Determinants of Murabahah Financing for Microfinance

Abstract

This study aims to analyze the determinants of the decision of micro and small entrepreneurs in the culinary sector in choosing murabaha financing through microfinanace. The subjects of this study are micro and small entrepreneurs at microfinanace. The sample of this research is 100 micro and small entrepreneurs of the culinary sector members of microfinanace which were taken using convenience sampling method. Data collection techniques using questionnaires and documentation. The analysis technique used in this study is exploratory factor analysis. This study will formulate 20 indicators obtained from the preliminary test and then reduced to a factor or variable. The variable to be examined is the decision of micro and small entrepreneurs in the culinary sector in choosing murabaha financing through the microfinanace. The stages of the research method are the preliminary test, library study, and the main test conducted on 100 micro and small entrepreneurs in the culinary sector members of microfinanace. The results of this study indicate that there are five factors that influence the decision of micro and small entrepreneurs in the culinary sector in choosing murabaha financing through microfinanace. These factors include service convenience factors, factors of compensations, trust factors, microfinanace image factors and professionalism factors. Funding also impacts micro and small entrepreneurs, both in terms of Madiyah welfare and spiritual welfare. The impact of financing from the Madiyah welfare side can be shown by an increase in business income. In terms of spiritual welfare, the financing of microfinanace has helped increase the worship of micro and small entrepreneurs.