Jurnal Ekonomi & Studi Pembangunan Volume 24 Nomor 1, April 2023 Article Type: Research Paper The role of sharia microfinance in micro business development Ayif Fathurrahman* and Choironi Mutmainah Abstract: This study aims to determine how the differences in sales turnover, the number of workers, the number of goods sold, and the number of customers before and after receiving financing at BMT Artha Amanah Sanden. This research is a type of quantitative descriptive research. The subjects in the study were micro- entrepreneurs who received the financing at BMT Artha Amanah Sanden. Regarding the fundamental issues in microbusiness which are capital and connections, this research is important to show the real form of establishing an effective and mutually reinforcing Islamic economic ecosystem. In this study, a sample of 50 micro-entrepreneurs were selected by the survey method. The data collection techniques in this study used questionnaires and interviews. The analytical tool used was non-parametric analysis method of the Wilcoxon Sign Rank Test. Based on the results of the analysis, it is found that: (1) There is a difference between sales turnover before and after financing from BMT Artha Amanah KC Sanden. (2) There is a difference between the number of workers before and after financing from BMT Artha Amanah KC Sanden. (3) There is a difference between the number of goods sold before and after financing from BMT Artha Amanah KC Sanden. (4) There is a difference between the number of customers before and after financing from BMT Artha Amanah KC Sanden. Keywords: Business Development; Micro Business; Baitul Maal Wat Tamwil (BMT) JEL Classification: G21; F62 Introduction One of the drivers of the Indonesian economy that empowers the interests of society is micro, small, and medium enterprises (MSMEs). Micro, small and medium enterprises as economic players are able to absorb a large workforce, are able to increase income distribution evenly, as well as in accelerating economic growth in order to realize national stability and economic stability (Ritonga, 2019). Considering the condition of the world economy, at the time of experiencing the global financial crisis or what is popularly known as the monetary crisis which had an impact on the rupiah exchange rate declining against the US dollar, the price of goods soared, many people were laid off, and social crises such as riots, looting, and acts of anarchy occurred. As a result, this situation worsened the economy of Indonesia. AFFILIATION: Department of Economics, Faculty of Economics and Business, Universitas Muhammadiyah Yogyakarta, Special Region of Yogyakarta, Indonesia *CORRESPONDENCE: ayief_ospp@yahoo.com THIS ARTICLE IS AVALILABLE IN: http://journal.umy.ac.id/index.php/esp DOI: 10.18196/jesp.v24i1.17856 CITATION: Fathurrahman, A., & Mutmainah, C. (2023). The role of sharia microfinance in micro business development. Jurnal Ekonomi & Studi Pembangunan, 24(1), 242- 258. ARTICLE HISTORY Received: 09 Feb 2023 Revised: 19 Apr 2023 11 May 2023 Accepted: 18 May 2023 https://scholar.google.co.id/citations?user=HJfX9RIAAAAJ&hl=en https://economics-feb.umy.ac.id/ https://economics-feb.umy.ac.id/ https://economics-feb.umy.ac.id/ https://economics-feb.umy.ac.id/ https://economics-feb.umy.ac.id/ mailto:ayief_ospp@yahoo.com http://journal.umy.ac.id/index.php/esp http://dx.doi.org/10.18196/jesp.v24i1.17856 https://creativecommons.org/licenses/by-sa/4.0/ https://crossmark.crossref.org/dialog/?doi=10.18196/jesp.v24i1.17856&domain=pdf Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 243 On the other hand, the economic sector that was affected by the monetary crisis was the micro, small, and medium economy sector. Even so, the micro, small, and medium business sector continued to strive to stand firm and strengthen the economic conditions at that time. Based on data from the Central Bureau of Statistics, the number of MSMEs during the monetary crisis did not decrease but increased in growth. The number of MSMEs in Indonesia in 2021 reached around 65.46 million. In 2021, Indonesian MSMEs were recorded to be able to absorb 97% of the workforce, contribute 60.3% to the Gross Domestic Product (GDP), and contribute 14.4% to national exports. Despite the uncertain health and global conditions, the national economy still requires considerable support. The state budget plays an important role in facing the impact of the Covid- 19 pandemic and is a countercyclical instrument for the weakening of the economy. During the pandemic, Micro, Small, and Medium Enterprises (MSMEs) were one of the sectors that were significantly affected, one of which was the impact of the policy of limiting people's movements. In fact, based on BPS data, MSMEs made a major contribution to the national economy. Government support for MSMEs as part of the PC- PEN program reached IDR 157.7 trillion in 2020, IDR 117.3 trillion in 2021, and IDR 64.68 trillion in 2022. Contributed by this stimulus in the