Concept Of Profit Research Articles

ANALYSIS OF THE ECONOMIC EFFICIENCY OF LOCATIONS IN THE FIELD OF TRADE AND THE INFLUENCE OF EXTERNAL FACTORS ON IT

The relevance of the article lies in the description of the process of data analysis and modeling for solving the placement problem. The main purpose of the research work is to solve the problem of location and assess the degree of influence of the geographical characteristics of locations on the indicators of the economic efficiency of the organization. The article defines the concepts of economic efficiency and profit, as well as how they are related to each other. A number of tasks are described in solving the placement problem. Questions regarding the geographic data used and the formation of the target variable are covered in detail, namely, the questions are answered. What? How? Why? What-what factors can be used to identify the potential of a location. How is the processing of data on store revenues to the final form of the target variable, why such transformations are needed. The process of correlation analysis and feature selection for the subsequent stage of modeling is shown. The course of building the model and assessing its accuracy is described. And also the analysis of the residuals for the best combinations was carried out using the methods of non-parametric statistics. The main tools in the process of solving these problems were the Python programming language and its libraries pandas, numpy, scikit-learn, xgboost, hyperopt, statsmodels, scipy, matplotlib, seaborn. The result of this research work is the constructed machine learning models to determine the economic potential of a location.

Tingkat Literasi Pasar Modal (Studi Pada Dosen Fakultas Ekonomi UMN Al Washliyah Medan)

The purpose of this study is to find out how the capital market knowledge owned by lecturers, how to know the types of capital market investment instruments, how to know the level of capital market investment benefits, owned by lecturers how to know the level of investment risk owned by lecturers of the Faculty of Economics and how the design model for optimizing capital market literacy for lecturers Faculty of Economics UMN AL Washliyah. Abstract is a short summary of the paper to help the reader quickly ascertain the purpose of the study and match the research needs. The type of data used in this study was primary data, which was obtained directly from respondents. The total population and respondents in this study were permanent lecturers of the Faculty of Economics, totaling 60 respondents. The data analysis technique used in this study used frequency distribution. The results showed that the lecturer's understanding of Investment Knowledge in the Capital Market was still not optimal (understanding good categories). Things that are not well understood are about parties who have excess funds between the public or companies, the still mixed concept of profits obtained by investment instruments in the capital market and banking, and the form of stock investment risk in the form of not getting dividends and the possibility of bankruptcy for companies that have go public.

INTERCONNECTION OF THE ORGANIZATIONAL AND ECONOMIC MECHANISM OF ENSURING PROFITABILITY AND SUSTAINABLE DEVELOPMENT

The article is devoted to examining of the relationship between the organizational and economic mechanism of ensuring profitability and sustainable development. The organizational and economic mechanism for ensuring profitability is critically important for the implementation of the company`s tactical and strategic goals. The modern economic system is characterized by the variability and dynamism of processes, which requires business entities to permanently search for reserves to improve their economic activities. In such conditions, it is extremely important for enterprises to organize the process of ensuring the profitability of activities with a view to sustainable development, which, in addition to benefits directly for enterprises, also brings benefits for society. The definition of the essence of the concept of profitability is systematized and the author`s view on the concept of profitability is given. The concept of sustainable development is defined as a concept of enterprise management, which consists of three important components, namely: ecological, social and economic development. Definitions of the profitability mechanism and the organizational and economic mechanism are given. The relationship between the group of specific tasks of the mechanism for ensuring profitability and the main components of sustainable development is substantiated. A complex of scientific approaches to building an effective organizational and economic mechanism for ensuring profitability is singled out. The diagram of the organizational and economic mechanism for ensuring the profitability of the enterprise is presented, represented by economic levers, which consist of: innovative and investment measures, financial and credit mechanism of regulation, insurance and taxation, pricing and motivational mechanism; organizational levers, which consist of: the organization of management activities, the planning system, marketing activities, foreign economic relations, leasing and rental mechanisms. The profit management process is singled out as one of the important factors contributing to sustainable development of the enterprise. The application of an organizational and economic mechanism based on the principles of sustainable development contributes to balanced and harmonious development and improves the competitiveness of the enterprise in the long term.

