IJIBEC Organizational Support, Mustahiq Micro-Business Development and Poverty Alleviation: A Comparison Analysis Between BAZNAS and LAZNAS Budi Trianto1*, Evan Hamzah Muchtar2, Ade Chandra3, Masrizal4, Tasiu Tijjani Sabiu5 1,Sekolah Tinggi Ekonomi Islam (STEI) Iqra Annisa, Pekanbaru, Indonesia Correspondence email : budi_asamandiri@yahoo.com 2Sekolah Tinggi Agama Islam (STAI) Asy-Syukriyyah, Tangerang, Indonesia email : evan.hamzah.m@gmail.com 3,Sekolah Tinggi Ekonomi Islam (STEI) Iqra Annisa, Pekanbaru, Indonesia email : adec152@gmail.com 4,Sekolah Tinggi Ekonomi Islam (STEI) Iqra Annisa, Pekanbaru, Indonesia email : masrizalrizal95@gmail.com 5Yusuf Maitama Sule University, Kano, Nigeria email : 17h0346@ubd.edu.bn Article Info Article History: Received : 3 April 2021 Accepted : 12 August 2021 Published : 1 December 2021 Abstract This study aims to investigate whether the organizational support provided by BAZNAS and LAZNAS has a positive impact on the success of micro business development programs and poverty alleviation. Population in this study are mustahiq who have received empowerment program from BAZNAS and LAZNAS with the total sample size are 89 mustahiq. Data were collected using questionnaire with Likert scale 1 – 5 and were analyzed using Path Analysis. The results of this study indicate that the organizational support provided by LAZNAS tends to be better when compared BAZNAS. This study also found an important fact that the mustahiq micro-business development program was able to alleviate poverty. The results of this study imply that to get a maximum result of mustahiq micro-business development, BAZNAS must evaluate and innovate the mustahiq micro-business development program. Meanwhile LAZNAS must provide more optimum support for capital assistance and mentoring to get a maximum impact. This is the first study in comparing the micro-business development between BAZNAS and LAZNAS in Indonesia. Keywords: Mustahiq Empowerment, Micro-Business Development, Poverty Alleviation, BAZNAS, LAZNAS DOI: 10.28918/ijibec.v5i2.3731 JEL: I32, I38, Z13 International Journal of Islamic Business and Economics Available at http://e-journal.iainpekalongan.ac.id/index.php/IJIBEC ISSN 2599-3216 E-ISSN 2615-420X Vol 5 No 2 2021 116 mailto:evan.hamzah.m@gmail.com mailto:adec152@gmail.com mailto:17h0346@ubd.edu.bn 117 International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 116-129 1. Introduction Poverty alleviation is not only a priority for the Government of Indonesia, but also a serious concern by the United Nations. United Nations issued a Sustainable Development Goals (SDGs) program which consists of 17 main targets. One of the 17 programs is poverty alleviation. Poverty alleviation programs are made a priority because more than 700 million people live in extreme poverty (United Nations, 2021). The Indonesian government has also issued various programs to alleviate poverty, including rice assistance for the poor (Raskin), direct cash assistance (BLT) to other non-cash transfers such as labour-intensive programs. The government also encourages each company to set aside a portion of the company's profits for social programs intended for the poor in the company's operations. The government has also begun to optimize the role of zakat organizations in helping alleviate poverty. Some scholar like as Sadeq, (1997), Ben Jedidia & Guerbouj, (2020) and Razak, (2020) argues that zakat as the instrument of Islamic wealth in poverty alleviation and redistribution. Zakat is also good for social protection for the poor and the needy (Bilo & Machado, 2020). The government is well aware that as the largest Muslim country in the world, it certainly has great potential in collecting zakat funds. According to the results of mapping conducted by the National Zakat Agency (BAZNAS), the potential for zakat in Indonesia reaches IDR 233.8 trillion (Republika, 2019), even the potential for zakat in Indonesia in 2023 according to The Global Islamic State will reach IDR 500 trillion (Dompetduafa, 2021). With such a large potential, it will be very helpful in alleviating poverty in Indonesia. According to the Indonesian Central Statistics Agency (BPS), the poverty rate in Indonesia in March 2020 reached 9.78 percent or as many as 26.42 million people (BPS, 2020). The government can optimize the level of generosity of Indonesians in collecting zakat funds. Even though in the Covid-19 pandemic conditions, the rate of zakat collection actually increased to 46 