ZAKAT INSTITUTIONS AND SUSTAINABLE DEVELOPMENT: AN EVALUATION OF ENTREPRENEURSHIP PROGRAMs IN YOGYAKARTA

Abstract

This study examines the role of zakat institutions in promoting sustainable development through entrepreneurship-based programs in Yogyakarta, Indonesia. As zakat is one of the key instruments in Islamic social finance, its proper management has the potential to address poverty, reduce inequality, and contribute to the achievement of Sustainable Development Goals (SDGs). Employing a qualitative case study approach, data were collected through in-depth interviews, observations, and document analysis from selected zakat organizations in Yogyakarta. The findings reveal that entrepreneurship programs implemented by zakat institutions have significantly improved beneficiaries’ economic capacity, enhanced financial literacy, and strengthened community resilience. However, several challenges remain, including limited institutional capacity, lack of sustainable mentoring, and insufficient integration with government programs. This study contributes to the growing literature on Islamic social finance by highlighting the potential and limitations of zakat-based entrepreneurship as a tool for poverty alleviation and sustainable development.