12], zakat
management through productive economic empowerment
program activities can improve the welfare of zakat
The main factors that support the success of the economic
empowerment program are good management and
commitment between zakat managers and zakat recipients in
running their business. In addition to the commitment from
both parties, another supporting factor is the routine guidance
carried out by zakat institutions to recipients of economic
empowerment programs. Another study conducted by [13]
entitled the effect of productive zakat and interest in
entrepreneurship on increasing the income of the poor at the
Gorontalo City Baznas (2018) concluded that productive
zakat and interest in entrepreneurship simultaneously have a
positive and significant effect on increasing the income of the
poor at Gorontalo city Baznas.
Research conducted by [14] at the Institute of Amil Zakat
Yatim Mandiri Surabaya City with a quantitative model
concluded that the management of productive zakat has a
strong and significant relationship to improving the welfare
of mustahik in Surabaya city. Since all previous studies were
conducted with a quantitative approach, this study was
conducted with a qualitative approach with the aim of
complementing and strengthening the previous studies. This
study will also provide conclusions related to the creation,
management, and realization of economic empowerment
programs from two sides, from the point of view of program
development, program management, and realization of
empowerment programs for zakat recipients in Central
2.1. Concept and Effectiveness of the Program
Programming plays a role in determining the future and
continuity of an organization, both government and private
organizations. The preparation of useful programs does not
only apply specifically but can be useful in general. That is, it
can be felt by all levels of society or stakeholders. The
benefits of programming can be realized after the
implementation of a program. The results that have been
achieved are seen because, with a structured program, all
possibilities to implement or get results as expected will be
possible to determine and achieve. The program will also
become a reference for an organization's data to carry out
activities and become a goal to be achieved. Besides that, the
program will become a target of an activity. Thus a program
is very important in an organization [15].
If the stages of program preparation can be carried out,
then all the activities carried out can be detailed in such a way
that in their implementation, there is little possibility to run
outside the scope of the program. If this is implemented, it can
determine the required budget. The tools desired or used by
the people who will implement it, as well as regarding the
time and place of a program that has been prepared or
determined. To be able to determine what is needed, it is
necessary to use resources, as stated by Terry in [16] as
follows: "The program can be defined as a comprehensive
plan that includes the use of various resources for the future
in the form an integrated pattern that establishes a sequence
of actions that need to be carried out as well as time schedules
for each of these actions in order to achieve the stated goals.
Furthermore,[15] states: "The program is a broad plan that
contains the use of different resources for the future in a
unified pattern and determines a description of the activities
and time plans required by each source, to achieve the stated
goals”. So what is meant by the program is a broad plan that
contains the use of various resources for the future in the form
of a pattern that will determine a sequence of activities with
time so that the expected goals can be achieved.
Furthermore, [17]states that a program that can be
considered good has an innovative element (renewal), the
existence of a new initiative approach is indeed
developmental in nature, but often a program is more
desirable because of the inter-institutional nature of its
activities. Programs are also used as problem-solving tools.
Meanwhile, (Conchada, & Edralin, 2017) states that:
"Programming is an effort to arrange a series of activities to
be carried out, which is also a feature of planning. But
program preparation is not planning, because the series of
activities that are arranged in program preparation can be
carried out not from the initial stage.” From the definitions of
the experts above, it can be concluded that what is meant by
program preparation is a comprehensive plan whose contents
contain a plan of activities that must be carried out, what
resources must be used and what is needed, by whom will be
implemented, and when the plan will be carried out and where
the plan will be implemented, all of which are given a serial
number of activities according to a predetermined time, this
is carried out as an effort to achieve the goals or objectives
that have been set.
Furthermore, McDavid & Hawthorn in [16] defines
"programs as meaning relationships that are designed and
implemented purposively. A program can be understood as a
group of activities intended to achieve one or related
objectives. Janiati in Nuraida (2020) defines the program as
everything that someone does with the hope that it will bring
results or influence. Thus the program can be interpreted as a
series of carefully planned activities and, in their
implementation, take place in a continuous process, and occur
in an organization that involves many people[19].
In this sense, there are four main elements to be
categorized as a program, (1), Carefully planned or designed
activities. It is not the origin of the design but the activity plan
that is prepared with intelligent and careful thinking. (2) The
activity takes place continuously from one activity to another.
