PERAN LEMBAGA KEUANGAN MIKRO SYARIAH DALAM PENGEMBANGAN UMKM MENGGUNAKAN PARTIAL LEAST SQUARE

Abstract

This research aims to analyse the role of financing and fostering BMT, as a shariah microfinance institution, on business development and improving micro & small business partners' welfare, a case study at BMT Al Fath IKMI Ciputat. The study was conducted using the Partial Least Square (PLS) method. The research results show that financing and fostering have a significant influence on business development which then has an impact on increasing welfare. This study provides empirical evidence that BMT intervention through financing and coaching can increase the capacity of micro and small businesses and improve its members' economic welfare.