percent in 2020 when compared to 2019 (Kompas, 2020; Hudaifi and Beik, 2021). This shows that the Indonesian people have a good level of obedience in carrying out religious orders and at the same time show a high social spirit. Table 1. Zakah Organization in Indonesia (LAZNAS) No Zakah Organization No Zakah Organzation No Zakah Organization 1 Rumah Zakat 10 Al-Azhar 19 Griya Yatim & Duafa 2 Daarut Tauhid 11 Baitulmal Muamalat 20 Darul Quran 3 Baitul Mal Hidayatullah 12 LAZIS-NU 21 Baitul Ummah 4 Dompet Duafa 13 Global Zakat 22 AQL 5 Nurut Hayat 14 LAZISMU 23 Mizan Amanah 6 Inisiatif Zakat Indonesia 15 Dewan Dakwah 24 Yatim Indonesia 7 Yatim Mandiri 16 PP Islam 25 Wahdah Islamiyah 8 Ukhuwah Islamiyah 17 Rumah Yatim Ar- rohman 26 Hadji Kalla 9 Dana Sosial Al-Falah 18 Kesejahteraan Madani 27 Djalaludin Pane Source : ppid.baznas.go.id Besides BAZNAS, the management of zakat funds in Indonesia is also carried out by the National Zakat Institute (LAZNAS). LAZNAS is a zakat organization managed independently by the community. The existence of LAZNAS really helps the government and BAZNAS in International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 118 collecting zakat funds. LAZNAS's contribution in collecting zakat funds in Indonesia reaches 40 percent of the total national zakat revenue (Insight, 2019). Until 2019, there are 572 zakat management organizations that have been authorized and have obtained permits, consisting of 491 BAZNAS and 27 LAZNAS and 54 LAZDA. In 2019, the total zakat funds collected will be IDR 10.2 trillion, where most of the distribution was allocated for humanitarian social programs amounting to 36.9 percent, for da'wah by 25 percent, for education 19.3 percent, for the economy 13.5 percent and for health as much as 5.2 percent (PUSKAS-BAZNAS, 2021). The presence of two zakat management organizations, namely BAZNAS and LAZNAS, is certainly a challenge for the manager, especially for LAZNAS. They must have a superior program that can be used as a barometer for muzakki to be willing to distribute their zakat funds to their institution, without the trust of muzakki, it is impossible for LAZNAS to continue running the organization's operations. One of the superior programs owned by BAZNAS and LAZNAS is the mustahiq empowerment program. The purpose of empowering mustahiq is to create economic independence for mustahiq and in turn be able to alleviate poverty (Trianto, 2020). Mustahiq economic empowerment programs through the management of micro- business units by Zakat organizations aims to create economic independently of mustahiq. Through this program, mustahiq will get an income to buys daily needs such as food, cloth and others. Mustahiq miro-business development usually use a zakah fund scheme, where the mustahik do not need to return the funds. This scheme is often referred to as productive zakah, namely zakah funds obtained by zakah organizations for the poor in the form of business capital assistance. However, there are also zakah organizations that use CSR funds in implementing the mustahiq empowerment program (Trianto et al., 2018). To obtain maximum results, zakah management organizations provide assistance to mustahiq in the form of business capital support, training support and accompaniment business support. The problems faced in empowering mustahiq between BAZNAS and LAZNAS are relatively the same, first, related to business capital assistance. Business capital assistance for mustahiq is relatively small so it is difficult for mustahiq to turn its capital, so that it has an impact on the continuity of their business. Second, related to business training. For mustahiq who do not have business experience, the training provided by the zakat institution is not optimal due to the frequency of training and training materials that are deemed inappropriate. The third is related to mustahiq business assistance. Almost all zakah management organizations do not have a mustahiq business assistance team that is competent in providing business assistance for mustahiq. Besides not having competence, the mustahiq mentoring team is also relatively small and has other jobs in zakat management organizations. These various problems will certainly have an impact on the success of the mustahiq empowerment program. This research aims to determine the level of success of the mustahiq empowerment program carried out by BAZNAS and LAZNAS in Pekanbaru City, Indonesia. Although research related to mustahiq empowerment has