Abstract

In Malaysia, the number of people living in hardcore poverty, has decreased from 0.7% in 2009 to 0.2% in 2012. Many organizations have been set up to provide continuous support to these ‘unfortunate group’ to elevate their living standards through business activities via Capital Assistance Programme. One of the organizations is known as Selangor Zakat Board (SZB). In 2003, SZB has introduced “Asnaf Entrepreneurial Program” to facilitate selected hardcore poor to start a small business. This study aims to examine factors that influence the effectiveness of capital assistance programme. Based on 55 asnaf who received capital assistance to start small scale business in 2003 the finding discovered that level of religiosity and business experience significantly influence the effectiveness of capital assistance programme.

Keywords:

Asnaf entrepreneurs , principle of maqasid al-shari, zakat organizations,

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