KEKUATAN PEMBANGUNAN EKONOMI MENGUBAH MAKNA EKONOMI KOMPARATIF MENJADI KEKUATAN EKONOMI KOMPETITIF

Economic development aims to increase people's purchasing power by increasing their standard of living with employment opportunities that can be supplemented by local jobs, especially jobs that have a national impact on the economy, for other activities, and are expected to improve people's lives. Economic thought was born from the abolition of goods which, according to its founders, were deemed useless - ceteris paribus. The concept of competitive advantage is not the same as the concept of profit, the concept of profit is not the same as the concept of absolute value, and profit is a combination of the three. By definition, the concepts of comparative advantage and competitive advantage have different meanings. The analytical approaches used to measure value and create value from the two perspectives are also different. Achieving and maintaining an advantage over relationships and competition is the key to long-term corporate success, therefore, understanding corporate assets and behaviors that can lead to synergies and competitive advantage is an important issue in leadership research.

Implementation of Ultra Micro Financing Based on DSN-MUI Fatwa Number 119

There are many problems in the Kecil community, namely the lowest level, AMD, and reversed financing. Ultra-Micro financing is here to provide solutions to the lower classes of society who need capital loans. This financing is regulated by Fatwa of the National Sharia Council No. 119/DSN-MUI/II/2018. This study aims to discover how the practices, mechanisms, and governance of ultra-micro financing follow sharia. The method used in this research is the empirical observation method and the literature research method. First, gather various reading sources, such as newspapers and articles. The study concluded that the channelling institution is an Islamic financial institution following DSN MUI Fatwa No 119/DSN-MUI/II/2018. The source of Super Micro Financing funds is the DSN MUI fatwa, the practice of unlawful interest. The source of Super Micro Financing funds is the DSN MUI fatwa, the method of unlawful interest. Determination of profit margins in the DSN MUI fatwa No 119/DSN-MUI/II/2018 uses the concept of profit sharing and is based on a predetermined contract. Supermicro Financing dispute resolution, according to DSN MUI fatwa No 119/DSN-MUI/II/2018, Dispute settlement is carried out through a Sharia-based dispute resolution institution.

Measuring and managing service productivity: a meta-analysis

Despite service productivity’s scholarly prominence and practical relevance, past research in marketing has primarily adopted isolated perspectives from which disjointed empirical findings reign supreme. As the acquisition of knowledge about service productivity accelerates, the collective evidence becomes more interdisciplinary but also more fragmented. This study uses a meta-analysis to integrate the substantial empirical record on service productivity. We formulate hypotheses on the moderators of service productivity-determinant relationships and meta-analyze 77 articles, relying on 81 independent samples with a cumulative sample size of 30,238 participants to test our predictions. Our meta-analysis provides empirical evidence that service quality and internal efficiency must be considered jointly, not in isolation, to maximize profitability. Thus, relying on one aspect in isolation is less appropriate for measurement purposes and might not lead to positive outcomes. This important finding should concern service scholars and managers because falling profit margins require service firms to move beyond the traditional manufacturing productivity that separates service quality from internal efficiency and consider service productivity as a profitability concept. In sum, our findings provide a viable model to explain the main service productivity determinants and moderating variables, offering valuable insights for practitioners that aim to deliver cost-efficient service quality and promising future research directions.

