Promoting business zakah as a product of Islamic finance to fund social causes for well-being of the underprivileged: evidence from Bangladesh

Abstract

Purpose

This study aims to look into the scope of exploring and promoting business zakah for the enhancement of the well-being of the underprivileged in society.

Design/methodology/approach

This is mainly a qualitative research conducted using both primary and secondary data. Primary data have been collected from 34 business entrepreneurs in Bangladesh through semi-structured in-depth interviews. The secondary data have been collected from annual reports with a view to calculating business zakah of five business enterprises for providing an indicative picture of prospective volume of business zakah in Bangladesh. Finally, collected qualitative data have been analyzed thematically following the due procedures with a view to addressing the research questions.

Findings

The findings reveal that around thirty five percent of sample entrepreneurs have used business zakah fund for fully and partially financing their social projects. It also reveals that on average annual business zakah fund amounts to nearly 144m BDT (around US$1.7m) per business enterprise. These findings bear clear witness that business zakah has extensive scope and promising prospect to be an instrument of financing social projects aimed at ensuring social well-being of the disadvantaged.

Practical implications

The findings of this research can be used as a guide to promote business zakah to finance social programs aimed at ensuring the well-being of the underprivileged of all societies particularly of Muslim countries representing one-fourth of the world population.

Originality/value

Exploring and promoting business zakah as an initiative of broadening the base of zakah is an innovative move and net addition to the literature of Islamic finance. It contributes greatly to the poverty alleviation movement in the sense that Muslim business entrepreneurs will now find their business zakah fund readily available to finance their social projects aimed at ensuring well-being of the impoverished.

Citation

Hoque, N. (2023), "Promoting business zakah as a product of Islamic finance to fund social causes for well-being of the underprivileged: evidence from Bangladesh", Journal of Islamic Marketing, Vol. 14 No. 4, pp. 966-987. https://doi.org/10.1108/JIMA-10-2021-0337