This chapter describes the background of company Johor Corporation, Wakaf Dana Niaga, and entrepreneurship component in Wakaf Dana Niaga. The first portion of chapter explains about the background of Johor Corporation. Meanwhile the 2nd portion explains a brief background of Wakaf Dana Niaga as Islamic Corporate Social Responsibility- Endowment. Finally for the last portion of this chapter, job statement, aims, research hypothesis, and range of survey are described.
1.2.BACKGROUND OF JOHOR CORPORATION
Via Johor Enactment No. 4 1968 ( as amended under Enactment No. 5, 1995 ) , Johor Corporation ( JCorp ) was recognized as a public endeavor and a constitutional organic structure and as a State Investment Corporation, JCorp places among the nation’s largest multinationals, with nucleus concern sectors covering Palm Oils, Foods and Quick Service Restaurants, Specialist Healthcare Services, Hospitality, Property & A ; Logistic/Services every bit good as Intrapreneur Business ( Johor Corporation, 2011 )
This research is based on Corporate Social Responsibility applied by JCorp under disposal of WANCorp. WANCorp is stand for Waqaf An-Nur Corporation Berhad, and it is a limited company established to assurance proper direction of Johor Corporation and its Group of Companies’ stocks and assets under gift. WANCorp serves as ‘Maluku Alibi’ to stocks and other signifiers of the company’s security that has been put under gift as a whole. WANCorp is besides in authorization on behalf of Johor Corporation’s Corporate Social Responsible enterprises to carry through Waqaf An-Nur Hospital ( HWAN ) & A ; concatenation of clinics ( KWAN ) , Waqaf Dana Niaga, Waqaf Brigade and subsidizing to the populace through ‘fi sabilillah’ benefit sharing. The ‘fi sabilillah’ benefit sharing programme by Waqaf An-Nur has coped to profit patients’ public assistance, livelier mosques, entrepreneurial and educational programmes. Contributions were besides stretched internationally through Somalia Humanitarian Aid and GAZA Humanitarian Fund. For the twelvemonth 2011, WANCorp issued RM945,502.13 for part committednesss and ‘fi sabilillah’ benefit sharing ( Johor Corporation, 2011 ) .
1.3.WAKAF DANA NIAGA
The important country will be discuss in this research is Waqaf Dana Niaga, one of the duty of WANCorp. Waqaf Dana Niaga is a hard currency gift plan whereas WANCorp is prepared and organized fund for enterprisers to screen out the concern and pay back without any involvement, wholly clear from riba and gharar. Wakaf Dana Niaga is the describing of hard currency gift or wakaf, while WANCorp public presentation as Microfinance Institution. In other words, hard currency wakaf is used as strategic investing in alleviating poorness and economic lack every bit good as instruction, wellness and research and microfinance about does the same ( Adam, 2013 ) . It’s public presentation non such as bank loan, or other fiscal establishments that gain the net incomes from giving the fund to the borrowers. Mention to Shukri Adam et. Al ( 2013 ) , microfinance is the fiscal services for unfortunate and low income clients offered by dissimilar types of services suppliers. The type of services are be capable to on the establishment that giving the fund, on what intents. But in this instance, WANCorp is responsible as microfinance establishment that gives the fund to hapless and low income client based on the consecutively concern affair. The clients should be enterprisers that derive from different concern background. Here is fond regard of the procedure of hard currency gift theoretical account for Islamic MFI ;
Figure.1.1. Procedure of Cash Endowment Model for Islamic MFI( Lahsasna, 2009 )
From the figure above, the procedure is get downing with presence of Waqaf laminitis, which is in this circumstance, an organisation viz. as Johor Corporation, and assignment of legal guardian as fund director is duty of WANCorp. WANCorp has implemented many types of corporate societal duty such as build infirmary, and clinics, but in this hard currency gift for enterprisers, there must has one specific direction squad that supervising the programme from get downing procedure until finish. Cash Endowment under Wakaf Dana Niaga will be an investing of the financess in equity or known as debt funding to the borrowers. Masyita ( 2003 ) stated that the micro funding plans which use loss net income sharing are one of the most important sectors for poorness relief. Those investings are divides by two type of hazard investing which are high hazard investing and low hazard direction. High hazard investing has Musharakah and Mudarabah basicss. Musharakah means relationship recognised under a contract by the joint consent of the parties for sharing of net incomes and losingss, originating from a common endeavor or venture and net incomes shall be spread in the proportion reciprocally agreed in the contract. [ 2 ] Its easy defined as profit-loss sharing. Mudarabah refers to the payment of a specific sum of money to a individual who uses it for concern and makes a net income from it, or an investing. [ 3 ] While low hazard supervising has Murabaha and Ijarah elements. Murabaha refer to the sale of goods at a monetary value, means borrower should pay back loan construct and it’s free from riba and gharar while Ijarah means occupancy, rent or pay. By and large, the Ijarah theory refers to selling the benefit of usage or service for a fixed monetary value or pay [ 4 ] .
