THE INFLUENCE OF COLLABORATION OF ISLAMIC FINANCIAL INSTITUTIONS ON STRENGTHENING VILLAGE MICROECONOMICS
DOI:
https://doi.org/10.63736/jc.v2i1.598Keywords:
Islamic Financial Institutions; Micro-Economy; Financing; Rural AreasAbstract
This study focuses on the impact of collaboration between Islamic financial institutions and the strengthening of micro-economies in rural areas. In contexts where micro-entrepreneurs often face limited access to financing, Islamic financial institutions emerge as an alternative that offers a fairer financing system through the principle of profit and loss sharing. The methodology employed in this research is a qualitative approach using case studies, which includes in-depth interviews, participatory observation, and document analysis. The aim of the study is to identify effective collaboration models and develop strategies to enhance cooperation between Islamic financial institutions and other stakeholders. The findings indicate that 75% of respondents report increased ease in accessing financing, enabling them to expand their businesses and improve their products. However, challenges in understanding Islamic financial products persist, highlighting the need for better educational programs. Support from government and non-governmental organizations is also crucial in building a conducive ecosystem for micro-enterprises.
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