business world, the condition of MSMEs has experienced a decline at the beginning of the pandemic in 2020 with a contribution to GDP of 37.3% and employment of 73%. However, it can quickly increase again in 2021 so that its contribution to GDP becomes 61.9% with employment reaching 97% (Majalah Treasury Indonesia, 2022). Based on the description above, MSMEs have an important role for economic stability and have also been proven to exist when the monetary crisis occurred, they did not depend too much on debt or loans from foreign parties and imported raw materials (Fakhrunnas, 2020), although they still need the government's attention, especially after this Covid 19. MSMEs are able to grow considerable self-confidence, especially in financing and managing their own businesses without involving foreign interference. Likewise, in terms of capital and raw material aspects, MSMEs rely on domestic sources so that the use of national resources can be optimized. In addition, MSMEs can also absorb labor and provide opportunities for MSMEs to compete with large companies (Maryati, 2014). In addition to contributing a lot, MSMEs also have various obstacles and problems, especially in the first case, financially or lack of capital, both in quantity and in terms of sources, due to the limited access faced by MSME to receive financing from formal financial institutions such as banks, causing them to borrow capital in easy way from relatives, family, or loan sharks (Aisyah, 2018; Faisol, 2017; Feyisa & Tamene, 2019; Rini, 2017; Godke Veiga & McCahery, 2019). Second, the lack of managerial skills and operating skills in organizing and limited marketing (Abror et al., 2019; Aisyah, 2018; Saleh et al., 2017; Suhartanto et al., 2019). Third, the skills of MSME actors in terms of business management are still traditional, and also the quality of human resources (HR) is inadequate. To overcome the problems faced by MSMEs, a microfinance institution is needed which is expected to be able to develop better MSMEs. Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 244 Microfinance institutions can be interpreted as financial institutions that provide funding for people with low incomes. According to Ngehneu and Nimbo as cited in Ali et al. (2013), microfinance institutions are financial institutions that provide opportunities for poor people who want to develop or build a business through financial services including small credit, savings, micro-insurance, and money transfers. In addition, according to Siyad (2013), micro-institutions enable the poor to increase their sources of income in order to expand or build new business opportunities. The sharia-based microfinance institution that is widely known by the public is Baitul Maal Wat Tamwil (BMT). BMT is one of the Islamic financial institutions in Indonesia where its activities are based on sharia principles with two main functions, namely baitul maal (the collection of funds, such as zakat, infaq, shodaqoh) and baitul tamwil (collection and distribution of commercial funds or profit oriented) (Soemitro, 2009). In addition to sharia principles which are the basis for BMT in carrying out its activities (operational), BMT also uses an approach model, namely by assisting its customers, in this way BMT can foster more trust in its members so that from time to time BMT continues to grow. BMT as a community economic institution also aims to support the economic activities of the lower and small people which are run based on Islamic sharia which can help and alleviate the economic problems faced by fellow Muslims in order to achieve benefit. Baitul Maal Wat Tamwil (BMT) which is the focus of this research is BMT Artha Amanah KC Sanden. BMT Artha Amanah KC Sanden is one of the BMTs that continues to experience development from year to year. This can be seen from the data presented that the growth rate of BMT Artha Amanah Sanden's assets over the last 10 years has always increased. The number of assets owned by BMT Artha Amanah Sanden has increased from the period 2010 to 2019. In general, the increase in the total assets of BMT Artha Amanah Sanden is an average of Rp. 5,475,337,410.8 annually. BMT Artha Amanah Sanden Branch Office is a BMT that grows and develops very well in channeling and raising funds from the community, as well as in providing Micro Business financing. Hence, with the financing provided by BMT, it is hoped that Micro Enterprises will be able to develop better and progressive which can be seen through the differences before and after receiving financing. This financing can be said to be successful if there is development of Micro Enterprises after receiveing the financing, conversely if there is no development of Micro Enterprises after receiveing the financing, then the financing can be said to have been unsuccessful. According to Chandra (2000), an increase in sales turnover is an indicator that a business is experiencing growth. In addition, researchers Kim and