EXPLORING THE ROLE OF ZAKAT IN BRIDGING THE WEALTH GAP
Keywords:
Zakat, poverty alleviation, zakat empowerment initiatives, business growth, Zakir wealth, PLS-SEM, zakat foundations, poverty reduction, inequality, IndiaAbstract
This study investigates the influence of zakat empowerment initiatives on the wealth of zakat beneficiaries (Zakirs), focusing on business growth as a mediator variable. The data from 186 Indian zakat foundations involved in various empowerment programs are analyzed using Partial Least Square Structural Equation Modelling (PLS-SEM). Results indicate that zakat empowerment significantly increases Zakirs' wealth and contributes subsequently to their business growth. Furthermore, we observe that Zakir wealth and business assistance positively impact company growth, rendering them critical mediating variables. This study also examines the impact of internal and external factors, such as GRDP, age, inflation, and educational attainment, on the generation of Zakirs’ wealth. Our findings support the substantial role of zakat empowerment programs in bolstering Zakirs’ wealth and suggest their potential for reducing poverty and inequality in India
