The Influence of Zakat Support, Motivation, Networking and Training on the Business Performance of Asnaf Entrepreneurs in Kedah

Abstract

The involvement of asnaf entrepreneurs in micro-size, non-structured entrepreneurial activities, is an effort to support their families. The sustainability and performance of their business is important to generate income and hopefully elevate them from poverty. The objective of this study is to examine the relationship of non-finance resources and the performance of micro-size business, such as zakat support, motivation, networking and training. The study population consist of 73 asnaf entrepreneurs who received business supports from the Kedah Zakat Board only. The questionnaire consists of 31 items distributed to 49 respondents using purposive sampling and self-administration to the respondents' residences. Interview data was also obtained to support the study's findings. Descriptive analysis and Partial Least Squares Structural Equation Modelling were employed to answer the research questions. Qualitative data was analyze manually using excel to triangulate and support the findings. The findings showed that only motivation had significant relationship with performance of this micro-size business. Practical implications towards providing support in the form of motivation and providing entrepreneurial coaching, advice and mentoring are recommended to this group.  This research provides insight on how support service could help zakat recipients to improve income earn through entrepreneurship activities.