Sharia Cooperative Financial Inclusion and Entrepreneurial Orientation To Improve Sharia-Based MSME Empowerment New Normal Era In Malang City

Raisa Fitri Raisa Fitri,Aniek Murniati

doi:10.21070/jbmp.v7i1.1226

Abstract

The problem that is faced by Islamic boarding school-based MSMEs is capital constraints. This capital constraint is due to the lack of information on MSME actors about how to apply for credit and how to utilize financing funds. Financial inclusion can be realized, there is a need for parties who have direct contact with the community, especially the lower middle class in terms of distributing micro credit. Therefore, the role of sharia banking and sharia cooperatives needs to be increased to increase the growth of MSMEs in Malang City, especially Sharia-based MSMEs so that financial inclusion can be realized. Based on the results of a survey conducted through the Cooperatives and MSMEs Offices, there are about 25 Sharia cooperatives with several criteria, namely cooperatives in Malang City that are legal entities. The multiple regression was chosen to be carried out in this research activity. The results of the study show that the good performance of an MSMEs can be seen from its entrepreneurial orientation because the increasing spirit of entrepreneurial orientation will motivate MSMEs to make innovations and be ready to face all possible risks in the future.

Highlights

Credit for MSMEs has increased annually due to support from banks that distribute loans to micro, small and medium enterprises (MSMEs)
In this case the government has the responsibility as a provider or channel of people's business credit or what is known by the acronym Kredit Usaha Rakyat (KUR) through Islamic banking which needs to be run
East Java Sharia Banking Assets in April 2018 increased by 19.25%, which was supported by Dana Pihak Ketiga (DPK) funds of 19.45% and financing increased by 17.8%

Summary

INTRODUCTION

Credit for MSMEs has increased annually due to support from banks that distribute loans to micro, small and medium enterprises (MSMEs). The role of Islamic financial institutions has not been optimal in terms of distributing MSMEs loans because of their relatively high costs (Anggraeni & Herlinawati, 2019) In this case the government has the responsibility as a provider or channel of people's business credit or what is known by the acronym Kredit Usaha Rakyat (KUR) through Islamic banking which needs to be run. The role of Islamic banking and Islamic cooperatives needs to be increased, the growth of MSMEs in Malang City especially Sharia-based MSMEs so that financial inclusion is realized. The low action and motivation of MSME actors, in average MSMEs actors only motivate to use their income to fulfill their daily needs without thinking about how to develop their business and how to innovate This condition requires the role of Sharia Cooperatives so as some MSMEs have pilot projects. The strong character of business actors and the spirit of always innovating are needed to increase entrepreneurial orientation

LITERATURE REVIEW

Findings

DISCUSSION

CONCLUSION