The Effect Of Zakat Distribution Through Small-Medium Enterprises (Sme) Programs On Increasing The Mustahik Economy: A Study On “Swadaya Ummah” Amil Zakat Institution, Pekanbaru Office

Abstract

This study aims to analyze the effect of zakat distribution through the small and medium enterprises (SMEs) program on the economic improvement of Mustahik. This research was conducted at Laz Swadaya Ummah Pekanbaru branch with a population of 60 respondents and a sample of 60 with the Slovinn formula. The primary data collected by using questionnaire which was measured by a Likert scale. The Structural Equation Model (SEM)  is used to estimate our models, with the help of the WarpPLS application version 7.0. The results showed that the Distribution in the form of "Small and Medium Enterprises" Economic Program, this program is implemented in the form of Business Capital Assistance for 8 asnaf including: Poor, Poor, Amil, Muallaf, Slave, Gharim, Fi sabilillah and Ibnu Sabil. Where the priority for this Business Capital Assistance is the poor and poor. Where the needy and poor are considered to be more in need from an economic point of view that lacks sufficient to provide for their daily lives, so that with the assistance of "Small and Medium Enterprises" this can help increase income. Assistance provided with the condition that the poor and poor have a business that is being run, and preferably to buy the basic needs of the business that is being developed Mustahik, therefore Mustahik need to complete all requirements and will be surveyed directly by LAZ Swadaya Ummah Pekanbaru so that it can be assessed eligible or not to receive "Small and Medium Enterprises" assistance. This is all done so that the assistance of "Small and Medium Enterprises" is more targeted.. Based on the analysis, it is found that the distribution of zakat through the UKM program (X) has a significant positive effect on the improvement of the Mustahik economy (Y).