The Transforming Lives: The Impact of BAZNAS Microfinance on Poverty Reduction in West Nusa Tenggara

Abstract

This study aims to analyze the role of BAZNAS Microfinance Desa in alleviating poverty in the West Nusa Tenggara region. Poverty is a multidimensional issue that necessitates comprehensive solutions, including economic empowerment. BAZNAS Microfinance Desa (BMD) supports micro-entrepreneurs through funding and mentorship, with the objective of enhancing the income and economic independence of mustahik. This research employs descriptive qualitative methods, utilizing data collection through interviews and observations. The findings indicate that the BAZNAS Microfinance Desa program significantly contributes to increasing the income and welfare of mustahik; however, challenges related to access to capital and business development persist. This study reinforces the critical role of BAZNAS Microfinance Desa in facilitating poverty alleviation and highlights the necessity for augmented support and training for entrepreneurs to ensure the sustainability of the program. Furthermore, this initiative greatly assists mustahik in enhancing their business productivity, as it imposes no interest on loans. Additionally, the program plays a vital role in developing the skills and capabilities of mustahik through mentorship and entrepreneurship training.

Keywords: Zakat, Poverty, BAZNAS Microfinance, West Nusa Tenggara