Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor

Hamdan, Hamdino and Othman, Pazim @ Fadzim and Wan Hussin, Wan Sabri (2015) Enhancing the effectiveness of the Islamic microfinance programme: experience of Lembaga Zakat Selangor. Jurnal Evolusi, 4 (1). pp. 13-32. (Unpublished)

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Abstract

Many experiences around the globe showed that Islamic Microfinance Programs (IMP) based on Shariah and Islamic finance concept, have become more significant in creating new job opportunities and generating income for the purpose of increasing social and economic status of the poor and alleviating poverty. The integration of entrepreneurial concept, training and microenterprise into IMP also contributes in increasing the effectiveness of the programme. ‘Asnaf Entrepreneurs Development Programme’ (AEDP) conducted by Lembaga Zakat Selangor (LZS) is among the pioneers and most established IMP in Malaysia. The implementation of IMP, which was preceded by selection process of asnaf participant and also accompanied by training and good monitoring, is effective in developing asnaf entrepreneur and improving poor asnaf income. Asnaf entrepreneurs’ development requires not only provision of financing in an interest free-based system but it also needs the provision of other services. The purpose of this paper is to suggest a way to improve the effectiveness of IMP in Selangor. The approach used to measure and evaluate the effectiveness of the IMP in Selangor is based on changes in revenue levels shown by the participants of the program among the poor asnaf and then develop a concept based on the literature review, research findings and comparison with the most successful microfinance programs in Malaysia, namely Amanah Ikhtiar Malaysia (AIM). This paper shows how in the Islamic perspective, spiritual development is necessary in improving the effectiveness of IMP in Selangor.

Item Type:	Article (Journal)
Additional Information:	6883/75712
Uncontrolled Keywords:	Islamic microfinance, asnaf entrepreneur, Islamic perspective, poverty alleviation
Subjects:	H Social Sciences > HB Economic Theory > HB126.4 Islamic Economics H Social Sciences > HG Finance > HG3368 Islamic Banking and Finance
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences Kulliyyah of Economics and Management Sciences > Department of Finance
Depositing User:	dr hamdino hamdan
Date Deposited:	29 Oct 2019 16:10
Last Modified:	29 Oct 2019 16:11
URI:	http://irep.iium.edu.my/id/eprint/75712

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