Choi, (1994); Lee and Miller, (1996); Lou, (1999); Miles at al., (2000); Hadjimanolis, (2000) as cited from Sholeh (2008), stated that the development of Micro Enterprises can be marked by the number of sales turnover, the number of workers, and the number of customers. A business can be said to develop when the amount of income increases (sales turnover increases) followed by an increase in goods sold, which means that buyers or customers also increase so that Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 245 Micro Enterprises will be stimulated to increase their workforce to serve buyers/customers well which will affect increased profits. Based on the results of the previous analysis, according to research conducted by Yuliani et al. (2019), it proves that business capital, sales turnover, and business profits have increased between before and after obtaining financing from BMT. Furthermore, the results of research conducted by Kartawinata et al. (2020) show that sales turnover, labor, and customers have increased between before and after financing from Islamic financial institutions. Then, the research conducted by Jubaedah and Destiana (2015) shows that sharia financing with mudharabah and musyarakah contracts has a significant positive influence on the development of assets, sales turnover, and net income of MSMEs. In addition, research conducted by Anggraeni et al. (2013) revealed that BMT sharia financing has a positive and significant effect on business profits. The research gap is an empirical study related to the ability of Islamic microfinance institutions to assist micro entrepreneurs. This study aims to examine in more detail the role of Islamic microfinance institutions on the success of micro business. Second, this research is identified as serial micro-entrepreneurs on what personal skills they possessed after financing by microfinance institutions. Then, they were compared to before financing. The novelty of this study is the focus on examining the role of Islamic microfinance for small businesses in terms of finance size institutionally. Regarding the fundamental issues in microbusiness which are capital and connections, this research is important to show the real form of establishing an effective and mutually reinforcing Islamic economic ecosystem. Specifically, for this connection problem, BMT is very strategic in supporting micro business institutions, for example sharing information, systems, and networks. Research Method Data and Sample This research was conducted at BMT Artha Amanah Sanden which is located on Jalan Sanden Murtigading, Bantul, Special Region of Yogyakarta. The sample in this study is Micro Business actors who are customers of BMT Artha Amanah Sanden who use financing to develop their business. The type of data used in this research is quantitative data. The data in this study used primary data, namely data obtained based on direct field observations from sources who were research subjects through interviews, questionnaires, and observation periods Oktober 2021-April 2022. The variables to be tested are sales turnover, number of workers, number of goods sold and number of customers. The sample used in this study is Micro Business actors who apply for and obtain channeling of funds from BMT Artha Amanah Sanden using the method of non probablity with survey reserch method. Survey Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 246 research is research that takes samples from one population and uses a questionnaire as the main data collection tool. Data Analysis The normality test aims to determine whether the data in question is normally distributed or not by testing the distribution of the data being analyzed. The analytical tool used to test the normality of the data is the Kolmogrov Smirnov Test (Kuncoro, 2009). Folllowing Cuong Pham and Xuan Hong Nguyen (2019), this study used the Wilcoxon sign power to test the hypothesis. Wilcoxon Test is the best method for non parametric research. The Wilcoxon rank test can also be used as a different test (comparison) where the data studied comes from the same number of respondents and relates to different observation periods (before and after obtaining financing from BMT Artha Amanah Sanden for Micro Enterprises which are the members). After the variables are tested for Wilcoxon's sign, the Z value and probability (p) will appear. If probability (p) > 0.05 then H0 is accepted, if probability (p) < 0.05 then Ha is accepted. The significance of this study will compare Ztable and Zcount. According to Soehianie (year) as cited (Herdian, 2015), the statistical test for the average is the Z value of the average, because α = 5%, the corresponding critical value from the table is Z 0.025 = 1.96 and – Z 0.025 (test 2 tails) . The critical area is Z > 1.96 or Z < -1.96. Result and Discussion Normality Test The Table 1 shows the results of the normality test analysis using the Kolmogorov-Smirnov test on sales turnover, labor, number of