Abstract
This paper explores the contributions of Islamic non-governmental organizations (Islamic NGOs)
to job creation in Bangladesh, a country grappling with persistent youth unemployment and
underemployment. Utilizing Islamic social welfare theory and social entrepreneurship
frameworks, we conducted a convergent mixed-methods study of the As Sunnah Foundation’s
technical and vocational training programs (TVTP) in Khulna and Rangpur. A survey of 120
program graduates revealed that 78% secured paid employment within six months of
completion, and 65% initiated self-employment ventures—rates that substantially exceed
national averages for secular NGO training models (Rahman, 2016). Through 15 in-depth
interviews, we identified how faith-based mentoring, mosque-network mobilization, and Islamic
ethical principles such as ‘adl (justice) and ta‘āwun (mutual cooperation) enhance participant
motivation, community support, and enterprise resilience. However, the study also uncovered
governance shortcomings, notably in audit transparency and grievance mechanisms, proposing
a scalable model that integrates Shari’ah-compliant finance, vocational skills development, and
strengthened accountability structures. Recommendations are offered for policymakers, donor
agencies, and Islamic NGOs to bolster partnerships, improve monitoring and evaluation
systems, and harness digital technologies to expand program reach.
1. Introduction
1.1 Background and Rationale
Bangladesh, with a population surpassing 160 million, has made significant strides in reducing
poverty over the past three decades, achieving an average GDP growth rate of 6.5% from 2010
to 2020 (World Bank, 2021). This economic progress has lifted millions out of extreme poverty,
yet youth unemployment remains a formidable challenge. The International Labour Organization
(ILO) reported a youth unemployment rate (ages 15–24) of 12.3% in 2024, compared to an
overall national rate of 4.2% (ILO, 2025). This gap underscores structural barriers, includinglimited formal job opportunities, skills mismatches, and insufficient vocational training
infrastructure.
Non-governmental organizations (NGOs) have long played a pivotal role in Bangladesh’s
development. Secular organizations like BRAC and Grameen Bank have led efforts in
microfinance, education, and health, significantly advancing poverty alleviation and women’s
empowerment (Rahman, 2016). However, their impact on youth employment has been less
consistent. For instance, BRAC’s vocational training programs report a 45% employment
placement rate within three months of completion (Rahman, 2016), suggesting that alternative
approaches may be needed to address this persistent issue.
Parallel to these efforts, Islamic NGOs have gained prominence, leveraging Islamic principles
such as zakat (obligatory almsgiving), waqf (endowments), and Shari’ah-compliant finance to
tackle socioeconomic challenges. Over 500 registered Islamic NGOs operate nationwide,
delivering services in education, healthcare, and vocational training (Admin+07, 2020). These
organizations integrate spiritual and material objectives, aiming to provide dignified livelihoods
while fulfilling religious mandates. Despite their growing influence, empirical evidence on their
effectiveness in generating sustainable employment remains limited.
This study focuses on the As Sunnah Foundation, an Islamic NGO operating technical and
vocational training programs (TVTP) in Khulna and Rangpur. The TVTP offers six-month
courses in tailoring, electrical repair, computer operation, and poultry farming, funded through a
mix of zakat (25%), waqf endowments (40%), and donor grants (35%). By analyzing
employment outcomes and underlying mechanisms, this research seeks to illuminate the
potential of faith-based interventions in addressing Bangladesh’s youth unemployment crisis.
1.2 Research Objectives and Questions
The study pursues three primary objectives:
1. To assess the effectiveness of the As Sunnah Foundation’s TVTP in facilitating paid
employment and self-employment among marginalized youth.
2. To explore how Islamic pedagogies and community networks shape participant
motivation and enterprise success.
3. To identify governance practices that either enhance or hinder program quality and
scalability.
These objectives are guided by the following research questions:
●
Employment Outcomes: What proportions of TVTP graduates secure paid employment
or establish micro-enterprises?
●
Faith-Based Mechanisms: How do Islamic pedagogies and community networks
influence participant motivation and enterprise success?
●
Governance and Scale: What organizational governance practices strengthen or
weaken program quality and scalability?1.3 Significance of the Study
This research bridges a critical gap in the literature by offering a mixed-methods evaluation of
an Islamic NGO’s vocational training program. By combining quantitative metrics with qualitative
insights, it provides a comprehensive view of how faith-based approaches can complement or
surpass secular models. The findings are relevant to Islamic NGOs, policymakers, and
international donors seeking evidence-based strategies to enhance job creation initiatives in
Bangladesh and similar contexts.
