Aimatul Yumna, Joan Marta, Ramel Yanuarta RE
Purpose: This study aims to examine the impact of social and financial inclusion on the welfare of the impoverished through a Waqf-based microfinance organization. Design/methodology/approach: This study used a structured questionnaire to collect primary data from 282 respondents, 150 of whom were customers and 132 of whom were not customers of an Indonesian Waqf-based microfinance organization. The impacts of financial and social inclusion on well-being were examined using generalized least squares with random effects. Findings: This study discovered that financial inclusion has little influence on customer well-being, but it significantly improves the well-being of non-customers. Social inclusion, on the other hand, has a major influence on improving the well-being of consumers but has little effect on noncustomers. This study demonstrates that financial and social inclusion have varied effects on the well-being of two distinct groups of respondents. Practical implications: These findings have significant implications for Waqf-based microfinance to restructure its programs to enhance financial inclusion by promoting financial literacy and developing partnership with commercial financial institutions. Originality/value: Previous study examined into qard hassan’s contribution to financial inclusion and well-being, but the impact of social inclusion on well-being has received less attention. Thus, the objective of this research is to understand how financial and social inclusion might improve the well-being of Waqf-based microfinance customers. © 2025, Emerald Publishing Limited.
Department of Management, Universitas Negeri Padang, Padang, Indonesia; Department of Economics, Universitas Negeri Padang, Padang, Indonesia
