AN EMPIRICAL STUDY OF ISLAMIC MICROFINANCE PERFORMANCE FOR POOR FAMILY: MAQASHID AL-SHARIA PERSPECTIVE

Aas Nurasyiah

Abstract


This research motivated by Islamic Microfinance performance measurement which still adopting on the performance measurement of microfinance in general that limited to the measurement of material. Therefore, efforts urgently needed to introduce more holistic measurement in assessing the performance of Islamic Microfinance based on tawheed principle. Thus, this study aims to measure the performance of Islamic Microfinance institutions based on Maqashid Al-Sharia. This research method uses quantitative approach with descriptive quantitative research design, which measures variables based on certain indicators. The location of the research is KOPMU-DT as one of the Islamic Microfinance institutions located in Bandung. The population of the study was the members KOPMU-DT wide-spread, among thousand people, but the withdrawal sample technique uses non-probability sampling with a sample of 100 members, based on the criteria that have been determined. Based on the research result, generally the members of KOPMU-DT increased living standards of the family economy and the performance of running micro-businesses. In Maqashid Al-Sharia perspective, the members experience a change in the principles of Ad-Din Al-Aql, A-nafs, An-Nasl and Al-Maal. However, among five principles, Al-Aql increases lower than other principles. In the future, to improve the performance of Islamic Microfinance, especially in KOPMU-DT, needs technical effort / business of accompaniment improvement to develop entrepreneurship from members. In addition, needs to give appreciation to the consistent members and disciplined in order to refund to add its financing to stimulate the operating business, without losing spiritual accompaniment to strengthen the achievement of Maqashid Al-Sharia of the empowerment members of Islamic Microfinance institution.

Keywords: Islamic Microfinance, Maqashid Al-Sharia, Performance

Full Text:

PDF

References


Abdullah, R., & Ismail, A.G (2014). Al-Tawhid in Relation to The Economic Order of Microfinance Institutions. Humanomics, 30(4), 325-348.

Ahmed, H. (2002). Financing micro enterprises: an analytical study of Islamic microfinance institutions. Journal of Islamic Economic Studies, 9(2)

Alam, M. M., Hassan, S., & Said, J. (2015). Performance of Islamic Microcredit in Perspective of Maqasid Al-Shariah. Humanomics, 31 (4), 374-384.

Ali, A. H., Abu-Hadi, A.O., & Ali, A. Y. (2013). The Accessability of Microfinance for Small Businesses in Mogadishu, Somalia. International Journal of Humanities and Social Science, 3(11), 172-180.

Aslaam, N. M. (2014). Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(4), 143-152.

BPS. (2018). Poverty and Inequality. Retrieved from the Central Bureau of Statistics: https://www.bps.go.id/subject/23/kemiskinan-dan-ketimpangan.html

Choudhury, M. A. (2010). On the theme of Tawhid, Zakah and Waqf in a meta-epistemological general-system model. Seventh International Conference: The Tawhidy Epistemology: Zakat and Waqf Economy, National University of Malaysia, Selangor, 6- 7 January.

Choudhury, M. A. (2011). Islamic Economics and Finance: An epistemological Inquiry. Emerald Group Publishing.

Dar, H. A. (2004). Demand for Islamic financial services in the UK: chasing a mirage. Economics Research Paper No. 4-11, Loughborough University, available at: https://dspace.lboro.ac. uk / 2134/335

Durrani, M. K., Usman A. Malik, M. I., & Ahmad, S. (2011). Role of Micro Finance in Reducing Poverty: A Look at Social and Economic Factors. International Journal of Business and Social Science, 2(21), 138-144.

Dusuki, A., & Bouheraoua ,S. (2011). The Framework of Maqasid Al-Shariah (Objectives of the Shariah) and Its Implications for Islamic Finance. ISRA Research Paper No: 22.

Fauzia, I. J. (2016). Urgency of Implementation of Green Economy Perspective Approach Dharuriyah In maqashid Al-Shariah. Journal of Economics and Business Islam, 2(1).

Karim, N., Tarazi, M., & Reille, X. (2008). Islamic Microfinance: An Emerging Market Niche. CGAP. Washington, DC.

Knight, T., & Farhad, H. (2008). Helping the Needy, Factors Influencing the Development of Microfinance in Barbados. Brooks World Poverty Institute, 1-17.

Komi, M., & Croson, R. (2005). Experiments in Islamic Microfinance. Dallas, TX: University of Texas.

Kumar, M., Bohra, N., & Johari, A. (2010). Micro-finance as an Anti-poverty Vaccine for Rural India. International Review of Business and Finance, 29-35.

Mikkelsen, B.H., Olander, K., Gubay, M. T., & Mekonnen, W. (2008). The Swedish Civil Society Organizations / Non-governmental Organization Cooperation Program, SIDA Evaluation, Stockholm, available at: www.sida.se/publications.

Mizanur, R, M. (2010). Islamic Microfinance Program And Its Impact On Rural Poverty Alleviation: The International Journal of Banking and Finance, 7(1), 119-138.

Morsid, N. (2014). The Effectiveness of Islamic Microfinance in Brunei Darussalam: A Case Study. The Journal of Muamalat and Islamic Finance Research, 11(1), 33-58.

Mursal. (2016). Development of Islamic Microfinance Institutions in West Sumatra Based Local Wisdom "Tigo Sajarangan Furnace". Analytica Islamica, 5(1), 108-124.

Nurasyiah, A., Aprilliani, S. U., Mahri, A. J. W., & Firmansyah. (2016). The Challenges of Human Capital Performance in Developing Baitul Maal Wat Tamwil in Indonesia. The UPI 1st Global Conference on Business, Management and Entreupreuneurship- Atlantis Press: Thompson Reuteurs.

Oluyombo, O. O. (2012). The Place of Cooperatives in Nigerian Microfinance. Cooperative Finance in Developing Economies. Logos: Soma Prints Limited, 81-95.

Financial Fervices Authority. (2018). Islamic Banking Statistics - January 2018. Retrieved from the Financial Services Authority: https://www.ojk.go.id/id/kanal/syariah/data-dan-statistik/statistik-perbankan-syariah/Pages/Statistik-Perbankan-Syariah-Januari-2018.aspx

Rahman, R. A., & Dean, F. (2013). Challenges and solutions in Islamic microfinance. Humanomics, 29(4), 293-306.

Rena, R., & Tesfy, G. (2006). Poverty and Microfinance in Eritrea - A Discourse. The Global Journal of Finance and Economics, 4 (2), 147-161.

Sekaran, U., & Bougie, R. (2013). Research Methods for Business A Skill-Building Approach Six Edition. United Kingdom: John Wiley & Sons Ltd.

Shastri, R. (2009). Micro-finance and Poverty Reduction in India (A Comparative Study with Asian Countries). African Journal of Business Management, 136-140.

Shinkafi, A. A., & Ali, N. A. (2017). Contemporary Islamic Shari'ah Maqasid on economic studies: a systematic literature review. Humanomics, 33(3).

Usman, A. S., & Tasminn, R. (2016). The Role of Micro-finance Islamicc in Enhancing Human Development in Muslim Countries. Journal of Islamic Finance, 5(1), 53-62.




DOI: http://dx.doi.org/10.47312/aifer.v3i01.253

Refbacks

  • There are currently no refbacks.