SWOT Analysis on Interest Development of Cash Waqf of Moslem

Productive Age Entrepreneurs in Surabaya

Fitryani and Atina Shofawati

Postgraduate School, University of Airlangga, Surabaya, Indonesia

Keywords: Cash Waqf, SWOT, Moslem Entrepreneur, Age Productive

Abstract: The potential of cash waqf in Surabaya is very large due to the majority of Surabaya population who are

Moslem and in productive age. The problem of interest in cash waqf becomes a phenomenon that is quite

interesting to be studied. Cash waqf is one of the forms of waqf which in practice makes it easier for

entrepreneurs of productive age and the potential to empower the waqf. SWOT analysis is the systematic

identification of various factors to formulate the company's strategy. This analysis is based on the logic that

can maximize strength (S) and opportunities (O), but simultaneously can minimize weakness (W) and threat

(T). Waqf is either source of potential social funds that are closely related to the prosperity of the people in

addition to zakat, infaq and alms. As a matter of fact, learning religion becomes the main motivation of

society to waqf. This research is descriptive analytic research. The population in this research is Moslem

productive age entrepreneurs in Surabaya. The sampling technique used in this research is purposive

sampling, the technique of determining the sample with certain considerations, while as sample is taken 99

respondents. The focus of this research is the development of cash waqf on Moslem productive age of

entrepreneurs in Surabaya. The results of the research show that variable opportunities or chance have the

most dominant influence on the development of interest in cash waqf in Surabaya, so that with this great

opportunity to be an alternative for productive age entrepreneur to do cash waqf.

1 INTRODUCTION

Surabaya is the second largest city in Indonesia that

has a heavy activity in daily life. This is provided by

the population of the city of Surabaya according to

Central Bureau of Statistics (Badan Pusat

Statistik/BPS) for 2,853,661 people with a

comparison between men and women are 1,430,985

people for men and 1,422,676 people for women

with significant population growth rate due to many

immigrants or inhabitants reside in Surabaya. This

growth has both positive and negative impacts.

From the positive side, one of them is the

population growth in Surabaya increased so that the

economic growing development is also increasing.

However, the growth of the population also has a

fairly serious negative side of the unemployed

productive age. Unemployed productive age has a

tendency to not have a settled job, so Surabaya as

the city of choice to earn a living or living, has a big

enough living needs compared to other cities.

If the productive age is unemployed, it has the

opportunity to entrepreneurship independently, thus

creating wider employment opportunities for the

other job seekers. Aside from the cost of living is not

small, entrepreneurs have other encouragement. For

example, trade is the advice from the Prophet

Muhammad in search of fortune.

Trading is 9 of the ten doors of fortune which has

been narrated by the Prophet in searching for the

blessings of fortune during life. The results of

trading can be utilized for survival and do not rule

out the provisions as Muslims are set aside for zakat,

infaq and alms. During this time, in Indonesia has a

little understanding related to zakat, infaq, and alms.

According to Indonesian Waqf Board (Badan

Wakaf Indonesia, 2011), waqf is one source of

potential social funds that are closely related to the

welfare of the people in addition to zakat, infaq and

alms. It is understood since religious teachings are

the main motivation for the community to represent.

As one of the religious institutions closely related to

socio-economic, waqf has greatly assisted the overall

development in Indonesia, both in human resource

development and in the social resources

development. Waqf has various kinds, one of them

210

Fitryani, . and Shofawati, A.

SWOT Analysis on Interest Development of Cash Waqf of Moslem Productive Age Entrepreneurs in Surabaya.

DOI: 10.5220/0007540202100213

In Proceedings of the 2nd International Conference Postgraduate School (ICPS 2018), pages 210-213

ISBN: 978-989-758-348-3

cash waqf. Cash waqf is a gift in the form of money.

When connected in this era of globalization, cash

waqf includes stocks, checks and other securities.

2 LITERATURE REVIEW

2.1 Cash Waqf

Cash waqf for Muslims is new. This can be observed

with the birth of the Indonesian Ulama Council's

fatwa on the money waqf set on May 11, 2002. The

Law on waqf itself was also recently approved by

the President on 27 October 2004. This law

represents a new milestone for the management of

waqf which previously organized in Government

Regulation number 28 year 1977 and Compilation of

Islamic Law book III (Ali, 2006: 98-101).