In other words, there is a link between the activities before
and after activities. (3) The activity takes place in an
organization, both formal and non-formal organizations, not
individual activities. (4) The activity in its implementation
Advances in Social Science, Education and Humanities Research, volume 626
involves many people, not activities carried out by individuals
without any relation to the activities of other people. The
program is the first element that must exist in order to achieve
an activity.
In the program, several aspects are made. In each
program, the objectives of the activities to be achieved, the
activities taken to achieve the objectives, the rules that must
be adhered to and the procedures to be followed, the estimated
budget needed, and the implementation strategy must be
explained. Through the program, all forms of plans will be
more organized and easier to operate. This is in accordance
with the understanding of the program described. Thus, what
is meant by program preparation is an effort to determine a
series of activities to be carried out, including the resources to
be used, so that the planned activities achieve the stated goals.
Measures of Program Effectiveness From the notion of
program effectiveness, it can be concluded that program
effectiveness is a way to measure the extent to which the
program is running in order to achieve predetermined goals.
2.2. Program Effectiveness
The definition of program effectiveness can be formulated
as the level of realization of targets that indicate the extent to
which program targets have been set [17]. Based on several
definitions of effectiveness above, it can be understood that
effectiveness is a benchmark to compare the process carried
out with the goals and objectives achieved. A program is said
to be effective if the efforts or actions taken are in accordance
with the expected results. Effectiveness is used as a
benchmark to compare the plans and processes carried out
with the results achieved.
Aspects of effectiveness based on the opinion of [20],
effectiveness can be explained that the effectiveness of a
program can be seen from the following aspects: (1) Aspects
of the task or function of an institution are said to be effective
if they carry out their duties or functions, as well as a learning
program will be effective if its duties and functions can be
carried out properly and students learn well, (2) Aspects of
the plan or program, what is meant by the plan or program
here is a programmed learning plan, if all plans can be
implemented, then the plan or program is said to be effective;
(3) Aspects of provisions and regulations, the effectiveness of
a program can also be seen from the functioning or not of the
rules that have been made in order to maintain the ongoing
process of its activities. This aspect includes rules both related
to teachers and related to students. If these rules are
implemented properly, it means that the provisions or rules
have been effective; and (4) Aspects of goals or ideal
conditions, an activity program is said to be effective from the
point of view of results if the goals or ideal conditions of the
program can be achieved. Assessment of this aspect can be
seen from the students achievements.
According to [21], “program effectiveness is an activity
whose implementation shows the accuracy between the
desired expectations and the results achieved which are
shown by the accuracy of expectations, policies, and results
achieved”. Program effectiveness is aimed at the correct use
of all resources in the context of implementing a program to
improve the welfare of society in general, as well as the
effectiveness of empowerment programs. According to [22],
the effectiveness of the program can be seen as follows: (1)
Accuracy of program targets is the extent to which program
participants are in line with predetermined targets. (2)
Program socialization is the ability of program
implementation in conducting program socialization so that
information regarding program implementation can be
conveyed to the public. (3) The purpose of the program is the
ability of respondents to know the purpose of implementing
the program. This proves that the socialization carried out
regarding the objectives of a program can be understood by
the community. (4) Program monitoring is activities carried
out during or after the implementation of the program as a
form of attention to program participants.
Meanwhile, the measurement of program effectiveness,
according to [23], is as follows: (1) Program Understanding,
which is to find out how far the community can understand
the program. Through the program, all forms of plans will be
more organized and easier to operate. By paying attention to
the target group, a program can be said to be effective or not.
(2) Right on target, which is how the program is designed by
the manager for the target group or the extent to which an
institution has succeeded in realizing the targets to be
achieved. (3) On-time, that is, for the use of time in the
implementation of the program, it must be in accordance with
a predetermined schedule. With the right time, the program
will run effectively. (4) Achieving the goal is to find out
whether the objectives of the establishment of the program
have been achieved or not. (5) Real Change is to find out how
the real change before and after the program. So that it can be
measured by the extent to which the program provides an
effect or impact as well as real change for the community.
Therefore, based on several measures of program
effectiveness, it can be concluded that the measure of program
effectiveness is a way to measure the extent to which the
program is running in order to achieve predetermined goals.