been carried out by many previous researchers such as (Trianto et al., 2020), (Furqani et al., 2018), (Fauziyah Taufiq et al., 2018), (Rahmi Adilah et al., 2018), (Romdhoni, 2018), (Fikriyah & Ridlwan, 2018), (Ernawati, 2016), (Azam et al., 2014), Muhamat et al (2013), and (Alam Choudhury & Harahap, 2009), but there has not been study to investigated the mustahiq micro-business development program by comparing BAZNAS and LAZNAS programs and this study was conducted to fill this gap. By knowing the level of success of the program of both, we can International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 119 provide an important suggestion to zakah organizations on mustahiq micro-business development. This study will contribute in the development of zakah organization in Indonesia by implementing the theory of organizational support for non-profit oriented organization development by (Rhoades & Eisenberger, 2002). Rhoades & Eisenberger (2002) state that the aims of organizational support is to increasing the maximum performance of employee. In the context of mustahiq empowerment program, the zakat organization support will help the mustahiq in build their micro-business well. 2. Research Method The respondents of this study were the mustahiq who received empowerment programs from BAZNAS Pekanbaru City and LAZNAS in Pekanbaru City, Indonesia. LAZNAS which is the object of research is Dompet Duafa Pekanbaru and Rumah Zakat Pekanbaru. In this study, the sample was determined based on the following conditions: (1) Joined an empowerment program in 2016 – 2018, (2). Get capital assistance from zakat organizations, (3). Get business training, and (4). Get business assistance. From the predetermined criteria, the number of samples from BAZNAS is 45 mustahiq and from LAZNAS is 44 mustahiq. The research data were taken using a questionnaire using a Likert scale of 1 - 5. In this study, there are three exogenous variables, namely capital support, training support and accompaniment support. Meanwhile, there are two endogenous variables, namely the variable success of mustahiq business and success to alleviate poverty. The following is a empirical model in this study: Figure 1. Empirical Model From the empirical model built in Figure 1, two structural equations or formula are generated, namely: 1. Y1 = β1 X1 + β2 X2 + β3 X3 + ε…………………………………………………………………..……………(1) Where : Y1 = Endogenous variable or Success of mustahiq business variable β3 = Path coefficient of exogenous variable X1 β2 = Path coefficient of exogenous variable X2 β3 = Path coefficient of exogenous variable X3 X1 = Exogenous variable or capital support variable X2 = Exogenous variable or training support variable X3 = Exogenous variable or accompaniment support variable ε = Error term Training Support (X2) Accompaniment Support (X3) Capital Support (X1) Success of Mustahiq Business (Y1) Success to Alleviate Poverty (Y2) International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 120 2. Y2 = β1 Y1 + ε………………………………………………………………………………………………………….(2) Where : Y2 = Endogenous variable or Success to Alleviate Poverty β2 = Path coefficient of exogenous variable Y1 Y1 = Exogenous variable or success of mustahiq business variable The research data were analysed using path analysis. Path Analysis is a statistical technique that allows users to investigate pattern of effect within a system of variables (Allen, 2017). The aims of path analysis is to provide estimates of the magnitude and significant hypothesized causal connection among sets of variables displayed through the use of path diagram (Stage et al., 2004). In this study, data were analysed using LISREL 8.8 and SPSS 26 software. LISREL was developed to perform analysis with latent variables in Structural Equation Modelling Analysis (Hayduk, 1996), but LISREL software can also be used to perform path analysis tests (Hannessy, 1985). 