The Effectiveness of Productive Zakat Distribution in Improving the Economy of the Mustahiks through Business Development at BAZNAS Pekalongan City

Abstract

This study aims to examine the distribution system of productive zakat at BAZNAS Pekalongan City and to assess its effectiveness in improving the welfare of mustahik through business development. During the period 2018–2022, zakat collection at BAZNAS Pekalongan City increased significantly, reflecting a growing public awareness in fulfilling zakat obligations. However, the proportion of productive zakat distribution remains relatively small compared to consumptive zakat. In fact, well-managed and sustainable productive zakat has excellent potential to help mustahik increase their income and achieve economic independence, thereby contributing to poverty reduction efforts. This research employs a qualitative approach with a field research design to obtain a clear and realistic picture of the implementation of productive zakat distribution. Data were collected through interviews, observation, and documentation, and their validity was ensured through source triangulation. The data were analysed systematically through the stages of data reduction, data presentation, and conclusion drawing. The findings indicate that the distribution of productive zakat at BAZNAS Pekalongan City is carried out through two patterns: traditional productive assistance (business equipment support) and creative productive assistance (business capital support), distributed through three mechanisms to mustahik. However, the program’s effectiveness has not been fully optimised, as there are still gaps between targets, implementation, and outcomes. Therefore, strengthening mentoring and program evaluation is necessary to ensure that productive zakat can more effectively promote the sustainable economic independence of mustahik.