Title : UNDERSTANDING AND CHOOSING SHARIA OR CONVENTIONAL FINANCING FOR SMALL ENTREPRENEURS (Study of the Satrya Emas Program in Pasuruan Regency)
Author : HARTUTIK
Universitas Airlangga
Item Type : Thesis (Dissertation)
Abstract
This research explores small entrepreneurs' understanding of the Satrya Emas Program (Center for Benefit Economic Strategy and Services), Sharia Financing, Reasons for Selecting Financing Sources, and Business Sustainability of small business actors who choose sharia financing in Pasuruan Regency, East Java, Indonesia. The aim of the study is how to promote sharia financing in Pasuruan Regency which has a devout Islamic culture. This research uses a phenomenological approach, because it wants to explore data based on what is said, felt and done directly by small business actors. The research subjects are small entrepreneurs within the Satrya Emas Program. The research objects are understanding of the Satrya Emas program, understanding of Sharia financing, reasons for choosing financing sources, and business sustainability. Research results show that the Satrya Emas program is not yet understood by most informants and does not specifically synergize with Sharia Financial Institutions. Most of the informants did not understand various sharia financing contracts and products, and were inaccurate in understanding the halal and haram of bank interest due to lack of knowledge and information. The financial institution was chosen because some informants believed in the Al-Quran and Hadith laterally, there was an understanding that bank interest was halal if paid and haram if consumed, there were pick-up and drop-off facilities, there was convenience and was flexible and friendly in dealing with bad credit. Sharia or conventional is not a priority for most informants. Almost all informants do not have good and correct financial records, so they assess the progress of their business according to their individual perceptions. There needs to be special support from the Pasuruan district government, and cooperation from various parties, including the government, religious leaders, educational institutions, sharia financial institutions and non-governmental organizations, to work together in synergy to promote sharia financing in the Pasuruan Regency area.
Keywords: Sharia Financing, Satrya Emas Program, Small Entrepreneurs