2.3. Entrepreneurship Theory
The term entrepreneurship comes from the French
entrepreneur, which means intermediary. In the Big
Indonesian Dictionary, entrepreneur is defined as "a person
who is smart or talented in recognizing new products,
determining new production methods, arranging operations
for distributors of new products, marketing them and
managing operating capital". In terms, entrepreneurship has
several meanings from experts. Among them, Jean Babtista
in Conner (2016), according to Say entrepreneurship is the
(ability) of agents to uniting various means of production and
finding the value of their production, so that they are able to
bring other people together to build a production
organization. In the early 20th century Frank Knight (1921)
in Conner linked entrepreneurship to the market. According
to him, entrepreneurship is the courage of an entrepreneur in
producing and responding to market changes. Another notion
of entrepreneurship was proposed by Joseph Schumpeter
(1934) in Conner, who defined entrepreneurship as an
entrepreneur's innovation as their response to market changes
through new combinations. New combinations mean
acquiring new raw materials, producing new products,
Advances in Social Science, Education and Humanities Research, volume 626
finding new production methods, opening up new markets,
and implementing new processing management in the
industry [24].
According to Pinchot, as quoted by [25], entrepreneurship
is the ability to internalize existing talent, engineering, and
opportunities, while entrepreneurs are people who dare to
take risks, are innovative, creative, never give up, and are able
to deal with opportunities appropriately. In accordance with
this understanding, Sukardi stated that entrepreneurship is the
ability of an entrepreneur to create work for others by
establishing, developing, and institutionalizing his own
company, ready to take risks and creatively using their
potential in developing their production. In the view of the
Ministry of National Education, entrepreneurship is an
attitude, soul, and ability to create something new, very
valuable and useful both for himself and others.
Entrepreneurship is a mental attitude and spirit that is
always active and creative, empowered, creates, works, and
strives in order to increase income from its business activities.
Entrepreneurs are defined as skilled people who take
advantage of opportunities in developing their businesses to
achieve life achievements. From some of the definitions
above, it can be understood that there are various definitions
of Entrepreneurship. This is possible because the concept of
Entrepreneurship itself is a social science concept that is
dynamic, changing along with the development of science
and technology. However, in general, it can be concluded that
the definition of entrepreneurship is defined as a process that
accompanies a business in which the entrepreneur is ready to
take all risks, be responsive, creative, and innovative, carry
out good management, and think about mutual benefits.
Related to several definitions of Entrepreneurship from
experts, Entrepreneurship has several classifications, as
follows; (1) Innovating Entrepreneurship is characterized by
an aggressive collection of information which is then
analyzed and always monitors the results achieved from the
process of combining new factors of production. The
entrepreneurs in this group generally experiment aggressively
and are skilled at practicing the possible transformations
attractively; (2) Imitative Entrepreneurship is characterized
by a willingness to imitate the innovations successfully
implemented by innovative Entrepreneurs; (3) Fabian
Entrepreneurship is characterized by a cautious and skeptical
attitude, but in the end, still imitating. This causes the
emergence of concerns about losing a relative position in the
industry and business competition; (4) Drone
Entrepreneurship is taken from the equivalent of the word
Drone, which is lazy. This entrepreneurship is characterized
by a reluctance to carry out changes in production activities,
even though this has the consequence of causing losses and
lagging other production power; (5) Parasitic
Entrepreneurship is grouped as a business in the category of
entrepreneurs who always wait for opportunities in adversity
to take advantage of certain conditions in order to get as much
profit as possible even though it is against the law and ethics.
Hoarders, renters are included in this Entrepreneurship
classification. The discussion about the concept of
Entrepreneurship continues to grow, often with the
development of science and existing social dynamics. Other
terms appear including, Entrepreneurship and
Entrepreneurial. Entrepreneurship is intended as
Entrepreneurship that occurs within the organization as a
bridge to the gap between knowledge and market desires. In
comparison, Entrepreneurial is an activity in running a
business or being an entrepreneur.
Along with the development of the concept of
Entrepreneurship, a discussion about the characteristics of
Entrepreneurs also emerged. Since the diversity of the
concept of Entrepreneurship is put forward by experts, the
discussion about the characteristics of Entrepreneurs is also
diverse. (Paul Dana, 2017) created seven characters that
entrepreneurs must have; (1) Self-confidence, where the
indicators are confidence, independence, self-reliance, and
optimism; (2) Task and result-oriented. Indications of this are
the need for achievement, profit-oriented, have perseverance
and fortitude, have strong determination, like to work hard,
are energetic and have initiative; (3) Risk-taker. The
indication is the ability to take risks and prefer challenges; (4);
Leadership. In this case, it is indicated by behaving like a
leader, being able to get along with others, and liking
constructive suggestions and criticism; (5) Originality The
signs are high innovation and creativity, flexibility,
versatility, and a vast business network; (6) Future-oriented.
