Islamic Social Funds to Foster Yunusian Social Business and Conventional Social Enterprises

Reazul Islam (), Mustaffa Omar and Mahfuzur Rahman
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Reazul Islam: School of Business and Social Sciences (SBSS), Albukhary International University (AIU), Alor Setar 05200, Kedah Darul Aman, Malaysia
Mustaffa Omar: School of Business and Social Sciences (SBSS), Albukhary International University (AIU), Alor Setar 05200, Kedah Darul Aman, Malaysia
Mahfuzur Rahman: Department of Finance & Economics, College of Business Administration, University of Sharjah, Sharjah 27272, United Arab Emirates

Administrative Sciences, 2023, vol. 13, issue 4, 1-10

Abstract: This paper proposes an integrated, comprehensive financial model that can provide startup capital to socially committed business ventures, such as social enterprises and Yunus Social Business (YSB), by using Islamic social funds (ISFs), Zakat (almsgiving), Waqf (endowments), Sadaqat (charity), and Qard Hasan (interest-free benevolent loans). The literature review method was adopted to explain this model’s architecture, applications, implications, and viability. On the basis of logical reasoning, it concludes that ISFs can yield greater social wellbeing if utilised in SEs and YSB than in unconditional charity because both business models work for social betterment in entrepreneurial ways while remaining operationally self-reliant and economically sustainable. Additionally, ISFs can complement Yunus Social Business’s zero-return investment approach to make it more robust towards social contributions. The implementation of the model orchestrated in this paper would enhance societal business practices and, hence, scale up social wellbeing while helping rejuvenate pandemic-stricken economies. It paves the way for new research too.

Keywords: Islamic social funds; Yunus Social Business; social enterprise; value-based intermediation; COVID-19 (search for similar items in EconPapers)
JEL-codes: L M M0 M1 M10 M11 M12 M14 M15 M16 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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