Analysis Of Social Return On Investment In Umkm Mentoring Program: Case Study Of Distribution Of Akad Foundation Zakat Funds Through Baitulmaal Muamalat

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play an important role in supporting economic growth and employment, yet many MSME actors continue to face limitations in business capital, managerial capability, and access to sustainable business development. Productive zakat programs can address these constraints by integrating financial assistance with structured mentoring and capacity development. This study aims to examine the effects of MSME assistance programs, zakat fund distribution, business capital, and beneficiary capacity on the improvement of Social Return on Investment outcomes in the MSME empowerment program implemented by Akad Foundation through Baitulmaal Muamalat. This study employed a quantitative explanatory approach using questionnaire data collected from 117 MSME beneficiaries of productive zakat programs. The relationships among the research constructs were analyzed using Partial Least Squares Structural Equation Modeling. The findings show that MSME assistance programs and zakat fund distribution have positive but insignificant effects on SROI improvement. In contrast, business capital and beneficiary capacity have positive and significant effects on SROI improvement, with beneficiary capacity emerging as the most influential determinant. These findings indicate that the effectiveness of zakat-based MSME empowerment is not determined solely by the provision of assistance and the distribution of funds, but largely depends on beneficiaries’ ability to manage, utilize, and develop the resources received. Therefore, zakat institutions should prioritize capacity-oriented empowerment through relevant training, continuous mentoring, productive capital support, and needs-based program evaluation to generate sustainable social and economic impact.