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

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  • Reazul Islam

    (School of Business and Social Sciences (SBSS), Albukhary International University (AIU), Alor Setar 05200, Kedah Darul Aman, Malaysia
    Department of Doctoral Studies, Narxoz University, Almaty 050035, Kazakhstan)

  • 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)

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.

Suggested Citation

  • Reazul Islam & Mustaffa Omar & Mahfuzur Rahman, 2023. "Islamic Social Funds to Foster Yunusian Social Business and Conventional Social Enterprises," Administrative Sciences, MDPI, vol. 13(4), pages 1-10, March.
    • Handle: RePEc:gam:jadmsc:v:13:y:2023:i:4:p:102-:d:1113051
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    References listed on IDEAS

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    1. Thomas Goda & Özlem Onaran & Engelbert Stockhammer, 2017. "Income Inequality and Wealth Concentration in the Recent Crisis," Development and Change, International Institute of Social Studies, vol. 48(1), pages 3-27, January.
    2. Necati Aydin, 2015. "Islamic social business for sustainable development and subjective wellbeing," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(4), pages 491-507, November.
    3. Necati Aydin, 2015. "Islamic social business for sustainable development and subjective wellbeing," International Journal of Islamic and Middle Eastern Finance and Management, Emerald Group Publishing Limited, vol. 8(4), pages 491-507, November.
    4. Jabbar Sehen Issa & Mohammad Reza Abbaszadeh & Mahdi Salehi, 2022. "The Impact of Islamic Banking Corporate Governance on Green Banking," Administrative Sciences, MDPI, vol. 12(4), pages 1-20, December.
    5. Andriyani, Lilik & Usman, Nurodin & Pambuko, Zulfikar Bagus, 2020. "Antecedents of Social Funds Productivity of Islamic Banks in Indonesia," OSF Preprints 258jk, Center for Open Science.
    Full references (including those not matched with items on IDEAS)

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