The indication is to have a perception and a way of looking
ahead; (7) Honest and Diligent. This is characterized by the
belief that life is the same as work.
McClelland, as quoted by [27], made the concept of Need
For Achievement by detailing the characteristics of
Entrepreneurs as follows; (1) Prefers work with realistic risks;
(2) Work harder in tasks that require mental ability; (3) Not
working harder solely because of monetary rewards; (4)
Desire to work in situations where personal achievement can
be obtained; (5) Demonstrate better performance under
conditions that provide clearly positive feedback; (6) Tend to
think into the future and have a long-term plan.
Meanwhile, Bygrave also suggested several
characteristics of entrepreneurs, including; (1) Dream, that is,
an entrepreneur has a vision of how he wants the future from
his personal life and business development, including the
ability to realize his desires; (2) Decisiveness, an entrepreneur
is a person who works quickly and is responsive and precise
in making decisions with full calculation; (3) Doers, quickly
follow up on decisions that have been taken by maximizing
existing opportunities; (4) Determination, have accuracy and
a high sense of responsibility, and do not give up easily;(5)
Dedication, has a high dedication to his business; (6) Love the
business and its business; (7) Details, have high accuracy, and
never underestimate the slightest cause of business failure; (8)
Destiny, responsible for the goals to be achieved and not
dependent on others, and free (8) Dollars of money is one
measure of success; (9) Distribute, willing to distribute his
business ownership to people who can be trusted, critical, and
willing to be invited to succeed together.
The characteristics possessed by an entrepreneur are not
something that comes suddenly but are produced from certain
processes through the factors that deliver them. Some of those
factors are; (1) Environmental Factors. According to
Duchesneau, most successful entrepreneurs are people who
were raised by parents who were also entrepreneurs because
of the many experiences they have. Likewise, the influence of
Advances in Social Science, Education and Humanities Research, volume 626
parents' work on the growth of their children's entrepreneurial
spirit is very significant; (2) Education Factors. A good
education will provide better knowledge in managing their
business. It will be very helpful in overcoming the problem of
correcting irregularities in the business; (3) Age Factor.
According to Staw, age can have a correlation with the level
of success if it is associated with the length of time a person
has been an entrepreneur. In other words, the older an
entrepreneur gets, the more experience he has in his business;
(4) Work Experience Factor. Work experience is a driving
factor for the success of an entrepreneur, the experience of
dissatisfaction and failure has also become one of the
motivations in developing a new business.
Therefore, entrepreneurship is an essential factor in
economic development. Entrepreneurship also determines the
success of the economic activities carried out. Therefore,
entrepreneurship is also associated with the term religion,
which is the main motivator by the Muslim community,
including in Indonesia. For this reason, so that the Islamic
spirit about entrepreneurship can be better understood, it is
necessary to continue to conduct studies and development
practices, especially in zakat institutions.
This study used a qualitative method research design with
a case study strategy (Figure 2) model (Yin, 2018) The case
study research was carried out to find out a decision or a series
of activities: why it was taken, how it was carried out, and
with what results. The main focus of case studies, in general,
includes individuals, organizations, processes, programs,
environments, institutions, and events. This study aimed to
explore more deeply the activities carried out by the object of
research in the field directly.
In addition, this method is designed to be a medium for
finding something new that cannot be found when using a
questionnaire or survey model. This research was located in
Central Lazismu. Referring to the Central Lazismu data, the
creation of productive economic empowerment programs has
been being carried out since 2015, which has been carried out
in several Lazismu areas throughout Indonesia.
Furthermore, for technical data collection, interviews
were carried out with the director of Lazismu, the head of the
economic empowerment program manager, and the recipients
of the productive economic empowerment program that was
already running, in this case, the recipients of the zakat
entrepreneurship program from Lazismu. Furthermore,
interviews with recipients of the empowerment program were
conveyed to the recipients of the business empowerment
program, in this case, the mustahik recipients of venture
capital funds that have been running for one year.
