Title: UNDERSTANDING AND SELECTION OF SHARIA OR CONVENTIONAL FINANCING FOR SMALL BUSINESSES (Study on the Satrya Emas Program in Pasuruan Regency)
Author: HARTUTIK
Universitas Airlangga
Item Type: Thesis (Dissertation)
Abstract
This study explores the understanding of small business owners about the Satrya Emas Program (Center for Strategy and Services for the Maslahat Economy), Sharia Financing, Reasons for Choosing Financing Sources, and Business Sustainability of small business owners who choose sharia financing in Pasuruan Regency, East Java, Indonesia. The purpose of the study is how to popularize sharia financing in Pasuruan Regency which has a devout Islamic culture. This study uses a Phenomenological approach, because it wants to collect data based on what is said, felt, and done directly by small business owners. The subjects of the study are small business owners within the Satrya Emas Program. The objects of the study are the understanding of the Satrya Emas program, understanding of Sharia financing, Reasons for choosing financing sources, and business sustainability. The results of the study show that the Satrya Emas program has not been understood by most informants and has not specifically synergized with Sharia Financial Institutions. Most informants do not understand various sharia financing contracts and products, and are less precise in understanding the halal and haram of bank interest due to a lack of knowledge and information. Financial institutions were chosen because some informants believed in the Quran and Hadith in a lateral manner, understood that bank interest is halal if paid and haram if consumed, provided outreach facilities, and provided ease, flexibility, and a family-like approach to resolving bad debts. Sharia or conventional financing was not a priority for most informants. Almost all informants lacked proper financial records, so they assessed their business progress based on their own perceptions. Special support from the Pasuruan Regency government and collaboration from various parties, including the government, religious leaders, educational institutions, Islamic financial institutions, and non-governmental organizations, are needed to synergize in promoting Islamic financing in the Pasuruan Regency area.
Keywords: Sharia Financing, Satrya Emas Program, Small Entrepreneurs