Alternative Financing Model of Micro Enterprises Based on Productive Zakat by Amil Zakat Institution (LAZ) in Surabaya

Abstract

This  article  discusses  the  problems  that  arise  in  micro- enterprises  in  Indonesia  in  general,  namely  capital problems,  income  distribution  and  the  quality  of  the products  offered.  Which  of  these  problems  can  reduce  the productivity  of  micro-enterprises  and  in  the  end  cannot guarantee  the  welfare  of  the  local  community.  This  study aims to identify and analyze the benefits of productive zakat as an alternative financing model for micro-enterprises. The research  method  used  by  researchers  is  descriptive qualitative  field  research.  Data  collection  tool  used  is triangulation  (observation,  interview  and  documentation). The data analysis technique uses three stages, namely data reduction, data presentation and conclusion. The results of the analysis show that there is a significant multiplier effect to reduce economic disparities in Surabaya through meeting the capital needs of micro businesses by implementing the LAZ  concept  and  micro  businesses  as  catalysts  for developing  micro  businesses  through  productive  zakat schemes.  The  pattern  for  developing  micro-enterprises  is through productive zakat funds that have been collected by the Amil Zakat Institution (LAZ) for micro-enterprises. The author  will  describe  the  mechanism  and  role  of  the  Amil Zakat  Institution  (LAZ)  in  channeling  productive  zakat funds  so  that  through  this  they  are  able  to  overcome  the problems of micro-enterprises.