goods sold, and number of customers before and after receiving financing. To see the results of the normality test, it can be seen from the Asymp.Sig (2- tailed) value. If the value of Asymp.Sig (2- tailed) > 0.05 then the data is declared normally distributed. If the value is < 0.05 then the data is not normally distributed. Table 1 Normality Test Result One-Sample in Kolmogorov-Smirnov Test Test Statictic Asym. Sig. (2- tailed) Sales Turnover Before 0.236 0.000c After 0.264 0.000c Labor Before 0.502 0.000c After 0.412 0.000c Number of Items Sold Before 0.359 0.000c After 0.373 0.000c Number of Customers Before 0.194 0.000c After 0.165 0.002c Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 247 Data Hypothesis Testing and Data Analysis Wilcoxon Sign Rank Test In this study, the data on the development of micro-enterprises are analyzed before and after receiving financing at BMT Artha Amanah KC Sanden. Sales Turnover variable The results of the analysis using the Wilcoxon sign power test on sales turnover before and after obtaining financing are as follows: Table 2 Statistics Test on Sales Turnover Descriptive Sales Turnover Before After N 50 50 Mean 12686400,00 23782800,00 Std. Deviation 12488928,282 27744521,727 Minimum 1500000 2250000 Maximum 60000000 120000000 From the descriptive statistical test Table 2, it shows that before receving financing from BMT Artha Amanah KC Sanden, the sales turnover of Micro Business actors had a minimum value of IDR 1,500,000 and a maximum value of IDR 120,000,000 with an average of IDR 12,686,400.00. After the financing from BMT Artha Amanah KC Sanden increased with a minimum value of IDR 2,250,000 and a maximum value of IDR 120,000,000 with an average of IDR 23,782,800.00. Table 3 Sales Turnover Wilcoxon Signed Test N Mean Rank Sum of Ranks After Negative Ranks 0a 0,00 0,00 Before Positive Ranks 48b 24,50 1176, 00 Ties 2c Total 50 The Table 3 shows a comparison of sales turnover before and after receiving financing at BMT Artha Amanah KC Sanden. There were 0 respondents, which means that there were no respondents whose sales turnover after receiving financing was smaller than before receiving financing. Meanwhile, 2 respondents remained, and 48 respondents had turnover greater sales than before receiving financing. Table 4 Difference Test Results on Sales Turnover OPAfter – Opbefore Z -6,037b Asymp. Sig. (2-tailed) 0,000 Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 248 The Table 4 shows the results of the calculation of the Wilcoxon signed power test, a Z value of -6.037 was obtained with a p- value or Asymp. Sig. (2-tailed) of 0.000 where the value is less than the limit of 0.05 and the value of Zcount -6.037 <-1.96. Based on the results, the hypothesis Ha1 is accepted, which means that there is a significant difference between sales turnover before and after receiving financing from BMT Artha Amanah KC Sanden. Furthermore, these differences can be seen from the Figure 1. Figure 1 Sales Turnover Before and After Receiving Financing Based on the Figure 1, the difference in sales turnover before and after obtaining financing at BMT Artha Amanah KC Sanden can be observed. Thus, it can be concluded that there was an increase in the number of respondents' sales turnover after receiving financing at BMT Artha Amanah Sanden which is 87.47%. Number of labor Variable The results of the analysis using the Wilcoxon rank test for the number of workers before and after receiving financing are as follows: Table 5 Descriptive Statistical Test of the Number of Labor Number of labor Before After N 50 50 Mean 0,16 0,58 Std. Deviation 6,18 1,486 Minimum 0 0 Maximum 4 7 62% 16% 14% 2% 4% 2% 0% 0% 0% 0% 0% 40% 28% 12% 4% 4% 2% 0% 2% 4% 0% 4% 0 5 10 15 20 25 30 35 Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 249 From the Table 5, it shows that before receiving financing from BMT Artha Amanah KC Sanden, the number of Micro Business actors shows a minimum value of 0 people and a maximum value of 4 people with an average of 0.16. After receiving financing from BMT Artha Amanah KC Sanden, the range of workers obtains a minimum value of 0 people and a maximum value of 7 people with an average of 0.58. Table 6 Wilcolxon Signed Elevation Test on the Number of Labor N Mean Rank Sum of Ranks TKAfter Negative Ranks 0a 0,00 0,00 TKBefore Positive Ranks 12b 6,50 78,00 Ties 38c Total 50 The Table 6 illustrates a comparison of the number of workers before and after receiving financing at BMT Artha Amanah KC Sanden. There were 0 respondents, which means that there were no respondents showing that the number of workers after receiving financing was smaller than before receiving financing, 38 permanent respondents, and 12 respondents had a larger number of workers than before receiving financing. Table 7 Difference Test of Number of Labor TKAfter TKBefore Z -3,165b Asymp. Sig. (2-tailed) 0,002 The Table 7 shows the results of the calculation of the Wilcoxon sign power test, a Z value of -3.165 