This article examines the impact of Islamic social finance in eradicating poverty through the provision of financial capital assistance from zakat funds via microcredit to asnāf entrepreneurs by Baitul Mal Aceh (BMA). In Malaysia, the provision of free financial capital assistance from zakat funds to asnāf entrepreneurs often encounters challenges. This study investigates how BMA’s financial capital assistance contributes to the success of asnāf entrepreneurs. Data from interviews with 16 asnāf entrepreneurs were thematically analyzed to understand the impact of financial capital assistance on their business startups and overall economic empowerment. The analysis indicates that financial capital assistance significantly helps provide initial capital for business startups, thereby increasing additional capital. It also offers more flexible loan repayment terms, stimulates entrepreneurial spirit among asnāf entrepreneurs, and provides opportunities to enhance income, ultimately contributing directly to poverty eradication efforts. The discussion suggests that BMA’s microcredit model effectively empowers asnāf entrepreneurs and alleviates poverty. This highlights the need for structured financial support within Islamic social finance frameworks and recommends that similar models be adopted by the State Islamic Religious Council (SIRC) in Malaysia. 

KEYWORDS
Poverty, financial capital assistance, asnāf entrepreneurs, Islamic social finance 

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