3. Result and Discussion 3.1. Mustahiq Demographic The mustahiq empowerment program carried out by BAZNAS and LAZNAS in Pekanbaru City has a tend different. In this study, the mustahiq who participated in the empowerment program at BAZNAS were dominated by men, namely 27 people or 60 percent, while the female mustahiq were only 18 people or 40 percent. Meanwhile, the mustahiq empowerment program carried out by LAZNAS was dominated by women who reached 35 people or 79.55 percent, while the male mustahiq only amounted to 9 people or 20.45 percent. For more details, see Table 2. These results indicate that the patterns and types of mustahiq empowerment in Pekanbaru City are different, according to the policies of each zakat organization. Table 2. Mustahiq Gender No. Business Model Total % 1 BAZNAS - Male - Female Total 27 18 45 60,00 40,00 100 2 LAZNAS - Male - Female Total 9 35 44 20,45 79,55 100 Source: Authors Finding, 2021 The results of this study also showed that the level of education of the mustahiqs who participated in this empowerment program also tended to be different between BAZNAS and LAZNAS in Pekanbaru. The mustahiq empowerment program carried out by BAZNAS is dominated by the level of lower secondary education reaching 18 people or 57.78%, while the mustahiq who have the secondary education level and above are 19 people or 42.22 percent. Meanwhile, the empowerment programs carried out by LAZNAS were mostly followed by mustahiqs who had a secondary education level and above which International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 121 reached 23 people or 52.27 percent. Meanwhile, 21 people or 47.73 percent of mustahiq have secondary education. Table 3. Mustahiq Educational Level No. Business Model Total % 1 BAZNAS - Elementary School - Junior High School - Senior High School - University Total 11 15 18 1 45 24,45 33,33 40,00 02,22 2 LAZNAS - Elementary School - Junior High School - Senior High School - University Total 6 15 22 1 44 13,63 34,10 50,00 02,27 100 Source: Authors Finding, 2021 In terms of working capital assistance, BAZNAS and LAZNAS also have a different pattern. BAZNAS tends to provide business capital assistance in cash, where the mustahiq is made a bank account and the funds are transferred through a designated bank. Meanwhile, LAZNAS in providing business capital assistance is provided in cash through the purchase of required business equipment. Table 4 shows the amount of business assistance provided by BAZNAS to mustahiq in cash of IDR. 2,000,000/mustahiq. Meanwhile, the business capital assistance provided by LAZNAS if converted into rupiah is IDR 4,500,000/mustahiq. The results of this study indicate that the business capital assistance provided by LAZNAS is greater than the assistance provided by BAZNAS. Table 4. Capital Assistance from Zakah Organization No. Zakah Institution Average Amount Received Number of Mustahiq 1 BAZNAS IDR. 2,000,000 45 2 LAZNAS IDR. 4,500,000 44 Source: Authors Finding, 2021 Table 5 shows that the income of the mustahiq family who received assistance from BAZNAS before the mustahiq empowerment program was implemented was Rp. 412,582, while the income of the mustahiq family who received the empowerment program from LAZNAS was Rp. 290,514. On average, the income of the mustahiq family who received the empowerment program from BAZNAS had a higher income compared to the income of the mustahiq family who received assistance from LAZNAS. After running the empowerment program, there is an income for the mustahiq family of Rp. 561,701 for mustahiq from BAZNAS and Rp. 569,957. When viewed from the income of the mustahiq family, the two zakat organizations have the same ability to increase the income of the mustahiq family, but in percentage terms the programs implemented by LAZNAS have a higher percentage level of increased income when compared to BAZNAS which is 96.17 percent. International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 122 Table 5. Average Income of Mustahiq Household Before and After Empowerment No Zakah Organization Before After Increase 1 BAZNAS Rp.412.582 Rp.561.701 36,14% 2 LAZNAS Rp.290.514 Rp.569.957 96.17% Source : Author Findings, 2021 3.2. Statistics Descriptive Table 6 shows the minimum, maximum, mean and standard deviation values. The minimum value for BAZNAS is 2.00 in the X2 and X3 variables, while the maximum value is 5.00 in the X1 variable with a mean of 3.53 and a standard deviation of 0.597. This result means that the mustahiq who are respondents to BAZNAS have a tendency to provide sufficient answers. Meanwhile, respondents who have affiliation with LAZNAS tend to give better answers, namely agree. This can be seen from the mean value for each research variable where the results are close to the value 4, with the highest standard deviation is the X1 variable which is 0.939 and the smallest is the Y2 variable of 0.462. Table 6. Minimum, Maximum, Mean and Standard Deviation, Variable Minimum Maximum Mean Std. Deviation BAZNAS X1 3.00 5.00 3.53 .587 X2 2.00 4.83 3.22 .855 X3 2.00 4.50 3.05 .703 Y1 3.17 4.83 3.70 .289 Y2 2.80 