is obtained with a p- value or Asymp. Sig. (2-tailed) of 0.002 where the value is less than the limit of 0.05 and the Zcount value is -3.165 < -1.96 so that the hypothesis decision is Ha2 is accepted, which means there is a significant difference between the number of workers before and after obtaining financing from BMT Artha Amanah KC Sanden. Furthermore, these differences can be seen from the Figure 2. Figure 2 Total Workforce Before and After Receiving Financing 8 6 4 2 0 1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 Before After Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 250 Based on the Figure 2, the difference in the number of workers before and after obtaining financing at BMT Artha Amanah KC Sanden can be seen. It can be concluded that there is a difference and an increase in the number of respondents' workforce after obtaining financing at BMT Artha Amanah KC Sanden, namely 262.50%. Number of Items Sold The results of the analysis using the Wilcoxon power sign test on the number of goods sold before and after obtaining financing are as follows: Table 8 Descriptive Statistical Test of Number of Goods Sold Number of Items Sold Before After N 50 50 Mean 3688, 20 8124, 00 Std. Deviation 6997, 393 19550, 316 Minimum 60 90 Maksimum 90 105000 The descriptive statistical test Table 8 shows that before obtaining financing from BMT Artha Amanah KC Sanden the number of goods sold by micro business actors with a minimum value of 60 and a maximum value of 90 with an average of 3688.20. After the financing from BMT Artha Amanah KC Sanden, it increased with a minimum value of 90 and a maximum value of 105000 with an average of 8124.00. Table 9 Wilcoxon Sign Rank Test of Amount of Goods Sold N Mean Rank Sum of Ranks JBTAfter Negative Ranks 0a 0,00 0, 00 JBTBefore Positive Ranks 47 b 24, 0 0 1128, 0 0 Ties 3c Total 50 The Table 9 shows a comparison of the number of goods sold before and after obtaining financing at BMT Artha Amanah KC Sanden. There were 0 respondents meaning that there were no respondents whose number of goods sold after obtaining financing was smaller than before obtaining financing. Moreover, 3 permanent respondents and 47 respondents have a greater number of goods sold than before obtaining financing. Table 10 Different Test Results for the Number of Goods Sold JBTAfter -JBTBefore Z -5, 972b Asymp. Sig. (2-tailed) 0, 000 The above 10 the results of the calculation of the Wilcoxon sign power test. A Z value of - 5.972 is obtained with a p-value or Asymp. Sig. (2-tailed) of 0.000 which is less than the limit of 0.05 and the value of Zcount of -5.972 < -1.96 so that the hypothesis decision of Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 251 Ha3 is accepted which means there is a significant difference between the number of goods sold before and after obtaining financing from BMT Artha Amanah KC. Furthermore, these differences can be seen in the Figure 3. Figure 3 Number of Goods Sold Before and After Receiving Financing Based on the Figure 3, the difference in the number of goods sold before and after obtaining financing at BMT Artha Amanah KC Sanden can be seen. It can be concluded that there was an increase in the number of items sold by respondents after obtaining financing at BMT Artha Amanah KC Sanden, namely 120.27%. Number of Customers The results of the analysis using the Wilcoxon power sign test on the number of customers before and after obtaining financing are as follows: Table 11 Descriptive Statistical Test of Number of Customers Number of Customers Before After N 50 50 Mean 274,20 399, 60 Std. Deviation 118,771 146, 524 Minimum 120 180 Maksimum 600 750 The Table 11 shows that before obtaining financing from BMT Artha Amanah KC Sanden the number of customers of micro business actors with a minimum value of 120 people and a maximum value of 600 people with an average of 274.20. After the financing from BMT Artha Amanah KC Sanden, it increased with a minimum value of 180 and a maximum value of 750 with an average of 399.60. 20% 42% 20% 0% 9% 0% 2% 0% 0% 0% 10% 4% 32% 20% 14% 9% 4% 2% 2% 4% 2% 10% 0 5 10 15 20 25 Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 252 Table 12 Wilcoxon Sign Elevation Test Number of Customers N Mean Rank Sum of Ranks JPAfter Negative Ranks 0a 0, 00 0, 00 JPBefore Positive Ranks 47b 24,00 1128, 00 Ties 3c The Table 12 shows a comparison of the number of customers before and after obtaining financing at BMT Artha Amanah KC Sanden. There were 0 respondents meaning that there were no respondents whose result was smaller than before obtaining financing. 