<![CDATA[This study addresses the stagnation of mustahik (zakat recipient) transformation into muzaki (zakat payer) due to low entrepreneurial value addition in productive zakat programs. Despite significant potential, many mustahik businesses remain stuck in basic production with minimal innovation. This research aims to analyze the implementation of productive zakat at BAZNAS Pasuruan Regency, identify supporting and inhibiting factors, and formulate a distribution model based on entrepreneurial value addition. Employing a qualitative case study approach, data were collected through in-depth interviews with BAZNAS officials and four diverse mustahik clusters, participant observation, and documentation. Findings reveal that while zakat capital improves basic welfare, its impact on status transformation remains suboptimal due to limited intensive mentoring and low business literacy. Supporting factors include strong institutional commitment, while geographic access and lack of specialized partnerships act as barriers. This study proposes the "Integrated Entrepreneurial Ecosystem Model," a five-pillar framework emphasizing transformative paradigms, multi-stakeholder synergy, and context-specific mentoring. This research contributes a novel "Sustainable Entrepreneurial Value Added" formula, shifting the zakat distribution focus from mere financial aid to building a holistic entrepreneurial ecosystem, providing a practical roadmap for zakat institutions to accelerate the mustahik-to-muzaki transition.]]>
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