Islamic Social Business Model in Enhancing Community Welfare: A Maqashid Shariah and Sustainable Economy Approach

Abstract

Islamic social business has emerged as an alternative economic model that integrates Shariah principles with social responsibility to promote inclusive economic growth and community welfare. Unlike conventional businesses that focus on profit maximization, Islamic social businesses emphasize ethical entrepreneurship, equitable wealth distribution, and sustainable economic development. This study explores the fundamental principles, models, and impacts of Islamic social business by analyzing key financial instruments such as waqf, zakat, infaq, and Islamic microfinance, which serve as alternative funding sources for social enterprises. Additionally, the research examines the role of Islamic cooperatives and crowdfunding in supporting financially underserved communities. By employing the Maqashid Shariah framework, this study evaluates the contributions of Islamic social business in poverty reduction, economic empowerment, and financial inclusion. The findings highlight the challenges and opportunities in developing Islamic social businesses, including regulatory constraints, financial literacy gaps, and digital transformation. The study concludes that the integration of Islamic financial mechanisms with technological advancements can enhance the sustainability and scalability of Islamic social businesses, ultimately contributing to socioeconomic justice and sustainable development.