Enhancing Financial Management Practices for Zakat Micro-entrepreneurs in the New Normal through Impact Focused Framework: A Conceptual Paper

Abstract

The zakat micro-entrepreneurs (ZME) programs aim to improve mustahiq’s (beneficiaries) standard of living and
well-being. Its effectiveness depends on mustahiq’s wisdom in managing finances. The objective of this study is to
conceptually discuss on the development of an impact-focused framework for the mustahiq using the financial
management practices (FMP) as a quality intervention program. The research framework of this study is built on the
Theory of Change and Logic Model that posited quality of intervention contributes to a series of outcomes and
intended impact. This study discusses three propositions. First, the best FMP as a quality intervention for the ZME.
Second, a social impact measurement framework for ZME programs and third, the description of the data collection application using mixed-methods for the proposed framework. The outcomes of this study will benefit zakat institutions in evaluating the effectiveness of zakat funds in improving the well-being of the mustahiq.