ASSESSMENT OF THE FINANCIAL RESULTS OF THE INSURANCE COMPANY

The insurance market was studied, which is an important sector of the market infrastructure, which significantly affects the state of the financial and credit system in the country. World trends show the relationship between the level of development of the insurance business and the economic development of the state. In many developed countries of the world, insurance companies are not inferior to banking institutions in terms of concentrated capital. It is noted that the effective functioning of the insurance market provides a favorable environment for insurance protection for all business entities. It has been proven that the funds accumulated by the insurance company will be transformed into investment resources in the future, the summarizing indicator of the insurance company's financial activity is the financial result. The financial result is the basis of the economic and social development of the enterprise, which creates a financial basis for the self-financing of the enterprise's activities. In scientific literature and in practical activities, the concepts of financial result and profit are often equated. It is justified that the term "financial result" is broader than "profit", since the financial result of the enterprise can be expressed in one of two forms – profit or loss. The financial result of an insurance company is an economic summary of the financial and economic activity of the insurer for the reporting period, reflected in the form of profit or loss, which indicates the success or failure of the insurance business in quantitative and qualitative terms. In this study, the object of research is SC "UPSK". The process of evaluating financial results involves conducting an analysis that is characterized by a variety of forms. Financiers of an insurance company need to correctly assess the situation and choose exactly the form of analysis that will provide the most comprehensive information for the development of profit management measures in order to increase it. Planning the financial results of an insurance company is a rather important process that requires the calculation of forecasted indicators. After the analysis, we can come to the conclusion that the financial position of PJSC "Ukrainian Fire Insurance Company" is quite favorable. In general, during the analyzed period, the income of the insurance company decreased by UAH 213,889 thousand. This dynamic is explained mainly by the decrease in operating income, as well as by a significant decrease in insurance premiums. But the SC did not break even during the investigated period, in 2020–2021 the amount of net profit was low – 196 thousand hryvnias. and 288 thousand hryvnias. accordingly. But in 2022, the net profit of the SC amounted to UAH 57,220,000.

The concept, types and research methods of profitability a commercial organization

The concept, types and research methods of profitability a commercial organization

АКТУАЛЬНІ ПИТАННЯ ОБЛІКУ І ОПОДАТКУВАННЯ ФУНКЦІОНУВАННЯ ЛІСОВОГО ГОСПОДАРСТВА

The proposed article is devoted to topical issues of accounting and taxation of forestry operations. The issue of improving the financial condition of forestry through the interaction of certain elements of the system of financial relations of entrepreneurial activity, which is determined by the combination of economic and production categories, is considered. They are the final result of interaction and are also distinguished by a system of models and methods that reflect the availability and use of financial resources at the enterprise. It was noted that profit and profitability are the main conditions of the enterprise's activity, but these indicators do not allow to ensure financial sustainability. The procedure for accounting financial results was studied. The interpretation of the concepts of profit and loss of the enterprise is given. Considered directions for improving the financial results of the enterprise. On the basis of the analysis of the legal basis of taxation of the financial results of forestry activities, the problems of accounting for the operations of forestry land are determined. Forms were reviewed and reasonable terms of rent were proposed. It was noted that an effective tax policy in the field of land use is a significant element of land relations. When studying the instrument of taxation of forestry land, it is possible to obtain certain levers for increasing the amount of income from land fees and creating a reasonable use of land resources. It is noted that for the accounting of financial results it is important to choose a rational accounting policy of forestry. Attention is paid to issues that arise when reflecting income and expenses from investment activities of the enterprise. For this purpose, it is necessary to divide the investment activity into the main investment activity and other investment activity, as well as specify this information on the third-order sub-accounts of the 793 account. Proposals are substantiated when all information about the results of business activity is presented in the financial reports themselves, and is also widely available for calculating the financial stability, level of liquidity and solvency of a given enterprise. Numerous problems have been identified to increase and improve the efficiency of accounting for the financial results of forestry operations.

부패방지를 위한 항공사의 공정거래 규제 방안

Through examples of unfair trade practices and exploitation of private interests by airlines, we tried to derive the Fair Trade Commission's regulatory measures. To this end, the legislation and major requirements for regulating airline companies' unfair trade practices and exploitation of private interests were reviewed, focusing on the illegal cases of Korean Air and Asiana Airlines.
 First, the Fair Trade Act required even subsidiaries to be regulated for unfair trade practices and exploitation of private interests. There have been cases where airlines have evaded regulations on unfair trade practices and exploitation of private interests by establishing subsidiaries through physical division, etc. Accordingly, it is necessary to expand regulations not only to subsidiaries but also to sub-subsidiaries, etc. In this regard, it is necessary to re-examine the internal control system, hold accountability in case of loss of penalty or loss of compensation due to loss of damages, and demand measures to prevent recurrence.
 Second, the 20% standard in the current Fair Trade Act is based on the total number of issued stocks, so companies with a significant number of treasury stocks may be excluded from unfair trade practices and exploitation of profits regardless of the intention of the Fair Trade Commission. Therefore, it is also necessary to consider calculating the share ratio, excluding treasury shares as the standard for issued shares.
 Third, looking at the judgments related to unfair trade practices and exploitation of Korean Air, we come to the conclusion that small-scale unfair trade practices and fraudulent acts cannot be regulated under Article 23-2 of the Fair Trade Act. Therefore, it is necessary to further clarify the concept of unfair profits in the Fair Trade Act with the active attitude of the judiciary.
 Fourth, the current Fair Trade Act does not directly or indirectly hold shares in the same person as in the Kumho Asiana Group, but unfair trade practices and exploitation of private interests by affiliates controlled through public service corporations are not subject to regulation. Therefore, it is necessary to prepare legal measures for ownership stake and actual control.

