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

Djalaluddin, Ahmad ORCID: https://orcid.org/0000-0001-7062-663X, Hasibuan, Lempang, Pulungan, Akhir Saleh, Siswanto, Siswanto ORCID: https://orcid.org/0000-0003-0190-627X, Asnawi, Nur and Hadiri, Yousf Faraj (2026) Productive zakat, business growth, and mustahiq welfare: Evidence from BAZNAS Malang. Review of Islamic Social Finance and Entrepreneurship, 5 (1). pp. 137-157. ISSN 2963-847X

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Abstract

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

Item Type:	Journal Article
Keywords:	business assistance; business growth; mustahiq welfare; productive zakat
Subjects:	14 ECONOMICS > 1402 Applied Economics > 140207 Financial Economics 14 ECONOMICS > 1499 Other Economics > 149999 Economics not elsewhere classified
Divisions:	Faculty of Economics > Department of Islamic Banking
Depositing User:	Siswanto Siswanto
Date Deposited:	22 Apr 2026 10:54

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