The role of Baitul Maal Wa Tamwil in enhancing micro-businesses through mudharabah financing

Abstract

This research is based on the background that micro businesses have a strategic role in creating job opportunities and helping the country's economy. During the economic crisis that occurred in Indonesia, many large companies went bankrupt because they were hit by debt, but during this crisis, micro businesses were able to survive bankruptcy, this was because the capital used by micro businesses was very small. Micro business capital through BMT is considered very appropriate because BMT uses a profit-sharing system that does not burden business actors. The aim of this research is to analyze the role of baitul maal wa tamwil in improving micro businesses through mudharabah financing. The research method used is qualitative descriptive by describing phenomena and existing literature. The results of this research show that micro business performance development can develop with several factors such as coaching and supervision. Mudharabah financing is financing that is very suitable for micro businesses. So, it is hoped that mudharabah financing will play a role in developing the performance of micro businesses. Thus, BMT's role as an Islamic microfinance institution that handles the lower-level sector must carry out continuous quality improvement. The introduction of an Islamic economic system needs to be done so that people do not get trapped in the flow of usury. BMT must take serious action to increase ideal financing, namely mudharabah financing to become financing for micro business actors. The image of mudharabah financing must be reclaimed so that the Islamic economic system can run well. The more micro-enterprises will directly help economic growth in Indonesia. Muslims will be more independent in their economic life. And it will improve the lives of Indonesian people because job opportunities will increase and become very extensive.