A Review of the Conceptual and Comparative History of Islamic Economic Theories

This paper aimed to explore the Islamic response and practical articulation to key economic concepts such as scarcity, wealth, poverty, and rationality using the divine revelation of Hadith of the Prophet Muhammad as a theoretical dimension of religion and piety. Furthermore, the concept of profit was redefined from the theoretical and practical perspective to "reconsider what is truly beneficial, what has real value and is worthy of our sacrifice”. Certain concepts and comparative analysis were critically examined by referring to classical economic thoughts as well as neoclassical and Islamic theories. Moreover, the contributions of each author were evaluated from general perspective of economics to understand the intellectual history of thought flows developed outside Western culture. The process of Islamic assessment and old value reassessment in relation to new social and economic realities.

INFLUENCE OF INNOVATIVE ACTIVITIES ON THE LEVEL OF PROFITABILITY OF ENTERPRISES

Topicality. Today, the profitability of the enterprise is the main indicator of economic stability, competitiveness, efficiency and the meaning of the creation and further existence of the enterprise in any field of activity. The main goal of the strategy for the development and efficiency of the enterprise is to ensure a sufficient level of competitiveness and obtain maximum profit, therefore, the search and justification of ways to increase the profitability of enterprises is always an urgent problem. In the modern world, during the period of active development of scientific, technical and innovative activities, the introduction of innovations into the activities of enterprises has a huge impact on the level of profitability of modern enterprises.Aim and tasks. The purpose of the article is to study the impact of innovative activity on the level of profitability of enterprises. In order to achieve the set goal, the following tasks were solved: the concepts of innovative activity and profitability of the enterprise were considered; the influence of innovative activity on the level of profitability of the enterprise is determined; the main indicators of innovative activity of Ukrainian enterprises are analyzed.
 Materials and methods. In the process of preparing the study, general scientific methods of cognition, observation, abstract-logical thinking, a systematic approach, and economic interpretation were used. Methods of a systematic approach to solving problems, as well as analysis, synthesis and unity of logical analysis and dialectical development, historical approach, statistical hypotheses and relationships, expert research.Research results. The article examines the concept of innovative activity and enterprise profitability; the influence of innovative activity on the level of profitability of the enterprise is determined; the main indicators of innovative activity of Ukrainian enterprises are analyzed. Directions for profit maximization and measures aimed at increasing the profitability of enterprises are proposed.Conclusion. The profitability of any enterprise can be increased due to the implementation of the results of innovative activities. The introduction of innovations makes it possible to produce products of higher quality and less energy consumption, and the operation of the enterprise is more efficient. But it can be said that one of the main problems of introducing innovations at enterprises is the unpreparedness of management to implement them in their economic activity. Although the efficiency of their use can significantly improve the profitability of business entities. Innovative activity is the direction of maximizing the demand for products, as a variety of forms of business organization, as a stage of the enterprise's innovative business strategy. The development and state of the innovation environment affects the level of profitability of enterprises. The introduction of innovations, the implementation of innovative activities at the enterprise allows to form such areas of profit maximization as: product, technological, organizational and management, resource, market. For the development and activation of innovative activities of domestic enterprises in the country, it is necessary to form and implement a system of targeted measures: development and introduction of a mechanism for granting benefits to enterprises that implement and realize the results of innovative activities; providing innovative enterprises with loans at a reduced credit rate; reduction of income taxation of enterprises that develop, implement innovations and use ecologically dangerous technologies, etc. The proposed measures will help create a favorable innovation climate, stimulate enterprises to increase their interest in the development and implementation of knowledge-intensive technologies, which in turn will lead to an increase in their profitability and competitiveness on the world market. In the country, there is no sufficient relationship between the amount of innovation financing for industrial enterprises and their own capital, the implementation of the results of innovation activity at domestic enterprises is expedient in order to increase their profitability, to determine an innovative development strategy, to make management decisions and increase efficiency and competitiveness. The prospect of further research in this direction is the identification of the relationship between the innovative activities of enterprises and their value indicators in the sector and the development of a universal model for assessing the impact of the innovative development of the enterprise on its profitability.