Figure.1.2. Structure of Cash Waqaf Account Fund Mobilization and Investment
( Ahcene Lahsasna et. Al 2009 )
Refer to Ahcene Lahsasna ( 2009 ) , figure above shows the agreement of hard currency wakaf history fund mobilisation and investing that used in SME Microfinance in Malaysia. Cash Waqaf that organize by WANCorp is known as parts gifts, by giving hard currency capital under ‘Card Hassan’ platform, and the money will administer to hapless people and needy. This hard currency is belong to private proprietor which mean Johor Corporation, and has legal guardian ( WANCorp ) who’s responsible to pull off the money. The legal guardian can be an proprietor or person else. Since this hard currency wakaf is charity programme ; the net income from investing must impart to charity excessively. The basic statement of those, who opposed the hard currency wakaf was based on a apparently powerful point: one time endowed, the principal of a wakaf belongs to Almighty Allah ( Shukri Adam et. Al,2012 ) . The hard currency wakaf will administer to the borrowers, which are destitute and hapless people. But what belongs Allah, the resistance argued, can non administer to 3rd individuals ( Shukri Adam et. Al, 2012 ) . Below, the figure is about Prof. Murat Cizacka’s theoretical account of hard currency wakaf shows in what manner the gross would be channelled to microfinance establishments.
Figure.1.3. How Revenue Should be Channel to MFI ( Murat Chizacka )
Cash wakaf is a signifier of movable wakaf belongings which is structured by money with the taking intent to be in service for spiritual and charitable undertakings for the people for the interest of Allah ( Shukri Aam et.Al, 2012 ) . On the other manner, the net incomes advantage from investing is used for any other committednesss such as wage public-service corporations, contribution, and salary and invests once more as hard currency wakaf.
The enterpriser in this platform have selected by the board of managers before they can take portion in the Waqaf Dana Niaga plan. They should be Muslims and have some criterions that pass the regulations and ordinance specified by WANCorp since based on one-year study, 532 applications were accepted nevertheless merely 272 were approved by top direction to acquire concern loan. The appliers originated from many topographic points all around Johor and Negeri Sembilan. Once, entrepreneurship can be the capableness and preparedness to develop, set up and pull off a concern guess along with any of its hazards in order to do a turnover [ 5 ] . Entrepreneurship is a patterned advance of sorting and preparatory a concern undertaking, obtaining and forming the needed resources and capturing both the hazards and awards associated with the venture. Entrepreneurs used their accomplishment to syndicate many beginnings such as land, labor, natural resources, and capital so that they can bring forth the net incomes. They are required strong inner ego that categorized by invention and risk-taking, and is important portion of ability to win in the concern and has competitory component globally.
Entrepreneurship component in this plan Wakaf Dana Niaga is WANCorp give the fund to the individual that has involvement to make concern covering, based on their concern background, after do some research about the potency of their concern. Generally, entrepreneurship is the procedure of finding different methods of uniting resources. When the market value produced by this new mixture of resources is greater than the market value these resources can bring forth elsewhere separately or in some other combination, the enterpriser creates a net income.
Presently, the chief job related with implementing wakaf agreement by many organisation in Malaysia is the low creative activity rate of successful enterpriser from the plan, spontaneously the consequence is the company became loss in capital and has unwanted influence on the fund given after provided some sum of money to the enterprisers, and aim of the company to be successful in wakaf plan is unattainable.
The chief aims of research are:
•To explore the most critical success factor of enterprisers from Wakaf Dana Niaga
•To place the being of Islamic Microfinance can back up the success of the enterprisers.
1. What is the most critical success factor of enterprisers from microfinance plan?
2. Is the being of Islamic microfinance back uping the success of enterprisers?
1.9.SCOPE OF RESEARCH
This research is study about three critical factors that can be a motivation of enterprisers to be successful, which are psychological and personal accomplishments, direction accomplishments and preparation, and external environment. These three critical factors of entrepreneur’s success were developed by Benzing. Besides that, the research worker besides wants to analyze the impact of the being of microfinance in assisting the entrepreneur’s success. The questionnaires were distributed to enterprisers from Wakaf Dana Niaga to accomplish existent informations associated with aim of research.
1.10.ORGANIZATION OF THESIS
This thesis has been prepared to give inside informations on the facts, observations, statements, and information in order to run into its aims. Chapter one by and large gives the brief background of the company Johor Corporation, background of Wakaf Dana Niaga, entrepreneurship component, the job statement, aims, research inquiry, and range of research. Chapter two presents the literature reappraisal of Corporate Social Responsibility, wakaf as fiscal responsible and critical factor of success enterprisers in that plan, and besides future chances are being discussed. Chapter three carries out the presentation of elaborate work done during this research.