3 respondents remained in the same category, but 47 respondents had a larger total number of customers than before obtaining financing Table 13 Test Results for Different Numbers of Customers JPAfter –JPBefore Z -6, 009b Asymp. Sig. (2-tailed) 0, 000 The Table 13 shows the results of the calculation of the Wilcoxon sign power test. A Z value of -6.009 is obtained with a p-value or Asymp. Sig. (2-tailed) of 0.000 where the value is less than the limit of 0.05 and the Zcount value is -6.009 < -1.96 so that the hypothesis decision of Ha4 is accepted which means there is a significant difference between the number of customers before and after obtaining financing from BMT Artha Amanah KC Sanden. Furthermore, these differences can be seen in the Figure 4. Figure 4 Number of Customers Before and After Obtaining Financing Based on the Figure 4, the difference in the number of customers before and after obtaining financing at BMT Artha Amanah KC Sanden can be seen. It can be concluded that there is a difference and an increase in the number of respondent customers after obtaining financing at BMT Artha Amanah KC Sanden, namely 45.73%. 25 23 20 16 15 17 13 10 9 5 0 100-200 201-300 301-400 401-500 >500 After Before Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 253 Discussion In this study, the differences between micro-enterprises before and after obtaining financing at BMT Artha Amanah Sanden can be seen from sales turnover, number of workers, number of goods sold, and number of customers. The discussion is as follows: Sales Turnover The results of the comparison show the sales turnover before and after obtaining financing at BMT Artha Amanah KC Sanden. Out of 50 respondents, 0 respondents did not experience a decrease in sales turnover after obtaining financing, 48 respondents experienced an increase in sales turnover after obtaining financing, and 2 respondents did not experience changes (fixed) between before and after obtaining financing. With the financing from BMT Artha Amanah Sanden, the development of micro- enterprises run by respondents (micro business actors) experienced an increase in sales turnover, increased business income, increased opportunities for business development, and fulfilled necessities of life. As stated by respondents to grocery stalls and food stalls, after obtaining financing from BMT Artha Amanah Sanden, the majority of the use of financing was to develop their business, including adding the types of goods sold, increasing stock of goods (an increase in consumer demand), expanding the place of business and others. All of this is done to get an increased sales turnover. The more demand for goods or the number of goods, the more increased income. Likewise for the Javanese sugar dream cake business, sales turnover can increase after receiving financing due to the addition of the types of goods sold (1 type to 5 types), additional stock of goods due to increased demand (10 kg of rice flour to 50 kg of rice flour) in one day, being known by many people (had been invited to TVRI), and the improved packaging (there is a P-IRT Office of Health permit and identity of the respondent). From the statements of the respondents in the organic baby porridge business, they were aware that the organic baby porridge business was in great demand motivating the respondents to add branches and increase stock and types of goods. With an increased demand for goods, a large stock of goods, and sales turnover, profits will increase with the assumption of ceteris paribus or other factors are considered constant. This research is in accordance with the research conducted by Putra and Hutasuhut (2018) and Yuliani et al. (2019) stating that there are significant differences in sales turnover indicators for MSME development before and after obtaining financing from BMT. This is in line with the theory put forward by Camelia and Ridlwan (2018) explaining that a business experiencing development can be marked by an increase in business sales turnover because when more goods are sold, the business sales turnover increases and will affect business profits which also increase with ceteris paribus conditions (ceteris paribus) and other factors which are considered constant. Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 254 Number of workers The results of the comparison of the number of workers before and after obtaining financing from BMT Artha Amanah KC Sanden show out of 50 respondents 0 respondents did not experience additional workers after obtaining financing, 12 respondents experienced additional workers after obtaining financing, and 38 respondents did not experience changes (fixed) between before and after obtaining financing. From the statements of the respondents (micro business actors) in the Java sugar cake business, there is an increase in consumer demand, both the customers and the wider community making the micro business actors in the Java sugar dream cake business increase their production of goods. As a result, it requires an additional workforce, which was initially 1 person then increased to 7 micro-entrepreneurs. Along with the financing from BMT Artha Amanah KC Sanden, this financing can be used to develop its business. Similarly, the same condition applies to micro-business actors in the organic baby porridge business. Seeing the prospect of demand for organic baby