Approaches to studies of the profitability of businesses in the war economy conditions

Research aim. The purpose of the study is to form a complete and clear idea of approaches to calculating the profitability of Ukrainian enterprises in the conditions of a war economy, which is especially relevant in the conditions of a full-scale war between the Russian Federation and Ukraine.Research methods: positivism, which assumes the presence and application of various scientific paradigms and theories within certain scientific disciplines; systematic approach; general methodological principles of the system approach, empirical method and method of idealization; comparison, analysis, synthesis, interpretation, generalization.Research results. A complete and clear understanding of approaches to calculating the profitability of Ukrainian enterprises in the conditions of the military economy was formed. The concept of the military economy was also clarified. Under peaceful conditions and a market economy, as well as under conditions of a hybrid war while maintaining market relations in part of the state’s territories, three main groups of indicators should be used to calculate the profitability of enterprises: cost, income, and resource. To calculate the profitability of enterprises of the military-industrial complex, it is also worth using a specific indicator, which consists in weighing the combat effect of manufactured products on their cost price.Potential application of the research results: on the basis of the developed provisions, it is possible to develop organizational and methodical provisions for the analysis of profitability in the conditions of the military economy.Conclusions. The branches of the war economy were examined, and the fact that they were all related to the branches of the normal peacetime market economy was emphasized. After considering the existing classifications, a generalized version was given that divides the military economy into the following areas: 1) purely military production of means of armed struggle, 2) civilian production of means of armed struggle, 3) civilian production of ordinary civilian products, 4) military economy.In the traditional form, the concept of profitability in the conditions of the war economy is absent. Instead, in order to analyze at least the efficiency of the production process, it is suggested to limit the use of indicators of the productivity of the enterprise’s activity and to estimate labor productivity in the calculation of one employee or per unit of working time.
 JEL classіfіcatіon: D20, H56

Liminality Affect and Flesh

Liminality is an anthropological concept that has been influential in contemporary social studies. This article is written from an organisation culture and studies perspective wherein liminality has been seen: (i) as something that must be controlled, (ii) as a utopian call to creativity, and (iii) as a dystopian entrapment. Liminality has to do with whether the study of practice has been excessively cognitive whereby the human is reduced to concepts of control, efficiency and profit; and whereby the soma (Gr.) of the physical body is marginalised as mind, spirit, and ideation are prioritised. Thus, what of sarx (Gr.) or the flesh of existence (see Merleau-Ponty, Klossowski)? In this article we explore liminality evaluating its relationship to bodily-ness / bodyless-ness, affect and text. We start with a discussion of liminality as originated by the anthropologists van Gennep and Turner, and as pushed aside by Weick, but lionised as creativity by Kostera, and denounced as stagnation by Szakolczai. This is followed by an auto-ethnographic case study. The case study points to the unheimisch 2 of liminality which we examine via Pierre Klossowski’s manifoldness. Realising that text about liminality and its embodiment easily becomes paradoxical (unembodied and affectless), we present a non-textual (i.e., not written) visual reaction to the case; again, in the spirit of Klossowski; and we conclude with reflections co-inspired by Maurice Merlau-Ponty on the physical affectivity of liminality.

