Determinants of Murabahah Financing for Microfinance

Abstract

This study aims to analyze the determinants of the decision of micro and small entrepreneurs in the culinary 
sector in choosing murabaha financing through microfinance. The subjects of this study are micro and 
small entrepreneurs at microfinanace. The sample of this research is 100 micro and small entrepreneurs of 
the culinary sector members of microfinance which were taken using convenience sampling method. 
Data collection techniques using questionnaires and documentation. The analysis technique used in this 
study is exploratory factor analysis. This study will formulate 20 indicators obtained from the preliminary 
test and then reduced to a factor or variable. The variable to be examined is the decision of micro and 
small entrepreneurs in the culinary sector in choosing murabaha financing through the microfinanace. 
The stages of the research method are the preliminary test, library study, and the main test conducted 
on 100 micro and small entrepreneurs in the culinary sector members of microfinanace. The results of this 
study indicate that there are five factors that influence the decision of micro and small entrepreneurs in 
the culinary sector in choosing murabaha financing through microfinanace. These factors include service 
convenience factors, factors of compensations, trust factors, microfinanace image factors and 
professionalism factors. Funding also impacts micro and small entrepreneurs, both in terms of Madiyah 
welfare and spiritual welfare. The impact of financing from the Madiyah welfare side can be shown by 
an increase in business income. In terms of spiritual welfare, the financing of microfinanace has helped 
increase the worship of micro and small entrepreneurs.