ABSTRACT

 The issue of poverty still becomes a major world issue presently. Millennium Development Goals (MDGs) declares the eradication of poverty by 2015. Many programs have been conducted by the Indonesian government, but the number of poor in the country is still 31.7 million people (BPS, 2012). Zakat is an economic islamic instrument relevan to proverty alleviation. Some studies have been done recommended that it should be managed productively, so that the poor become not poor anymore (Adiwijaya, 2008). It takes a model of SMEs empowerment through qardul hasan financing by Bazda in Central Java. This study uses is mix approach, qualititative and quantitative. The first phase is dominated by in-depth interview and questionnare as guided question to the respondent to find the right model of SMEs empowerment. The findings of the first phase of the study indicate that the SMEs empowerment model of through qardul hasan financing by BAZDA requires assistance, training management skills, innovation and marketing assistance. Thus, model is expected to improve the performance of micro-business targeted by Bazda. The findings of the second phase of the study indicate that the SMEs empowerment through qardul hasan financing (the findings of the first stage) positively influences the performence of SMEs tergeted by Bazda. The Bazda managers respond positively on the model generated in the first stage, and in its implementation, it still needs assistance process mustahik that recieve qardhul hasan financing.

Keywords: Poverty, Financing, Small and Medium enterprises, Performance