porridge, many enthusiasts encourage organic baby porridge micro-business actors to expand their business by opening several branches. Thus, the organic baby porridge micro business actors have to add a workforce, who initially had 4 workers to 7 workers. The increase in buyers/customers for merchandise encourages micro-business actors to increase their production output so that the need for labor also increases. The same thing was also experienced by micro- business actors selling meatball soup. They initially had 1 worker and after obtaining financing from BMT Artha Amanah KC Sanden, they added 3 workers. This is due to an increase in buyers and customers. The business actors who initially had 1 meatball cart now have 3 meatball carts. This research is in accordance with the research conducted by Kartawinata et al. (2020) and Barokah and Hanum (2016) stating that there is a significant difference in the number of workers in the development of MSMEs before and after obtaining financing from Islamic financial institutions. This is in line with the theory put forward by Camelia and Ridlwan (2018} which explains that business development is marked by an increase in the number of workers. This is because the number of requests for goods sold is high, so a lot of labor is needed with ceteris paribus conditions (other factors are considered constant). Number of Items Sold The results of the comparison of the number of goods sold before and after obtaining financing at BMT Artha Amanah KC Sanden show that out of 50 respondents, 0 respondents did not experience a decrease in the number of goods sold after obtaining financing, and 47 respondents experienced an increase in the number of goods sold after obtaining financing. Moreover, 3 respondents did not change (fixed) between before and after obtaining financing. Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 255 There was an increase in the number of goods sold before and after obtaining financing in line with the increase in sales turnover before and after obtaining financing. For the indicators of goods sold, the highest increase was experienced by one of the grocery shop respondents. From the results of interviews with these respondents at the beginning of the establishment of the grocery, the business was still simple and occupied one area. However, after the financing from BMT Artha Amanah KC Sanden, the respondents experienced an increasing number of interested buyers. The respondents tried to increase the number of goods sold and expand their place of business. This situation can be seen by the high number of goods sold which can reach 500% even though in terms of manpower it is managed alone. Furthermore, in the Javanese sugar dream cake business, the increase in goods sold can reach 400%. This situation is very relevant to the increasing demand for labor and the addition of raw materials. The same situation was also experienced by the leaf tempeh business which experienced an increase of 150%, the catfish seed business which experienced an increase of 133%, and the mobile meatball soup business which experienced a 100% increase. Furthermore, most other businesses also experienced an increase in goods sold even though it was still below 100. %. From the description above, it can be concluded that the increase in goods sold can be influenced by increased buyer interest, increased customers, additional merchandise that buyers are interested in, seller service (friendly, honest, and transparent), a clean and comfortable place of business, and prices that are affordable by people with ceteris paribus conditions (other factors are considered fixed). This is in line with the theory put forward by Camelia and Ridlwan (2018) which explains that the increased number or type of commodity goods offered will affect the attractiveness of buyers so that the number of customers and goods sold increase which will affect the sales turnover and the operating profit to be obtained with ceteris paribus conditions (other factors are considered constant. Number of Customers The results of a comparison of the number of customers before and after obtaining financing at BMT Artha Amanah Sanden show that out of 50 respondents, 0 respondents did not experience a decrease in the number of customers after obtaining financing, and 47 respondents experienced an increase in the number of customers after obtaining financing. Moreover, 3 respondents did not experience a change (fixed ) between before and after obtaining financing. turnover increase. Like the Java sugar dream cake, the customers before the financing with the customers after obtaining financing have increased by 150%. This situation is in line with the increase in the number of goods sold before and after obtaining financing reaching 400% as well as the addition of manpower. The Javanese sugar dream cake business is an example of a micro-enterprise that is experiencing rapid development in terms of sales turnover, the