New indicators for delineating priority regions for ecosystem conservation based on the criterion of cost-effectiveness

Natural and semi-natural ecosystems are increasingly threatened by human activities and their conservation conflicts with the ever-increasing spatial demands of human habitation and food production. Identifying the regions in most need of specific ecosystem conservation measures is an urgent problem in order to address this sustainability issue. However, the ambiguous definitions and methods of delineating these regions have led to difficulties in decision-making. To solve this problem of identifying priority regions, we developed new indicators (the marginal profit in terms of supplied ecosystem services and the area of land required to host permitted human activities) and rules for the determination of variable thresholds. Based on the criterion of cost-effectiveness, the concept of marginal profit was introduced and two variable thresholds were determined for its delineation: (i) the largest marginal profit with the highest efficiency and (ii) a marginal profit equal to zero as the potential upper limit. Taking four counties in the water conservation region of Beijing, China as case study areas, the proposed method was applied and tested. The results showed different spatial variations in water conservation services between the four counties, demonstrating the spatially distinct importance of services, which is strongly related to their priorities for conservation. Using the variable strategy, our new indicators and method were able to quantify these spatial characteristics and select particular areas with high-value ecosystem services for delineating priority regions for conservation. Compared to the non-variable threshold with a fixed target, our variable thresholds realized differentiated targets in the four different counties with smaller areas of land conserved for more ecosystem services. The developed indicators also avoided the likelihood of unreasonable outcomes from the use of a fixed target, which, although it could use more land, it would pay for fewer ecosystem services. Our results show the effectiveness of our developed indicators and overall method, which is easily operable and provides differentiated outcomes for priority regions for ecosystem conservation, leading to more informed decision-making.

FEATURES OF FORMING AND USE OF INCOME OF ENTERPRISE

In the article the brought essence over of income of enterprises which are an important financial category, which represents the good financial result of economic activity of enterprise, characterizes efficiency of production, volume and quality of mine-out products, state of the labour productivity. The income of enterprise, which is a basic financial performance of managing subject indicator and represents efficiency of work of enterprise by realization and acceptance of administrative decisions, is considered. The term of income is analysed from the point of view by scientists by scientists which interpret this concept, and also from legislatively normative base of concept of income, profits and charges of activity of enterprises, as basic components of determination of income. Factors, which influence on an income enterprises, which are divided into external factors, which do not depend on activity and internal factors, which depend on activity of enterprise, and characterize the increase of the productivity of equipment and his quality, use of progressive types of materials and perfection of technology of their treatment, acceleration of circulating of circulating money, in-plant training and the labour of personnel, decline of labour intensiveness and resource-demanding of products, improvement of organization of labour productivity and more effective use of financial resources, are educed. The main goal of profit management is the most effective ways of its formation, distribution and extraction with the aim of ensuring the sustainable growth of the enterprise and maximizing its peak value. The main tasks of the formation of the company's profit and the main tasks of managing the distribution and use of the company's profit are defined, for which there is the provision of optimal distribution and use of the company's net profit.Measures are recommended on the basis of the conducted research for the effective management of enterprise and increase of his size which beautifully will influence on activity of enterprise an income. Drawn conclusion, that an income is the main financial result of any enterprise, aim of his activity, than more income an enterprise gets on the inlaid capital, the it works more effective

Biodiversity management approaches in small and innovative businesses: insights from a systems thinking perspective

PurposeAmid the current global crisis, biodiversity remains a topic that is often relegated to a few disciplines. Many issues related to the relationship between organizations and the ecosystem remain unexplored. This study aims to fill this gap by examining the characteristics of the interrelationship between these two complex and dynamic systems.Design/methodology/approachThis research is conducted using a constructivist approach, with an interpretivist perspective and a case study methodology. Through this research perspective and an exploratory multiple case study (holistic), the authors assess the implications related to the concept of biodiversity and the impacts that organizational choices could have on the consideration and management of this complex concept.FindingsThe desire of these entrepreneurs to change their ways of doing things and try to produce in a way that respects the ecosystem and enhances natural genetic diversity, while simultaneously drawing value from it in a healthy and sustainable manner, is evident. The orientation toward a sustainable and ecologically innovative business brings the concept of profit into the background on several occasions, leading these bakery entrepreneurs to be visionary green entrepreneurs (or ecopreneurs). The desire to be sustainable and to change the ways of “business as usual” makes these companies and their entrepreneurs an example of “sustainability-as-flourishing.”Originality/valueBy adopting the systems thinking approach and multiple case studies, this study examines the interrelation between some innovative small companies (bakeries) and biodiversity, their motivations to actively engage in biodiversity protection and their roles in protecting agrobiodiversity as well as the natural wealth of the ecosystem.