Furthermore, this form of data collection was carried out in
the form of semi-structured interviews and questionnaires. In
more detail, the formulation of the methodology in this study
was described in the method below:
Figure 1. Qualitative research method with case study model
by Yin (2018).
1. Plan (Doing research planning): carried out to estimate
the time, cost, and suitability of the research topic.
2. Design (Creating a research design): determine the
model and steps to be carried out in the research.
3. Prepare: prepare instruments and other equipment
according to research needs. At the same time,
validation tests are carried out to competent parties
4. Collect (collection of data): collect data according to
the research plan as well as design a collection model.
5. Analyze (perform data analysis: the steps taken are data
reduction, data display, and conclusions.
6. Share (make a research report).
Several theories about programming state that before
developing an effective work program, according to Brian
Tracy, it is necessary to arrange steps in making an effective
and impactful work program. Some of these things are,
clearly define goals, write and measure goals, determine
deadlines, list all actions that can be taken to achieve goals
and combine the 4 steps that have been arranged in a work
program. Regarding the effective steps in making the
Lazismu work program, the results of an interview with the
President Director of Lazismu Mr. Sabeth Abi Lowo revealed
that effective steps have been taken in making the program
according to the criteria described by Brian Tracy above.
However, there is no complete combination related to the
steps that have been arranged in a work program that is
connected between one program and another [29].
On the other hand, Lazismu uses the principle of mutual
deliberation in the form of a meeting one year prior to the
realization of the program. Programming specifically
analyzes and predicts current conditions. In that case, the
economic empowerment program carried out is to identify the
economic constraints that will be faced by the poor in the
coming year. Furthermore, the program is made based on
priorities that become the reference for program targets in
Advances in Social Science, Education and Humanities Research, volume 626
accordance with the pillars that have been determined by
Lazismu. The six pillars include the pillars of education,
health, da'wah, social, humanitarian and economic. In
particular, the economic sector is divided into programs that
target recipients in the economic sectors of the zakat recipient
The economic pillars currently being developed by
Lazismu are agriculture, plantations, fishermen, animal
husbandry, micro, small and medium enterprises (MSMEs),
and micro businesses that are carried out on a non-permanent
basis (pedestrians) through the provision of business capital
assistance. Giving capital to zakat recipients is based on the
business being run, farmers are given six months, traders five
times a week (6-7 days). The program for providing
community economic empowerment funds based on the
program made by Lazismu is 70% while the remaining 30%
is distributed based on proposals submitted by the community
who will run their program and business activities. After
careful scrutiny, the programs that issue large funds are
programs that are in collaboration with third parties who
provide funds for the implementation of certain programs that
must be carried out.
Table 1. Central Lazismu entrepreneurship empowerment
Program Name
Number of
Tani Bangkit
50 %
Business Training
Islamic micro-institutions
Source: Primary Data 2021 (processed)
The table above can be explained that the number of
recipients of the Lazismu economic empowerment program
for the period June - December 2021 include 175 farmers, 136
SMEs, 80 recipients of farms, 200 batik making training and
1 microfinance institution (BMT) that received capital
assistance from Lazismu. Furthermore, for the food security
program as many as 6600 beneficiaries, although in general it
can be categorized as supporting the economic program, but
it is more consumptive so that it is not classified as a
productive economic empowerment program. After
observing the number of recipients of the food security
program, because during this pandemic, more people need
assistance in the context of restoring general economic
conditions due to the large number of people who do not have
jobs or are dismissed from their workplaces due to the Covid-
19 outbreak. The realization of the economic empowerment
program for the months of June December 2021 is 2.6
billion rupiah. If it is specifically specified for the productive
economic empowerment program as many as 592 people in a
6-month period, namely June to December 2021. In detail it
can be explained that during that period Lazsimu has
succeeded in alleviating poverty and changing the status of
mustahik to muzaki as many as 296 people. If the distribution
activity can be carried out for 1 year, it will produce at least
592 new entrepreneurs.
The evaluation stage of the ongoing economic
empowerment program, especially for small and medium-
sized enterprises, is carried out to provide an assessment of
the feasibility of the business being carried out related to the
provision of further capital. The results of the analysis serve
as a reference for Lazismu whether or not to provide capital
assistance. This is done so that business continuity is
maintained. For business actors who have succeeded in
increasing their income and can independently continue their
business, there is no need for assistance. Furthermore, for
entrepreneurs who fail to run their business and are no longer
able to continue, no assistance will be given. Meanwhile, for
business actors who experience a decline in their business but
are still enthusiastic about running a business and
calculatingly the business can run and survive and even
increase after being given assistance, priority is given to
business capital assistance [30].