4.50 3.63 .314 LAZNAS X1 1.89 5.01 4.04 .939 X2 2.48 5.14 3.99 .628 X3 2.38 5.41 4.15 .738 Y1 2.84 5.05 3.95 .524 Y2 3.09 4.95 4.06 .462 Source : Authors Finding, 2021 Table 7 shows the value of the reliability of the data used, where the composite Cronbach's Alpha value for the two organizations has a value above 0.6. This means that all statement items have a good level of internal consistency. Meanwhile, Table 8 shows the correlation between variables involved in this study. In BAZNAS, variables that have a pathway relationship have a weak correlation, for example the relationship between X1 and Y1 and the relationship between X2 and Y1. Meanwhile, the variable that has a positive and significant relationship is variable Y1 and variable Y2. Meanwhile, the correlation between variables in the LAZNAS zakat management organization has a positive and significant correlation at α 0.05 and 0.01. Table 7. Reliability Analysis Variable Cronbach’s Alpha Individual Composite BAZNAS Capital Support (X1) 0.633 0.733 Training Support (X2) 0.563 International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 123 Accompaniment Support (X3) 0.475 Success of Mustahiq Business (Y1) 0.773 Success to Alleviate Poverty (Y2) 0.793 LAZNAS Capital Support (X1) 0.870 0.796 Training Support (X2) 0.725 Accompaniment Support (X3) 0.710 Success of Mustahiq Business (Y1) 0.731 Success to Alleviate Poverty (Y2) 0.753 Source: Authors Finding, 2021 Table 8. Correlation Matrix of Among Variable Variables X1 X2 X3 Y1 Y2 BAZNAS X1 1 X2 0.663** 1 X3 0.665** 0.932** 1 Y1 0.025 0.011 0.201 1 Y2 -0.37 -0.104 0.078 0.473** 1 LAZNAS X1 1 X2 0.243 1 X3 0.314* 0.794** 1 Y1 0.312* 0.704** 0.633** 1 Y2 0.395** 0.491** 0.564** 0.669** 1 Source : Authors Finding, 2021 *. Correlation is significant at the 0.05 (2-tailed) **. Correlation is significant at the 0.01 (2-tailed) In Table 9, the VIF value for each exogenous variable is presented. According to Anderson et al. (1996), the acceptable VIF value to avoid multicollinearity is below 10. The test results show that all exogenous variables have a value below 10, meaning that the data in this study are free from cases of multicolinearity. Table 9. Multicollinearity Analysis Independent Variable VIF BAZNAS Capital Support (X1) 1.83 Training Support (X2) 7.78 Accompaniment Support (X3) 7.82 Success of Mustahiq Business (Y1) 1.00 LAZNAS Capital Support (X1) 1.14 Training Support (X2) 3.33 Accompaniment Support (X3) 2.87 Success of Mustahiq Business (Y1) 2.11 Source: Authors Finding, 2021 International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 124 3.3. Path Analysis Result Based on the results of data processing using the LISREL program, empirical facts are obtained that the variable capital support at BAZNAS has a negative and insignificant relationship with the variable success mustahiq business. Meanwhile in the LAZNAS organization, although the results are not significant, they have a positive effect, as shown in Table 10. Therefore the hypothesis proposed in this study for both BAZNAS and LAZNAS cases was rejected (Reject H1). The variable training support provided by LAZNAS has a positive and significant effect on the success of mustahiq business and therefore accepts the hypothesis stated or Accepted H2. Whereas in the case of BAZNAS the variable training support has a negative and significant effect, and therefore reject the proposed hypothesis or H2. a. BAZNAS Path Diagram b. LAZNAS Path Diagram Table 10. Path Coefficient Relationships Path Coefficients Effect Direct Indirec t Total CR BAZNAS Capital Support ---> Success of Mustahiq Business -0.04 - -0.04 0.48 Training Support ---> Success of Mustahiq Business -0.44 - -0.44 3.51* Accompaniment Support ---> Success of Mustahiq Business 0.60 - 0.60 3.95* Success of Mustahiq Business ---> Success to Alleviate Poverty 0.52 - 0.52 3.40* LAZNAS Capital Support ---> Success of Mustahiq Business 0.07 - 0.07 1.13 Training Support ---> Success of Mustahiq Business 0.46 - 0.46 3.06* Accompaniment Support ---> Success of Mustahiq Business 0.11 - 0.13 0.86 Success of Mustahiq Business ---> Success to Alleviate Poverty 0.59 - 0.59 5.70* CR* = Significant at 0.5 level Source : Authors Finding, 2021 Variable accompaniment support at BAZNAS has a positive and significant effect on the variable success of mustahiq business with a coefficient β of 0.60 and therefore the International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 125 hypothesis proposed is acceptable or