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Productive Zakat is a support, in the form of business assistance and capitals, given to Mustahiq that is not spent directly on the consumption of specific needs but is developed and used to support Mustahiq’s business so that they can continuously meet their basic needs. Productive Zakat is one of the ways to increase Mustahiq income; hence they can transform into Muzakki in the long run. This quantitative research determines the impact of productive zakat and business assistantship on improving mustahiq welfare. This research employs Partial Least Square Structural Equation Modelling (PLS-SEM) analysis to identify the causal effect of productive zakat on the welfare of the Mustahiq. The result shows a significant positive impact of productive zakat empowerment on Mustahiq’s welfare. This finding suggests that productive Zakat empowerment by zakat institutions improves Mustahiq welfare.
Widiastuti et al. (Thu,) studied this question.