The role of Islamic finance in social entrepreneurship based on zakat, sadaqah and qard and a model proposal

This thesis seeks to explore the social, economic, and moral values underlying the concepts of zakāh, ṣadaqah, qarḍ, and other participatory finance instruments, and to investigate their potential for social entrepreneurship. In addition, the study proposes a model for how these concepts can be transformed into a supportive mechanism for social entrepreneurship through participatory finance. In the first chapter, the conceptual framework and fundamental elements of participatory finance are presented, and participatory social finance instruments are examined in detail. The social and economic benefits these instruments bring to society are researched comprehensively. This chapter also describes in detail the basic principles that frame the operating mechanisms of participatory finance and distinguish it from the conventional financial system. The second chapter discusses the concept of social entrepreneurship, its characteristics, its beneficial effects on social development, and successful models implemented around the world. The following chapter delves deeply into the potential of participatory finance instruments in the field of social entrepreneurship. In the fourth chapter, a social entrepreneurship model based on zakāh, ṣadaqah, and qarḍ al-ḥasan is proposed. Within the scope of this model, it is shown how rural development can be supported through education, project, and marketing assistance for farmers, as well as how social entrepreneurship can be developed in another area. This thesis aims to contribute to social development by more effectively employing participatory finance instruments such as zakāh, ṣadaqah, and qarḍ al-ḥasan in the field of social entrepreneurship.