Regarding the risk analysis of the business being carried
out, in principle, Lazismu has conducted an analysis of the
risks that arise when running a business. Although the
analysis carried out has not fully implemented the risk
management standards that have been set by BAZNAS in
order to minimize the risks that will occur. However, the
application of risk management plays a role as a determinant
of the realization of business empowerment capital assistance.
The application of other forms of evaluation is carried out by
Lazismu external parties in order to improve the performance
and success of the programs run by the central Lazismu.
Lazismu's success in fostering the spirit of
entrepreneurship by creating entrepreneurial empowerment
programs for the poor in general can be said to be achieved
by the success of fostering business actors through established
programs. Furthermore, it can summaries that Lazismu are
successful in cultivating an entrepreneurial spirit as described
by McClelland cited by Yuyus Suryana and Kartib Bayu by
comparing the concept of an entrepreneur who prefers work
despite the risks, working harder is not only for money,
always want to work for self-actualization, perform better and
think in the future. This success can be seen in the
entrepreneurs who have been successfully fostered by
Lazismu and have proven successful in advancing their
Programming when viewed from the SMART model
which was coined by George T Doran in 1981 that the
program must be made based on specific, measurable,
achievable, relevant, time-based criteria. Furthermore, the
program that has been made by Lazismu has met the special
criteria, the measuring instrument has been determined so that
it can be measured and can be achieved if it follows the
specified criteria. In addition, the program made is also
relevant to the conditions and needs of program recipients and
the conditions of economic problems because the program is
made based on current and future economic analysis and
predictions. Meanwhile, related to the target time, Lazismu
has also made an implementation schedule until the program
has been completed. Thus, the programming implemented by
Lazismu meets the requirements as set out in the smart goals
Advances in Social Science, Education and Humanities Research, volume 626
Lazismu's role through the poor community
empowerment program is carried out in several stages,
starting from the preparation of the strategic plan before the
program is implemented, determining the type of program,
implementation, evaluation and mentoring. Meanwhile, the
management and implementation model Lazismu creates a
special team and collaborates with others professional team
in order to make the program implementation a success. The
program of Lazismu is in the form of rising farmers, MSMEs,
livestock, capital assistance for Islamic microfinance
institutions in accordance with the theory of raising the spirit
of entrepreneurship and smart goals. Overall economic
empowerment program carried out by Lazismu, in general, it
went well and smoothly according to the planned target. In
addition, the economic empowerment program carried out by
Lazismu has succeeded in converting zakat recipients into
zakat providers by 50% of the total economic empowerment
programs carried out.
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Advances in Social Science, Education and Humanities Research, volume 626
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In this research, writer to use quantitative method that is research wish to explain influence relationship and difference between variable X1 (Zakat Earning), X2 (interest of entrepreneurship) and variable Y (People Income) at baznas in Gorontalo city. The population in this research is 250 benefic of productive zakat and the samples are 71 samples. Method of sampling by random sampling. Sources of data in this study are primary data and secondary data. Zakat productive and entrepreneurial interests simultaneously have a positive and significant effect on increasing the income of poor people in Baznas KotaGorontalo. It is obtained from the test result f that is fcount of 17,597 with significant level 0.000 and ftabel = 3,13 with significant level 0,05, and also R Square value equal to 0,341 or 34,1%. In this case means that productive and entrepreneurial zakat affect the increase in income of the poor by 34.1%, while the rest of 65.9% influenced by other variables not examined in this study
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The purpose of this paper is to analyze the problems of zakat governance in Indonesia, with the case study of BAZNAS in Sragen Regency. This is a qualitative research with the perspective of institutional theory. Results indicated that: (1) BAZNAS Sragen has a relatively high transaction cost due to several factors, particularly the costs of seeking information and monitoring; (2) BAZNAS Sragen conducts asymmetric information which is characterized by the lack of transparency, accountability, and fairness; (3) BAZNAS Sragen has a potential to perform opportunistic behavior in the form of political contamination in the distribution of ZIS funds. The less efficient of the governance causes the less optimal performance of BAZNAS Sragen, either in the limited amount of zakat fundraising or in its performance in empowering the poor.
