The Role of Sharia Microfinance in SMEs Business Development

Erna Herlinawati, Riyandi Nur S, Amir Machmud

Abstract

This study aims to identify and analyze the development of SMEs after receiving financing from Sharia Micro Finance Institutions. Business development measured by sales volume. The research method used descriptive method by comparing business condition between before and after receiving financing. The population of this study are the recipients of financing from sharia micro finance institutions with a sample of 30 people obtained using simple ramdom sampling technique. The result of the research shows that the development of SMEs business in Indonesia is 67.5 percent influenced by the role of Islamic microfinance institutions, especially in financing, sdangkan the rest of 32.5 percent influenced by variables that are not examined This finding implies that to improve the prosperity of SMEs can use financial institutions as a solution in overcoming financial problems. In addition, the importance of government in disseminating the existence of Islamic microfinance institutions to SMEs especially in the face of the era of competition.

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Paper Citation


in Harvard Style

Herlinawati E., Nur S R. and Machmud A. (2017). The Role of Sharia Microfinance in SMEs Business Development.In Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE, ISBN 978-989-758-308-7, pages 230-233. DOI: 10.5220/0006883802300233


in Bibtex Style

@conference{iceee17,
author={Erna Herlinawati and Riyandi Nur S and Amir Machmud},
title={The Role of Sharia Microfinance in SMEs Business Development},
booktitle={Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,},
year={2017},
pages={230-233},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0006883802300233},
isbn={978-989-758-308-7},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 2nd International Conference on Economic Education and Entrepreneurship - Volume 1: ICEEE,
TI - The Role of Sharia Microfinance in SMEs Business Development
SN - 978-989-758-308-7
AU - Herlinawati E.
AU - Nur S R.
AU - Machmud A.
PY - 2017
SP - 230
EP - 233
DO - 10.5220/0006883802300233