2. Theoretical Framework
2.1 Islamic Social Welfare Theory
Islamic social welfare theory is rooted in the ethical and spiritual mandates of Islam,
emphasizing justice (‘adl), mutual cooperation (ta‘āwun), and human dignity (karāma). The
Qur’an mandates equitable wealth distribution, stating,
“The alms are only for the poor and the
needy, and those who collect them… a duty imposed by Allah” (Qur’an 9:60). This principle
underpins zakat and waqf, which serve as mechanisms for poverty alleviation and social equity.
In this framework, job creation transcends economic necessity, becoming a moral imperative.
Providing dignified work enables individuals to contribute to their communities, achieve
self-reliance, and fulfill spiritual obligations. Islamic NGOs thus position vocational training and
enterprise development as acts of social justice, aligning with the broader goal of fostering
cohesive, equitable societies.
2.2 Social Entrepreneurship in Faith Contexts
Social entrepreneurship theory explores how organizations address societal challenges by
blending market mechanisms with social missions (Santos, 2012). These entities prioritize
sustainability, scalability, and impact over profit maximization. In faith-based contexts, social
enterprises draw on religious institutions and values to enhance their legitimacy and
effectiveness.
Islamic NGOs embody a distinctive form of social entrepreneurship, integrating
Shari’ah-compliant practices with vocational training and financing. For instance, they employ
profit-and-loss sharing (mudarabah) or service-based contracts (murabaha) instead of
interest-based loans, aligning economic activities with Islamic ethics. This alignment fosters trust
and participant engagement, distinguishing them from secular counterparts.
2.3 Linking Theory to PracticeThis study posits that faith-based mechanisms—such as religious mentoring, mosque
mobilization, and zakat-funded resources—enhance participant commitment and community
support, yielding better employment outcomes than secular programs (e.g., BRAC’s 45%
placement rate; Rahman, 2016). Governance factors, including transparency in fund
management and grievance redress systems, are hypothesized to moderate these effects,
influencing program scalability and long-term success.
3. Literature Review
3.1 Islamic Microfinance and Employment
Islamic microfinance has emerged as a viable alternative to conventional microcredit in
Bangladesh. Studies report high repayment rates (95%) and enterprise survival rates of
approximately 60% within one year (Islamic Microfinance…, 2019). By avoiding interest and
employing profit-sharing models, these programs align financial incentives with Islamic ethics,
fostering borrower trust. However, challenges such as high operational costs and limited
outreach due to rigorous screening processes hinder their scale and impact on employment.
3.2 Faith-Based NGO Interventions
Faith-based NGOs (FBNGOs) have expanded globally, leveraging religious networks to deliver
social services. Chowdhury et al. (2018) reviewed 70 studies, noting FBNGOs’ ability to mobilize
resources and volunteers through faith communities. Described as “change agents,
” these
organizations benefit from deep local ties, yet quantitative assessments of their job-creation
outcomes are rare, leaving a gap in understanding their full potential.
3.3 Integrated Models of Training and Credit
Secular NGOs like BRAC have pioneered integrated models combining microfinance,
education, health, and vocational training. Rahman (2016) reports a 45% employment
placement rate within three months for BRAC graduates, demonstrating the value of
multi-service platforms. Islamic NGOs could adapt this approach, infusing it with faith-based
elements to enhance participant engagement and community support.
3.4 Zakat, Waqf, and Skill Development
Zakat and waqf are cornerstone instruments of Islamic social finance. Admin+07 (2020) found
that zakat-funded seed capital and waqf-endowed training centers yield positive socioeconomic
outcomes in Bangladesh. However, governance issues persist: only 30% of waqf institutes
conduct external audits, undermining transparency and donor trust. Effective management of
these funds is critical for scaling vocational programs.3.5 Vocational Training Efficacy
Research on secular vocational training in Bangladesh reveals mixed results.
“The Role of
NGOs in Preventing Unemployment in Bangladesh” (2018) found that BRAC initiatives reduced
village unemployment, but its small sample (n = 18) and limited scope constrain broader
applicability. Islamic NGOs, with their faith-driven approaches, may offer distinct advantages in
participant motivation and community integration.
3.6 Identified Gaps
The literature highlights several deficiencies:
●
Empirical Evaluations: Few large-scale, quantitative studies assess job outcomes of
Islamic NGO programs.
●
Governance Analyses: Standardized metrics for transparency in zakat and waqf
management are lacking.
●
Comparative Studies: Direct comparisons between Islamic and secular vocational
models are scarce.
●
Longitudinal Data: Long-term tracking of graduate employment sustainability is absent.
This study addresses these gaps by providing a mixed-methods analysis of the As Sunnah
Foundation’s TVTP, focusing on employment outcomes, faith-based mechanisms, and
governance practices.