Cash waqf in Religious Department definition

(Djunaidi, 2007: 3) is waqf by a person, group of

people, and institution or legal entity in the form of

money. Waqf cash is one of the forms of waqf

submitted by a wakif to nadzir in the form of cash,

while the definition of waqf issued by the Fatwa

Commission of Indonesian Council of Ulama (2003:

85) dated May 11, 2002, when releasing a fatwa on

money waqf namely:

"Keeping assets that can be exploited without the

disappearance of the object or principal, by taking

legal action against the object (selling, giving, or

inheriting it), to be distributed (the result) on

something mubah (not haram) that exist.”

2.2 Productive Age Entrepreneur

According to Hisrich et al., In Wijanto (2009: 3)

entrepreneurship is a process of creating something

new and valuable, utilizing the effort and time

required, taking into account social, physical and

financial risks, and receiving rewards in the form of

money and satisfaction personal and independence.

According to Coulter (Suryana and Kartib, 2011:

25), entrepreneurship is often associated with the

process, the establishment or growth of a new

business oriented to the acquisition of profits, value

creation, and the creation of new and innovative new

products or services.

Zimmerer (Kasmir, 2011: 20) states that

entrepreneurship is a process of applying creativity

and innovation in solving problems and finding

opportunities to improve the life (effort). Therefore,

it is born entrepreneurs or entrepreneurs who can

create something new, valuable, and business

oriented so as to generate profits that are generally

done by the productive age between 15 to 64 years.

Therefore, the results of entrepreneurship are

expected to productive age entrepreneurs can do

waqf in cash.

According to Freddy Rangkuti (2009: 18) SWOT

analysis is the identification of various factors

systematically to formulate corporate strategy. This

analysis is based on the logic that can maximize

strength (S) and opportunities (O), but can

simultaneously minimize weakness (W) and threats

(T). According to Kotler (2009: 51), SWOT

Analysis (Strength, Weakness, Opportunity, Threat)

is a way to observe the external and internal

marketing environment.

According to Gitosudarmo (2001: 115) the word

SWOT is an approach which can be translated into

strengths, weaknesses, opportunities and threats. The

translation is often abbreviated to "OUTLET". In the

above explanation when associated with a company.

However, attributed to the interest of a productive

Muslim entrepreneur in this study is the SWOT in

the development of interest in cash waqf.

3 RESEARCH METHOD

This research is descriptive analytic. The population

in this study is entrepreneurial Muslim entrepreneurs

in Surabaya. The sampling technique used in this

research is purposive sampling, the technique of

determining the sample with certain considerations,

while the sample is taken as much as 99

respondents. Independent variables are strength,

weakness, opportunities and threat while the

dependent variable is the development of interest in

cash waqf. The Analysis data includes test validity

and reliability, descriptive analysis, multiple linear

regression analysis and classical assumption test.

The significance level in this research is 0,05. This

research was conducted in Surabaya. This study is

limited to productive age entrepreneurs in Surabaya

so that the scope of the study is smaller and limited

so that the results cannot be known widely the

potential of cash waqf in the group of subjects with

large amounts. It is recommended for subsequent

research so that the object being studied more

widely so that the data obtained more.

SWOT Analysis on Interest Development of Cash Waqf of Moslem Productive Age Entrepreneurs in Surabaya

211

4 RESULTS AND DISCUSSION

This is a description result of the research along with

respondent’s response related to variable of strength,

weakness, opportunities, threat and interest

development of cash waqf in Surabaya:

Table 1: Variable of strength, weakness, opportunities,

threat and interest development of cash waqf.

Variable

Mean

Strength (X1)

Weakness (X2)

Opportunities (X3)

Threat (X4)

Interest Development of

cash waqf (Y)

3,85

3,52

3,65

3,54

3,78

This table shows us that respondent response

average about Strength (3,85) weakness (3,52),

opportunities (3,65), threat (3,54) and interest

development of cash waqf (3,78) from class interval

included in category of 3,41< x ≤ 4,20 which show

respondent are giving agree value into question

about strength, weakness, opportunities, threat and

interest development of cash waqf.

In a regression equation it must be BLUE (Best

Linier Unbiased Estimator), meaning that decision

making through t test should not be biased. To

produce a BLUE decision, it must be fulfilled with

some basic assumptions (classical).

