The Role of Sharia Microfinance Institutions in Strengthening the Community Economy through MSMEs (Case Study on KSPPS BMT PETA Jombang Branch)

Abstract

This study aims to determine the role of Islamic microfinance institutions in strengthening the economy of micro, small and medium-sized communities in Jombang Regency through KSPPS BMT Peta Jombang Branch. This research method uses a qualitative approach, qualitative approach qualitative research is a type of research whose findings are not obtained through statistical procedures or other forms of calculation and seeks to understand and interpret the meaning of an event of human behavior interaction in a particular situation according to the researcher's own perspective (Sa'adah, 2022). The data sources of this research are primary data and secondary data. The primary data used in this study were collected through a list of questions to the sources, namely the KSPPS BMT Peta and the Tambak Rejo community who obtained loans and micro-scale business financing at BMT Peta. Secondary data obtained by reading literature such as literature books, internet websites, journals related to the subject of research. The object of research is the party of the Branch Head of KSPPS BMT Peta Jombang and 5 customers as informants. The results of this study indicate that KSPPS BMT Peta plays a positive role in strengthening the economy of micro, small and medium enterprises in the form of raising funds, channeling funds (financing), and business development assistance.

Keywords: Shari'ah Microfinance Institution, BMT, UMKM.