The Impact of Ijarah Financing on the Development of Micro, Small, and Medium Enterprises

Abstract

The small, middle, and micro businesses (MSMEs) that receive ijarah funds will have their growth influenced by this study. The research in this study was quantitative in nature, and regression analysis was the tool of choice for data processing. The sample was selected in an intentional way via the use of purposive sampling techniques. A total of 29 individuals from Bengkulu City's LKMS Bintang Ihsani participated in this study. To measure the effect of ijarah funding, we administered a survey that asked respondents about their experiences with the practice and how it has contributed to the expansion of MSMEs. This study found that there is a significant negative effect on the expansion of MSMEs (micro, small, and medium-sized companies). This suggests that there is a negative correlation between the amount of Ijarah money and the development level of MSMEs. In a similar vein, data processing helps micro, small, and medium-sized businesses (MSMEs) expand when ijarah funding decreases. Results from the t-test corroborate this; the significance level is 0.080, which is lower than the threshold of 0.10. So, we accept Ha as the alternative hypothesis and reject H0 as the null.