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Zakat & Waqf: Impact on Women and Community Development | 11
© Zakat & Waqf: Impact on Women and Community Development
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their economic situation. It should be more than adequate to address
the issues with poverty that Malaysian Muslims face. We think that
various development initiatives to benefit the Muslim ummah might
be started with the money raised from this Zakat collection.

ROLE AND FUNCTIONS OF ZAKAT

INSTITUTION IN WOMEN
ENTREPRENEURSHIP
The Zakat system has effects on both micro- and macroeconomic
factors. In the former, it is claimed that zakat has positive benefits on
people's saving and investing behaviour while having no negative
impact on work efforts. Additionally, positive macroeconomic effects
are anticipated to affect a few areas, such as allocative efficiency, wealth
and income distribution, economic development, social security, and
the elimination and stabilisation of poverty. The following points can
be used to clarify the tasks and functions of the zakat institution.
Entrepreneurship is the most critical factor in predicting a successful
start-up (Amin, M, 2014).

Women entrepreneurs are a key engine of economic growth, creating
new employment for themselves and other, providing solution to
business problems, limitations, and maximising opportunities for
entrepreneurship (Robinson, S., 2001). Therefore, it is important to
identify how an individual becomes an entrepreneur and to encourage
interest in the study of entrepreneurship and investigate these factors
relevant to development if women entrepreneurship (Hossain, A. et.al,
2009). Women’s empowerment has been seen as a necessary condition
for poverty reduction in developing countries around the world.
Female entrepreneurship has grown and is making major contribution
to economic activity and reducing unemployment. However, many
entrepreneurs are faced with obstacles from the start or when they are

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