Jurnal Ilmiah Al-Syir'ah
Vol 17, No 1 (2019)

Strengthening the MSME Through Institutional Cooperation Improvement Between MSME and Sharia Microfinance Institutions (SMFI)

Darsono Darsono (Universitas Diponegoro)
Darwanto Darwanto (Universitas Diponegoro)



Article Info

Publish Date
30 Jun 2019

Abstract

Micro, Small and Medium Enterprise (MSME) is one of the pillars of the national economy because of the magnitude of the contribution made by MSME. It is even mentioned that MSME is an integral part of the country's economy. MSME in Indonesia is able to absorb the labor up to 97.02%. The contribution of MSME to GDP (57.08%) and investment (53.24%) also has a larger value when compared to large businesses. But in general, MSME has limited access to financial institutions. By these problems, the government has provided special financing of MSME through Microfinance Institutions (MFI). But in its implementation, externally MFI has obstacles of institutional aspects that have an impact on the variety of the MFI forms. While SMFI has Islamic financing methods that give priority to moral, ethical, and fair so efficiently it can encourage the participation of MSME entrepreneurs to succeed. This study formulates schemes or strengthening models of MSME to increase institutional cooperation between MSME and SMFI. The institutional strengthening scheme offered is expected to increase the contribution of MSME to the national economy.

Copyrights © 2019






Journal Info

Abbrev

JIS

Publisher

Subject

Education Languange, Linguistic, Communication & Media Law, Crime, Criminology & Criminal Justice

Description

Jurnal Ilmiah Al-Syir'ah, with registered number ISSN 1693-4202 (Print), ISSN 2528-0368 (Online) is a peer-reviewed journal published twice a year in June and December by Faculty of Sharia, State Islamic Institute of Religious Affairs (IAIN) Manado. Jurnal Ilmiah Al-Syir'ah is a Communication Media ...