Zakah and its Utilization as Working Capital for Micro, Small and Medium Enterprises

Zakah is an obligation that is directly mandated by Allah in the holy Quran. Zakah is assumed as a solution to overcome the poverty in Indonesia if it is well organized and well utilized. The focus of this study is how to empower zakah productively by distributing zakah fund in the form of working capital to mustahik. This study uses descriptive method that is decribing the condition or facts finding with proper interpretation. The result of the study shows that they are many zakah management agencies practice productive zakah model by distributing the working capital to mustahik so that they are able to change their social status to be muzakki. It can be concluded from this study that productive zakah by giving working capital for the micro, small and medium enterprises is an alternative way and effective effort which get them out of the poverty chain to be independent in economic matters.