Accepted H3. Meanwhile, the variable accompaniment support at LAZNAS although it has a positive relationship, the relationship is not significant. Therefore the hypothesis proposed in this study is rejected or Rejected H3. The mustahiq empowerment program carried out by BAZNAS and LAZNAS in Pekanbaru both have a positive and significant impact on poverty alleviation and therefore the hypothesis proposed is acceptable or Accepted H4. In this study, the relationship between the variables built has no indirect impact, so the resulting effect is a direct impact. In Table 10, it can be seen that the total impact is the same as the direct impact of each path. Table 11 show the summary model for each zakat organization. For the BAZNAS organization model summary, model 1 show that the coefficient determination (R2) just reach .279 or 27,90 percent and model 2 reach .224 or 22.40 percent. Meanwhile, the model 1 of LAZNAS the Coefficient determination (R2) reach 0.525 and model 2 reach 0.448. Table 11. Path Coefficient – Summary Model Model R R2 Adjusted R2 Std Error of the Estimate BAZNAS Model 1 .528 .279 .226 .25420 Model 2 .473 .224 .206 .27992 LAZNAS Model 1 .725 .525 .489 .37445 Model 2 .669 .448 .435 .34702 Source: Author Findings, 2021 3.4. Discussion The mustahiq economic provision program is an effort to give mustahiq the ability to earn income by running a micro-scale business. To support this program, zakat organizations provide assistance in the form of business capital. The results of this study indicate that the provision of venture capital by BAZNAS does not have a significant impact on the success of the mustahiq economic empowerment program and even has a negative effect with a path coefficient of -0.04. This result contradicts with by Muhamat et al (2013) where capital is a factor influencing the success of developing a micro-business conducted by mustahiq. However, Boudreaux and Nicolaev (2019) emphasize that capital is not the only factor that causes the success of a business, there are other factors that can cause a person's business to be successful, for example entrepreneurial motivation. Meanwhile, in LAZNAS zakat organization, capital has a positive effect, but not significant with the path coefficient of 0.07. The results of this study are in line with research conducted by Muhammat et al (2013), although the effect is not significant, the capital given to mustahiq to develop their micro-business has a positive effect. This means that the venture capital provided by LAZNAS to mustahiq is very useful for running their business. There are several reasons why the business capital assistance provided by BAZNAS has a negative impact. First, the capital given to mustahiq is relatively smaller when compared to the capital provided by LAZNAS. Second, BAZNAS provides business capital assistance in the form of cash so that it provides opportunities for mustahiqs to be used to buy daily necessities such as paying debts or buying food. Meanwhile, LAZNAS provides business capital assistance in the form of non-cash, thus closing opportunities for mustahiqs to use outside their micro-business needs. This result implies that the provision of capital in the International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 126 form of cash is not the right thing to give to mustahiq, because it makes it possible for mustahiq to use it outside of his business needs. The results of this study also show that the training variable provided by BAZNAS has a significant effect but has a negative effect with a path coefficient of -0.44. The results of this study are in line with (Indarti, 2020) and Muhammat et al (2013) where the training program for mustahiq has no impact on success in increasing mustahiq's business. This failure can be caused by several things, first the training program provided by BAZNAS is not in accordance with the needs of the mustahiq. This is because the training provided is more general, even though the training needs for each mustahiq business are different, some require training for marketing, business operational training to customer service training. This is the same as found by (Indarti, 2020), that training for entrepreneurs/mustahiq is not in accordance with the needs required by entrepreneurs. Meanwhile, the training provided by LAZNAS has a positive and significant impact. The results of this study are in line with research conducted by (Rahmi Adilah et al., 2018) and (Mensah & Benedict, 2010) where the training