Model Design of Sociopreneurship: Halal Based-Development of Micro, Small and Medium Enterprises Through Zakat Institutions

Abstract

Purpose — This study aims to examine the extent to which halal branding and digital media utilisation affect consumer behaviour. It also intends to provide an overview of the sociopreneurship model—a model that targets both financial and social benefits, while also working to solve problems in the community—to empower micro, small and medium enterprises (MSMEs) through the use of halal branding and digital media managed by zakat institutions. Design/Methodology/Approach — In the first stage, this study employs a quantitative approach to analyse the factors of digital use and halal branding in influencing consumer behaviour. In this respect, multiple linear regression was used to analyse 172 research respondents. In the second stage, it uses a qualitative approach in designing a sociopreneurship model based on the results of the first stage. Findings — This study found that religiosity and halal branding have a positive and significant effect on Muslim interest in buying halal products. In addition, the factors of price, religiosity and halal branding also positively and significantly affect satisfaction in consuming halal products. The sociopreneurship model can be applied to zakat institutions to facilitate MSMEs in developing product quality through halal branding and digital utilisation. Originality/Value — The unique characteristic of this study lies in the use of both the quantitative and qualitative approaches in carrying out this research. It is hoped that the model offered in this study will be able to develop the MSME sector to keep abreast of modern trends despite the limited capital available to such institutions. Research Limitations/Implications — The sample used in this study was restricted to Indonesia, with a limited number of respondents. Moreover, data collection was conducted through questionnaires without in-depth interviews with consumers, MSMEs and zakat institutions. Practical Implications — The zakat institution’s scheme or model of sociopreneurship will be beneficial for the modern development of MSMEs even though they possess limited capital. Zakat institutions provide three types of assistance: 1) direct monitoring that starts from production inputs to the production process and which continues to the distribution process to ensure that the products developed by the fostered MSMEs are truly halal; 2) assistance at the digital marketing stage; and 3) assistance in accessing loan funds under qarḍ ḥasan (benevolent loans) schemes. Social Implications — This research has a social impact on the development of MSMEs through the implementation of the concept of sociopreneurship. In this case, MSME actors who are classified as donation recipients can turn into donors, which would assist in reducing poverty levels. Therefore, social and business benefits will be achieved through the modern development of MSMEs.