Interest rate versus profit rate in the light of Islamic maxim: Al-ibratu fil uqūdi lil maqāsidi wa ma’ānī lā lil alfāzi wal mabani

The concept of interest and profit is as old as the history of commercial transactions because, in Jahiliyyah (ignorant) period, people transact business based on interest and sometimes for profit. These concepts are also not alien to conventional financial practice, except that many people cannot distinguish between interest-based and profit-based transactions. As much as shariah encouraged commercial transactions of common and fair benefit through exchanging commodities and money, it equally emphasised the need for fair play and justice for entire market stakeholders. This study aims to explore and explicates literature on the differences between conventional bank interest rates and the Islamic bank profit rate in financing. The study will describe the contractual pictures of both methodologies to analyse the convergent and divergent features between interest-based loans and profit-based financing. This study uses the Islamic legal maxim theory of "In contracts, the effect is given to intention and meaning and not words and forms" (Al-‘ibratu fil uqūdi lil maqāsidi wal ma’ānī lā lil alfāzi wal mabānī) as a fundamental principle in determining shariah compliant profit based in commercial transactions. This study arrived at findings on the distinctive divergent between the interest rate and profit rates in financing. The study identifies issues those convergent trigger concerns among researchers and critiques in contemporary applications can be resolved based on contractual intent and meaning rather than words and forms. This study came up with recommendations for improving the operational status of Islamic financial transactions in the profit rate.

Mendorong Pertumbuhan UMKM dengan Menggunakan Konsep Bagi Hasil Sistem Mato

The purpose of this study is to encourage the use of profit sharing based on the mato system in the management of MSMEs that are adapted to the characteristics of each business unit. This research method is descriptive qualitative. Synergize the old system that already exists in the management of MSMEs with profit sharing based on the mato system using the focus group discussion method. The concept of profit sharing based on the existing mato system is currently used in most Padang restaurant management. Although RMP has turned into a large company, profit sharing based on the mato system has been used since its establishment, as a street vendor, as a micro-enterprise. In conclusion, the concept of profit sharing in the mato system can be injected into the management of MSMEs so that they can grow and develop faster.
 Keywords: Profit Sharing, Focus Group Discussion, MSME Management, Binary Opposition Synergy, Automatic System

Shariah Financing Model on Salt Mini Plant UTM in Order to Increase Production and Income Numbers

The purpose of this study is to provide an alternative model of Islamic financing to the salt business, namely the Mini Plant of Salt UTM. The existence of a shariah financing system that applies the principle of profit sharing allows the Mini Plant of Salt UTM and the publick to access capital through shariah financial institutions and also gain knowledge and reference in accessing capital to fund salt production activities. Data collection techniques were carried out using direct observation and interviews with the manager of the Mini Plant of Salt UTM, the Padelegan village apparatus, and the Islamic financial institution BMT NU Mandiri and BMT Sidogiri Pamekasan branch. The results of data analysis show that the Mini Plant of Salt UTM has developed a salt innovation that has been prototyped into food salt and non-food salt. Other research results found that the activities carried out by the UTM Salt Mini Plant until now have focused on research activities regarding salt. However, the Mini Plant of Salt UTM has not carried out salt processing on the available salt ponds land in the Padegelan village, Pademawu Pamekasan so that it has not been able to generate salt production and income for the Mini Plant of Salt UTM. The Mini Plant of Salt UTM has capital constraints in carrying out salt processing where the source of funds only comes from the University's DIPA. In an effort to overcome the funding problem, the Mini Plant of Salt UTM can use an alternative sharia financing with a mudharabah contract. This contract applies the concept of profit sharing to distribute profits. The provisions of sharia financing with mudharabah contracts can be implemented if the customer already has business activities that result in buying and selling transactions (current production activities)