The Islamic economic system recognizes the importance of resource ownership, motivations, and decision-making processes. Islam allows both private and public ownership. However, in the end, it all belongs to Allah. The primary reason for an individual Muslim is to be successful in this world and the hereafter. Islam recognizes the significance of profit as the goal of a Muslim entrepreneur to provide him with an incentive to work hard and be successful. Therefore, a Muslim producer faces profit maximization, limited not only by resource constraints but also by Islamic value ethics. The assets owned by a Muslim must be sourced from something lawful with no usury, and when it reaches the nishab (the minimum amount that a Muslim must have before being obliged to give zakat) and haul (timeline to pay zakat), the owner must pay zakat. Giving zakat is considered as a means of purifying one’s property and soul. So that the fulfillment of zakat becomes a moment in redistributing wealth so that it can be of value to those in need.
Although Indonesia has several zakat collection and distribution institutions regulated by law, there are no binding legal means to force Muslims to pay zakat. One of them is realizing the potential for zakat from SMEs. Zakat fund managers cannot collect the zakat funds optimally even though SMEs are a real sector with the most strategic position. The increasing number SMEs has had beneficial effects such as reducing the burden on the government to provide employment, enhancing economic growth, becoming the best alternative for groups with low purchasing power, and serving as a source of zakat receipts. It is interesting to explore the factors that can trigger the behavioral intention of the obligatory zakat to comply.
This research attempted to explore the determinants of small and medium enterprises (SMEs) compliance behavior in paying zakat (alms). This study involved business owners (SMEs) in the city of Mataram as the population and 176 people as the sample. The data were collected through online survey instruments employing the purposive sampling method. The testing technique and data analysis utilized Structural Equation Modeling (SEM). Hence, the findings discovered that zakat literacy, Islamic egalitarianism, and moral norms influence the intention of SMEs owners to pay zakat. On the other hand, intention affects the owner’s choice and compliance to pay zakat. This study is essential for zakat institutions to have a new strategy to encourage SMEs owners to pay zakat, considering the great potential in Indonesia. Distribution of zakat funds to asnaf (noun group of people worthy of receiving a Muslim tithe) fairly and equitably will attract more owners to pay their zakat through zakat institutions. Transparency and fairness in the distribution of zakat funds can increase the level of trust of SMEs owners in zakat institutions.
Author: Hanifiyah Yuliatul Hijriah, S.EI., M.SEI.
More information about this article can be found in Akademika: Jurnal Pemikiran Islam Vol. 28, No. 01 January “ June 2023, which can be accessed at the following link:
