ISSUES AND CHALLENGES OF THE ASNAF ENTREPRENEURSHIP PROGRAM

Abstract

Through entrepreneurship, the Asnaf Entrepreneurship Program is a vital initiative by zakat institutions in Malaysia to improve the socio-economic conditions of the asnaf, or rightful beneficiaries of zakat. Since the program's recipients are Asnaf, the underprivileged who may or may not have had the experience of conducting business. This article examines the issues and challenges the program faces. The study highlights the significant role of zakat institutions in poverty alleviation and the promotion of social welfare, emphasising the need for effective management practices and the integration of modern accounting systems. Key challenges identified include trust deficits, management inefficiencies, the need for innovation and technological adoption and enhanced elements of social capital in the Asnaf Entrepreneurship Program. The findings suggest that addressing these challenges through strategic reforms and enhanced transparency can significantly improve the impact of the Asnaf Entrepreneurship Program, thereby contributing to sustainable economic development.