Proper funding is one of the biggest problem
faced by micro and small entrepreneurs. Funding or
Capital financing is usually very limited. Meanwhile,
existing banking institutions include shari'a banking
initiate with various requirements so complicated for
micro and small-enterprises/SMEs to attain. The
existence of shari'a microfinance institutions which are
currently in the form of BMTs can be found in almost
every villages or small town. BMT, as part of shari'a
coordination, is a microfinance institution that plays a
role as a banking institution, i.e. collecting, distributing
and providing services can be an alternative for micro
and small entrepreneurs. BMT as a companion
institution for the distribution of SME, would be the
right partner, compared to banking institutions. Thus, it
is expected that BMT as a shari’a cooperative or
microfinance institution has to improve its performance.
In exchange, the empowerment in micro and small
businesses through financial assistance can be effective,
especially in terms of funding management, membership
and financing must be continuously improved.
Keywords : Shari’a Banking, Murābaha, Mushāraka, SME.