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In community and state life there are circles whose existence and potential are not maximized. So that it continues to be a problem that has no solution, namely the existence of the poor people whose potential is not empowered. Zakat should be a source of capital for them to move the economy, impeached from their role. There are many mistakes in understanding the meaning of zakat and misdirection in distribution. Zakat is only distributed consumptively. So that this kind of way makes the potential of the dhuafa tend to be passive and make their living conditions never change from their position as mustahiq. So this requires an effort to restore the function and role of zakat in its correct position, in accordance with the objectives of the Shari'a, namely to make the mustahiq, change, grow and develop into muzakki.
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This study evaluates the efficiency of Indonesian Zakat Institutions (IZI), including technical, pure technical and scale efficiencies using a production approach. This study also examines the sources of inefficiency. By employing the Data Envelopment Analysis (DEA) technique, this study proposes a solution to improving the efficiency of IZI. The input variables of this study are the number of amil, the number of volunteers, the number of offices, socialization costs, personnel costs, and operational costs. The output variables of this study include the amount of zakat collected, the distribution of consumptive zakat, the distribution of productive zakat, the number of muzakki and the number of mustahiq. The results indicate that between 2010-2013 IZI Mass technical efficiency were higher than IZI Non-Mass on average. In 2014, IZI Non-Mass exceeded IZI Mass technical efficiency. IZI Mass pure technical efficiency had an upward trend during 2011-2013, but then declined during 2014-2016. However, IZI Non-Mass pure technical efficiency experienced an upward trend during 2011-2012, then slightly decreased in 2013. Although the efficiency increased in 2014-2015, there was a subsequent decrease in 2016. After a period of fluctuation during 2011-2013, the scale efficiency of IZI Mass decreased in 2014 and stabilized in 2015-2016. Similarly, IZI Non-Mass fluctuated during 2011-2012, then stabilizing until 2016. The increasing problems of IZI Mass and IZI Non-Mass are the socialization costs, the number of volunteers, the amount of zakat collected, and the distribution of consumptive zakat, which cumulatively reduces the intermediation function of zakat institutions. IZI must resolve these issues to ameliorate the efficiency of zakat institutions.
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The Bureau of Labor and Employment Survey data on youth employment reveal that the Filipino youth are predominant in entrepreneurial activities in the country. The youth is defined by the Youth in Nation Building Act of 1994 (RA 8044) as individuals between the age of 15 and 30 years old. Unfortunately, the youth also experience the highest level of unemployment, where 49 percent of the unemployed belong to the age bracket of 15 to 24 years old. To immediately address this problem of youth unemployment, the government encourages the youth to go to into business. Two of the programs of the government, specifically that of Department of Labor and Employment (DOLE), aimed at reducing the number of unemployed as well as addressing the education for employment needs of the youth are the Youth Education-Youth Employability (YE-YE) Project and Youth Entrepreneurship Support (YES) Project. Applying the propensity score matching (PSM) method on the Community-Based Monitoring System (CBMS) data, the study focused on assessing the impact of government programs—such as the YE-YE and YES projects—in improving the welfare of the Filipino youth. Results show that the youth who availed of one or two of the entrepreneurial programs received higher incomes and wages of around three thousand pesos and two thousand pesos per year, respectively. Despite this favorable results, however, only a small proportion of the youth avail of government-sponsored training and education programs. Hence, there is a need to promote the entrepreneurial programs among the youth and to monitor their progress and continually support their efforts in sustaining entrepreneurial endeavors.
