Faisol The impact of Financing of Syariah Bank toward the performance and Welfare of Small Medium Enterprise Faisol faisol@unpkediri.
The Faculty of Economy at Departement of Accounting Nusantara University of PGRI Kediri East Java Indonesia Abstract The purpose of this paper is to examine empirically the influence financing of Syariah Bank toward the business performance, the influence of financing of syariah bank toward welfare of small entrepreneurs, and the influence of performance of UKM toward the welfare of small entrepreneurs.
The population of this research is all of the small medium enterprises in the District of Kediri who got Islamic bank financing for one year.
These samples included 71 SMEs agribusiness.
Sampling was done by purposive sampling research, namely SME agribusiness got Islamic bank financing for one year, with a workforce of 5 to 19 people.
Questionnaire was used as a tool to collect primary data.
The method of analysis used partial least square (PLS).
Testing is done with a structural model (Inner mode.
and models of measurement (Outer mode.
Statistically, the results show that the Islamic bank financing significant influence with a positive direction on the performance of SMEs, this means that when the Islamic bank financing improved, will improve the performance of SMEs, further financing Islamic banks have a significant effect with positive direction towards the well-being of SMEs so that when the Islamic bank financing improved well-being of SMEs will be increased then the performance of SMEs have significant influence in a positive direction for the welfare of SMEs.
So if the business performance of SMEs improved, well-being will increase.
Keywords: Islamic Bank Financing, business performance, welfare, small
INTRODUCTION
Syaria bank is an Islamic financial institution had a purpose and function.
It goal reaches the profitable as businesses and non-profit organizations as a non business.
Th profit purpose is in order to achieve the advantages of the world and the hereafter, while non-profit purpose is in order to achieve the hereafter.
Two of these goals make the bank function as business organizations as well as social (Arcarya: 2.
Syaria bank as a business institution implemented Islamic bank as an intermediary institution that serves to connect between the surplus or the owner of the funds with the minus-one that requires funding, for example, employers, government and household sectors.
Intermediation done here is expected to stimulate the real sector.
The presence of Islamic banks in the banking industry is expected to contribute in the real sector, in fact it is the primary duty of Islamic banks.
Banking activities in the real sector, among others, is to channel financing to scores of business.
In terms of financing.
Islamic banks differ from conventional banks.
Activity in the finance portfolio will increase the venture capital sector.
Funding in this study is defined as an investment, because investment means spending aimed for improving or maintaining the stock of capital goods consisting of machinery, factories, offices and durable products that are used in the production process.
Investment is also defined as expenditures or capital investment expenditures.
The Company purchased capital goods and the equipmemt of production to increase the production capacity of goods and services available in the economy.
EFEKTOR ISSN.
2355-956X .
Volume 5 Nomor 2 Tahun 2018 Faisol According to Paul A.
Samuelson and William D.
Nordhaus, .
6: .
, investment is expenditure made by the investment concerning the use of resources such as equipment, buildings, production equipment and other new machinery or supplies are expected to be benefit from the Factors that can determine the level of such investments.
the profit rate of investment is forecast to be obtained, the interest rate, predictions of future economic circumstances will come, inflation rates, technological advances, income level and its changes.
Syaria banking in its efforts to boost the real sector can be seen in the data published by Indonsia Bank through Islamic Banking Statistics data published every month.
Financing provided by Syaria Bank based types of transaction as shown in Table 1.
The data shows the composition of funding channeled Syaria Banks and Sharia Business Unit between the years 2007-2014.
Table 1.
Financing Composition of Islamic Commercial Bank and Islamic Business Unit (Milya.
Akad Mudharaba Musharaka Murabaha Salam Istishna Ijara Qardh Others Total 27.
Reference: BI.