Does the asnafpreneur programme workable in Sabah?

WHEN an option is available, everyone is sensibly decided to become rich whilst he is still young to acknowledge personal dignity that upholds well-being to a high level. Irrationality is a price when it is not in tandem with a Shariah parameter.

Paradoxically, there are usually three layers of society. Varying levels of “abilities” in terms of education, expertise and experience (3Es) have led to these bands and for that effective social measures are quintessential for check and balance.

First, one may find an individual who is rich due to the inheritance, energetic involvement in equities sectors and more importantly their imaginative and dedicated efforts that have resulted in the great impact of social escalations.

Second, one may acknowledge that the majority of society is sourced from modest individuals who earn amply above their basic needs derived from tasawwur lifestyle that is moulded for balanced spending, donation and savings.

Third, one may also realise that in our social circle, some individuals are struggling to make a better living and considered poor and needy folks that add little flavour to our life but extra spice in their life.

The first and second groups are typically muzakki (zakat payers) who pay the tithe to zakat institutions for wealth redistribution. The mustahiq (zakat recipients) consequently will deserve the fraction of the shared wealth and their poor quality of life derived from the confined poverty is curbed from a vicious circle.

As such, two questions are answered. Q#1 – What makes a successful asnafpreneur programme? Q#2 – What are the issues realised if the programme departs?

The term asnafpreneur refers to a mustahiq who runs a business according to the Islamic teachings, rulings and ethical values through a self-reliant income breeding platform, sponsored and advised by zakat institutions.

The benefits are global than domestic. The reasons are three-fold but are not confined to these interpretations.

Benefit #1 – Asnafs can earn income-based effort in which the earnings obtained are not capped by someone – instead the earnings depended on how much efforts that they have invested provided a hardworking is exercised.

Benefit #2 – Asnafs can become practitioners and owners. They have complete control to run the business according to Shariah parameter besides the Allah’s (SWT) blessing for balanced falah in this world and the hereafter.

Benefit #3 – Asnafs will have their own identity which makes them outstanding for social dignity. They can have their products shaped by the frame of potential branding and trademark for personal achievement.

Somehow, the running of asnafs businesses is challenging owing to lack of financial sources and poor business knowledge. Still, if all designed formulas are applied as planned with dedicated business action, the reward is surely greater.

We clarify five key factors that lead to the successful asnafpreneur programme but subject to future research as follows.

First, every business effort needs adequate business education – customised according to the types of asnafs businesses. The appropriate educational measure should be implemented for success. Besides, an effective business plan that covers objective, products, strategies and the SWOT analyses should be exposed to asnafs as a guide.

Second, the mentor-mentee approach is imperative towards the formation of great character as an ideal asnafpreneur. The offered cogent advice and consultation when needed drawn from well-versed and experienced business characters in our social circle are equally important and the sharing of experiences is built on waqf basis.

Third, the inculcation of justice in every business setups is primarily led to repeat patronage for extended demand and improved profit. Asnafpreneurs should acknowledge their customers via a fair transaction, improved customer service, reliable product and more importantly ethical values are in practice.

Fourth, the matching factor that defines asnafs according to their business interest is also another reason. When the business meets one’s character, the peace of mind is extended to capture improved income generation, strengthened family well–being and after all the ability to generate own assets using their bare hands and sustained food supplies are greater; and

Fifth, the digitalisation of asnafpreneur programme is an impulse.

The tapping into internet potentials is advantageous for a wider customer base at improved price harmonisation. Technical advice and consultation pertinent to this indicator can ensure the organisation of online business is correctly placed for improved visibility.

Starting the programme is somehow mixed blessings. At one point, asnafs find businesses as challenging due to unknown pathway sourced from 3Es poverty. On the other hand, if the fear is controlled and the right things are cultured, the reward can be deeper covering satisfaction in life and dignity intensification. Theoretically, perseverance is the key.

With a ceteris paribus, a primary concern when encouraging asnafs to unlock their potentials into the venture is the pessimistic mindset. Of course, this is relatively a mental poverty that hurts self-development. A mindset therapy is timely important and relevant. The elderly, the disabled and the lame are excluded.

Business is dealt with people, planet and profit for the customer, business environment and performance, respectively. Changing in consumers’ preference out of pandemic sprung from the conflicting human reasons along with increased competition can affect the asnafs business earnings and so do the confined new partaking in the programme becomes wider.

Going forward, a possible suggestion to develop an asnafpreneur mall is an alternative way to jack up the business culture among asnafs but subject to profound research to conclude its possible implementation.

Every investment demands effort to succeed similar to asnafs businesses. Emotional intelligence along with the good business plan, risk mitigation techniques and do the right thing (EPRR) can promise the programme is reputably rewarding.

Besides, the balanced investment in the programme can be of flourishing via the holding of empathy for every measure taken for great results. To sum it up in a single line – asnafpreneur programme in Sabah is feasible. Only time will tell whether we made the right decision or not, at least.

ACKNOWLEDGMENT: This writing is based on research funded by the Center for Research and Innovation, Universiti Malaysia Sabah (UMS) – SDK0246-2020. *The author is an Associate Professor at the Labuan Faculty of International Finance, Universiti Malaysia Sabah, Labuan International Campus. He has a PhD from the International Islamic University Malaysia (IIUM) in Islamic Banking and Finance (PG310163). He can be contacted at hanudin@ums.edu.my