Zakah is a treasure worship that is believed to be able to overcome social and economic problems. Not just to meet the basic needs of the mustahiq Zakat has the ability to develop people's economy. To get the maximum results zakat institutions need to do a lot of new studies and breakthroughs. Lazismu of Demak utilizes zakat for the development of productive economy with the goal of creating jobs, reducing unemployment and poverty. This is what makes researchers interested in conducting research to find out what kind of zakah implementation in the development of productive economy as well as the economic development mustahik after the implementation of zakat as a productive economy. Because it includes field research researchers used the Phenomenological approach data collected through observation, documents,questionnaires and interviews. Then, the data was analyzed sequentially and interactively consisting of three stages, namely: 1) data reduction, 2) data presentation, 3) conclusion drawing or verification. The productive use of zakat in developing productive economy consisted of traditional and creative uses. Traditional economic productive use was realized by providing working tool to mustahiq. Creative economic productive was conducted by providing capital in from of pure grant to mustahiq, provide a capital loan in a very easy way, not burdening the mustahiq and invest zakat funds into the real business sector. The zakat institution will receive capital invested and benefit from the businesses, then the capital and benefits will be used for ummah advantages. From the findings, it can be known that some participants of productive economy were able to develop their business well. Some others were only able to meet their basic daily needs. While some more others were less trustworthy in using capital loan provided.Zakat adalah ibadah maliyah yang mampu mengatasi masalah-masalah sosial dan ekonomi. Selain memenuhi kebutuhan pokok para mustahiq, zakat mampu mengembangkan perekonomian ummat. Untuk mendapatkan hasil maksimal tersebut, lembaga-lembaga zakat perlu banyak melakukan kajian dan terobosan-terobosan baru. Seperti LAZISMU Demak yang mendayagunakan zakat untuk pengembangan ekonomi produktif dengan tujuan menciptakan lapangan pekerjaan, mengurangi pengangguran serta kemiskinan. Inilah yang mendorong diadakannya penelitian guna mengetahui seperti apa implementasi pendayagunaan zakat dalam pengembangan ekonomi produktif serta perkembangan ekonomi mustahiq setelah diimplementasikannya zakat sebagai ekonomi produktif. Karena termasuk penelitian lapangan (field research), peneliti menggunakan pendekatan Phenomenologis, data dikumpulkan melalui observasi, dokumen, angket dan wawancara, kemudian akan dianalisis secara berurutan dan interaksionis yang terdiri dari tiga tahap, yaitu: 1) Reduksi data, 2) Pernyajian data, 3) Penarikan simpulan atau verifikasi. Dari penelitian tersebut didapatkan hasil bahwa bentuk pengembangan ekonomi produktif di LAZISMU DEMAK meliputi tradisional dan kreatif. Ekonomi produktif tradisional meliputi pembelian alat kerja untuk mustahiq. Adapun ekonomi produktif kreatif melaui pemberian modal dalam bentuk hibah murni, memberikan pinjaman modal dengan cara yang sangat mudah, tidak membebani mustahiq dan menginvestasikan dana zakat ke sektor usaha nyata. Hasil investasi dimanfaatkan sebesar-besarnya untuk mustahiq. Dengan cara ini sebagian peserta ekonomi produktif mampu mengembangkan usahanya dengan baik, sebagian lagi hanya mampu memenuhi kebutuhan pokok sehari-hari dan sisanya kurang amanat dalam menggunakan pinjaman modal yang diberikan.
There is a need to rethink and redefine the social value added of entrepreneurial activities to society. In this paper we develop five pillars on which the evolving social role of entrepreneurship can rest and have its impact: (1) connecting entrepreneurial activities to other societal efforts aimed at improving the quality of life, achieving progress, and enriching human existence; (2) identifying ways to reduce the dysfunctional effects of entrepreneurial activities on stakeholders; (3) redefining the scope of entrepreneurial activities as a scholarly arena; (4) recognizing entrepreneurship's social multiplier; and (5) pursuing blended value at the organizational level, centering on balancing the creation of financial, social and environmental wealth. In a final section we discuss implications for practices and for further research. This article is protected by copyright. All rights reserved.
Corporate entrepreneurship (CE) as a valid and effective area of research has real and tangible benefits for emerging scholars because their work will significantly impact an emerging strategy. The research on CE has evolved over the last 40 years beginning very slowly and growing in importance through the decades. While the inherent value of entrepreneurial action on the part of established organizations has been established, there remains a greater need for further research about CE in organizational settings. Fortunately, knowledge accumulation on the topic of CE has been occurring at a rapid rate, and many of the elements essential to constructing a theoretically grounded understanding of the domains of CE can now be identified. However, despite the recent expansion in CE research, the theoretical and empirical knowledge about the domain of CE and the entrepreneurial behavior on which it is based are still key issues that warrant a deeper understanding. Ongoing scholarly work has also raised new and important research questions and identified further theoretical avenues requiring exploration. In this article, we review some of the significant research work that has been done in the CE literature and examine the future directions for CE researchers. The increasing value of future research in this domain, including the research highlighted in this special issue, may very well enhance the innovative challenges confronting organizations in this new global economic reality.
  • Statistik Badan Pusat
Badan Pusat Statistik (BPS), "Data Sosial Ekonomi," 2019.