The multi-collinearity test aims to test whether in

the regression equation found the correlation

between independent variables. Good regression

model should not occur correlation between

independent variables. The Variance Inflation Factor

(VIF) according to Ghozali (2011: 105) is the

detection of the absence of multi-collinearity which

has the following condition:

a. VIF value less than 10 point

b. The tolerance number more than 0,10 point

Then to find out whether the model of structural

equation produced does not occur autocorrelation, it

can be tested by Durbin-Watson. From the statistical

calculation results obtained Durbin-Watson value of

1.952. Durbin-Watson values obtained are located

on the criterion 1.66 ≤ D-W ≤ 2.34 means that the

model of structural equations can be concluded there

is no autocorrelation.

Detection of heteroscedasticity according to

Ghozali (2011: 139), if the distribution of the points

is above and below the zero on the Y axis and does

not form a clear pattern, then heteroscedasticity does

not happen.

Table 2: Partial Result Each Variable

No.

Variable

t count

t table

Sig

Strength

2,093

1,986

0,039

Weakness

2,397

1,986

0,019

Opportunities

5,675

1,986

0,000

Threat

3,691

1,986

0,000

1. Partial Test Influence Variable Strength Against

Development of interest in cash waqf.

From table 19 we get the sig value. Strength

variables ≠ 0.039 <0.05 (level of significance),

then H0 is rejected and H1 is accepted. Thus the

influence of Strength on the development of the

cash waqf interest of Moslem entrepreneurs in

waqf is significant.

2. Partial Test of Effect of Weakness Variable on

Development of cash waqf interest.

From table 8 we get the sig value. Weakness

variables ≠ 0.019 <0.05 (level of significance),

then H0 is rejected and H1 is accepted. Thus the

influence of Weakness on the development of

cash waqf interest in Surabaya Endowments

Board is significant.

3. Partial Test of the Influence of Variable

Opportunities on the Development of cash waqf

interest.

From table 8 we get the sig value. Opportunities

variables ≠ 0,000 <0.05 (level of significance),

then H0 is rejected and H1 is accepted. Thus the

influence of Opportunities on the development of

cash waqf interest in Surabaya Endowments

Board is significant.

4. Partial Test of Effect of Threat Variables on

Development of cash waqf interest.

From table 8 we get the sig value. Threat

variables ≠ 0,000 <0.05 (level of significance),

then H0 is rejected and H1 is accepted. Thus the

effect of Threat on the development of cash waqf

interest in Surabaya Endowments Board is

significant.

Table 3: Model Summary.

R Square

Adjusted R

Square

Durbin

Watson

.709

0.502

0.481

1,9

a Predictors: (Constant), Threat, Weakness,

Opportunities, Strength

From the table above, it is known that R square

(R²) of 0,502 or 50,2% indicate contribution or

contribution from Strength, weakness, opportunity,

and joint treatment variable toward development of

waqf cash interest in Waqf Board Surabaya is big.

ICPS 2018 - 2nd International Conference Postgraduate School

212

While the remaining 49.8% is contributed by other

factors.

Multiple correlation coefficient is used to

measure the closeness of the relationship between

Strength, weakness, opportunity, mutual treatment

together towards the development of cash waqf

interest in Waqf Board Surabaya. The coefficient of

multiple correlation is shown by (R) of 0.709 or

70.9%. These results indicate that the correlation or

relationship between independent variables are

together towards the development of cash waqf

interest in Surabaya Endowments Board has a close

relationship.

This study is limited to productive age

entrepreneurs in Surabaya so that the scope of the

study is smaller and limited so that the results cannot

be known widely the potential of cash waqf in the

group of subjects with large amounts. It is

recommended for subsequent research so that the

object being studied more widely so that the data

obtained more.

5 CONCLUSION

From the test results of the influence of each

independent variable is partially known that all

independent variables consisting of the variable

strength, weakness, opportunity and threat partially

significant effect on the development of interest in

cash waqf. Therefore, the research hypothesis that

the variable strength, weakness, opportunity and

threat partially significant effect on the development

of interest in cash waqf in Surabaya is acceptable.

Then to know the most dominant variable among

other independent variables that affect the dependent

variable is by looking at the ranking or the greatest

value of the beta-standard coefficients. It appears

that the sequence of variables that have the greatest

beta value is the opportunity (X3) with a beta value

of 0.436. Thus it can be seen that the variables of

opportunity (X3) have the most dominant influence

on the development of cash waqf interest in

Surabaya, so that with this great opportunity to be an

alternative productive age entrepreneurs to make

cash waqf and facilitate in its distribution.

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