4. Methodology
4.1 Research Design
A convergent mixed-methods design was adopted, integrating quantitative outcome analysis
with qualitative process evaluation. This approach facilitates triangulation and a deeper
understanding of the interplay between program inputs and outputs (Creswell & Plano Clark,
2011).
4.2 Study Context and Program Description
The As Sunnah Foundation operates in Khulna and Rangpur, offering a TVTP with six-month
courses in tailoring, electrical repair, computer operation, and poultry farming. Funding is
sourced from zakat (25%), waqf endowments (40%), and donor grants (35%), targeting
marginalized youth to equip them with marketable skills and employment opportunities.
4.3 Sampling and Participants●
Quantitative Survey: A stratified random sample of 120 graduates from 2019–2024
cohorts ensured representation across course types and locations.
●
Qualitative Interviews: Fifteen alumni were purposively selected, varying by enterprise
type, gender (10 male, 5 female), and program year to capture diverse perspectives.
4.4 Data Collection Instruments
●
Survey Questionnaire: Collected data on demographics, employment status, income,
and perceptions of program quality (e.g., technical skills, faith-based mentoring).
●
Interview Guide: Examined motivations, experiences with faith-based mentoring,
mosque network utilization, and governance feedback.
4.5 Data Analysis
●
Quantitative: Descriptive statistics summarized employment rates, with chi-square tests
comparing outcomes to secular benchmarks (α = 0.05). Logistic regression identified
predictors of employment type.
●
Qualitative: Thematic analysis (Braun & Clarke, 2006) using NVivo software identified
key themes from interview transcripts.
4.6 Ethical Considerations
Participants provided informed consent, and confidentiality was maintained via anonymized IDs.
The study was approved by Bangladesh University’s Social Science Ethics Committee (REF:
SS-2024-12).
5. Findings
5.1 Quantitative Outcomes
5.1.1 Employment Rates
●
Paid Employment: 78.3% (n = 94) of graduates secured paid work within six months,
significantly exceeding BRAC’s 45% rate (χ²(1) = 34.2, p < 0.001).
●
Self-Employment: 65.0% (n = 78) launched micro-enterprises, compared to ~40% in
secular programs (Islamic Microfinance…, 2019).
●
Logistic Regression: Faith-based mentoring (OR = 1.8, p < 0.01) and mosque-network
engagement (OR = 2.3, p < 0.001) predicted paid employment, with gender influencing
self-employment trends.
5.1.2 Income and Enterprise Performance●
Monthly Income: Paid employees averaged BDT 12,450 (SD = 3,200), while
self-employed graduates reported BDT 14,000 (SD = 4,500) in revenues.
●
Business Survival: 82% of micro-enterprises survived one year, surpassing the 60%
rate in Islamic microfinance studies.
5.2 Qualitative Themes
5.2.1 Faith-Based Mentoring and Motivation
Participants emphasized the motivational impact of faith-based mentoring, with Islamic
teachings on work ethics sustaining their efforts. One graduate noted,
“The sermons on halal
income gave me strength during tough times” (Interviewee #4).
5.2.2 Community Networks and Access to Resources
Mosque networks provided practical support, such as bulk purchasing and job referrals.
“The
mosque group connected me to my first client,
” said one participant (Interviewee #2).
5.2.3 Governance and Transparency Concerns
Governance gaps were evident: only 28% of respondents had seen audit reports, and 40%
were unaware of grievance processes. Suggestions included student-led oversight committees.
5.2.4 Gender Dynamics
Female graduates faced mobility barriers, mitigated by women-only classes but persisting
post-training.
“I had to start a home business due to cultural norms,
” one explained (Interviewee
#5).
6. Discussion
6.1 Comparing Islamic and Secular Models
The TVTP’s 78% employment rate far exceeds BRAC’s 45%, highlighting the efficacy of
faith-based approaches. Religious mentorship and community trust amplify outcomes, aligning
with Chowdhury et al. (2018).
6.2 Mechanisms of Effectiveness
Faith-based mentoring, mosque networks, and integrated financing drive success by enhancing
motivation, resource access, and financial support.
6.3 Governance as a Scalability LeverTransparent governance is vital for scaling. Addressing audit and grievance gaps can boost
donor trust and program replication.
6.4 Policy and Practice Implications
Recommendations include standardized monitoring, public-private partnerships, digital
platforms, and gender-responsive strategies.
6.5 Limitations
The study’s focus on one NGO and self-reported data limits generalizability. Future research
should include control groups and longitudinal analysis.
7. Conclusion
The As Sunnah Foundation’s TVTP demonstrates that Islamic NGOs can outperform secular
models in job creation through faith-based mechanisms and financing. Robust governance and
inclusive strategies are key to scaling these efforts, offering a blueprint for sustainable
employment in Bangladesh.
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●
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●
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