provided has made a positive and significant contribution to the success of the micro-business run by Mustahiq. This indicates that the training provided by LAZNAS is in accordance with the needs of the mustahiq in running their micro-business. This study also found that the mentoring program provided by BAZNAS had a positive and significant effect on the success of the micro-business run by Mustahiq with a path coefficient of 0.60. Meanwhile, the mustahiq mentoring program carried out by LAZNAS has a positive but insignificant effect with the path coefficient of 0.11. This indicates that the mustahiq mentoring program is a crucial program in empowering mustahiq through micro- business activities. This research is in line with research conducted by Fauziyah Taufiq et al., (2018). Meanwhile, the mustahiq empowerment program through micro-business activities carried out by BAZNAS and LAZNAS was able to alleviate mustahiq poverty with the magnitude of the β coefficient of 0.52 and 0.59, respectively. This indicates that the mustahiq empowerment program through micro-business activities is a program that must be maintained and developed more broadly by BAZNAS and LAZNAS. Overall, the results of this study illustrate that in developing micro-enterprises managed by mustahiq, the variables of capital, training and business assistance have an important role in achieving success, although in its implementation, zakat institutions have different results. The results of this study are in line with several previous researchers such as Muhamat et al (2013), (Indarti, 2020), (Rahmi Adilah et al., 2018) and (Mensah & Benedict, 2010) and Fauziyah Taufiq et al., (2018). However, this study places more emphasis on evaluating the implementation of empowerment programs at government- owned zakat institutions and community-managed zakat institutions with an organizational support theory approach. From the findings of this study, it provides the fact that the organizational support provided by the zakat institution to mustahiq is very meaningful in the success of the micro business development program run by mustahiq. The results of this study illustrate that the theory of organizational support can be implemented in non-profit oriented organizations such as zakat institutions, especially in running mustahiq empowerment programs in the context of poverty alleviation. However, the implementation of the theory has not been fully implemented, especially by BAZNAS. This is due to several things, including experience in running empowerment programs, limited funding and limited human resources. However, theory organizational support can be implemented properly by LAZNAS. For this reason, it is necessary to have efforts from the management of zakat managers to increase International Journal of Islamic Business and Economics (IJIBEC), 5(2) December 2021, 114- 129 127 understanding related to organizational support theory so that the organizational support provided provides the results that are expected. 4. Conclusion Mustahiq micro-business development carried out by zakat organizations in Indonesia is one of the agendas to increase mustahiq's income and welfare. The results of this study indicate that the support of zakat organizations in developing the micro-business of mustahiq between BAZNAS and LAZNAS has a different impact. The capital support provided by BAZNAS has a negative effect on the development of the mustahiq business. Meanwhile, the capital support provided by LAZNAS has a positive impact even though the impact is not significant. In the BAZNAS zakat organization, the training support provided to mustahiq in running its business does not have a positive effect, it has a negative effect on mustahiq business development. Meanwhile, the training support provided by LAZNAS has succeeded in providing a positive impact on the development of the mustahiq business. Accompaniment support provided by BAZNAS is able to have a positive impact on mustahiq's micro-business development. Meanwhile the accompaniment support provided by LAZNAS had a positive impact, although it was not yet significant. This indicates that the mustahiq mentoring program plays an important role in the mustahiq economic empowerment program. The mustahiq economic empowerment program through micro- business activities carried out by BAZNAS and LAZNAS has had a positive impact in alleviating poverty of mustahiq in Pekanbaru, Indonesia. 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