addition of goods sold, customers, and workforce. Other micro-enterprises also experienced an increase in terms of sales turnover, goods sold, labor, and customers, but not as fast as the Javanese sugar dream cake business. For other Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 256 business actors, almost 94% experienced an increase in the number of customers after obtaining financing from BMT Artha Amanah KC Sanden although it did not reach 100%. The research conducted by Kartawinata et al. (2020) is in line with the research by Saparingga et al. (2014) proving that there is a significant difference in the number of customers in the development of MSMEs before and after obtaining financing from Islamic financial institutions. In line with the theory put forward by Prastiawati and Satya Darma (2016), a business that experiences development is marked by an increase in business sales turnover followed by an increase in profits as well as the number of customers. In addition, if the workforce increases, it indicates that the customer's demand for the goods sold is high, so additional workers are needed to fulfill customer desires with ceteris paribus conditions (other factors are considered constant). Conclusion This paper aims to determine the differences in the sales turnover, the number of workers, the number of goods sold, and the number of customers before and after using financing at BMT Artha Amanah Sanden. The analytical tool used is the non-parametric analysis method of the Wilcoxon Sign Rank Test. Based on the results of the analysis, it is found that: (1) There is a difference between sales turnover before and after financing from BMT Artha Amanah KC Sanden. (2) There is a difference between the number of workers before and after financing from BMT Artha Amanah KC Sanden. (3) There is a difference between the number of goods sold before and after financing from BMT Artha Amanah KC Sanden. (4) There is a difference between the number of customers before and after financing from BMT Artha Amanah KC Sanden. The implication of this research is that legally it is necessary to have instruments to strengthen Sharia microfinance institutions from the government. Secondly, Islamic microfinance institutions are socially the right financial institutions to assist MSMEs. Thirdly, Sharia microfinance institutions economically have the advantage of advancing micro-entrepreneurs. Theoretically, co-financing is an effective method of financing, especially microfinance financing. MSMEs also have various obstacles and problems, especially in the first case, financial or lack of capital, both in quantity and in terms of sources, due to the limited access faced by MSMEs actors to use financing in formal financial institutions such as banks, causing them to borrow capital in an easy way from relatives, family, or loan sharks (Aisyah, 2018; Faisol, 2017; Feyisa & Tamene 2019; Rini, 2017; Godke Veiga & McCahery, 2019). Second, the lack of managerial skills and operating skills in organizing and limited marketing (Abror et al., 2019; Aisyah, 2018; Saleh et al., 2017; Suhartanto et al., 2019). Third, the skills of MSMEs actors in terms of business management are still traditional, and also the quality of human resources (HR) is inadequate. To overcome the problems faced by MSMEs, a microfinance institution is needed which is expected to be able to develop better MSMEs. The limitations of this study are the relatively small research data, due to limitations in managing customer data from Islamic microfinance institutions. Second, Islamic Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 257 microfinance institutions that are used as research objects are still very limited in number. A suggestion for further research is to increase the research data to conclude a representative pattern of financing between Islamic microfinance institutions and micro- entrepreneurs. References Abror, A., Patrisia, D., Engriani, Y., Evanita, S., Yasri, Y., & Dastgir, S. (2019). Service quality, religiosity, customer satisfaction, customer engagement and Islamic bank’s customer loyalty. Journal of Islamic Marketing, 11(6), 1691–1705. https://doi.org/10.1108/jima-03- 2019-0044 Aisyah, M. (2018). Islamic Bank Service Quality and Its Impact on Indonesian Customers’ Satisfaction and Loyalty. Al-Iqtishad: Jurnal Ilmu Ekonomi Syariah, 10(2). https://doi.org/10.15408/aiq.v10i2.7135 Ali, A. H., Abu-Hadi, A. O., & Ali, A. Y. (2013). The Accessibility of Microfinance for Small Businesses in Mogadishu, Somalia. Anggraeni, L., Puspitasari, H., El Ayyubi, S., & Wiliasih, R. (2013). Akses UMKM terhadap Pembiayaan Mikro Syariah dan Dampaknya terhadap Perkembangan Usaha: Kasus BMT Tadbiirul Ummah, Kabupaten Bogor. Al-Muzara’ah, 1(1), 56–67. https://doi.org/10.29244/jam.1.1.56-67 Barokah, S., & Hanum, A. N. (2016). Analisis Persepsi Nasabah Dan Perkembangan Umkm Setelah Memperoleh Pembiayaan Mudharabah (Studi Kasus BPRS Binama Kota Semarang). MAKSIMUM, 3(2), 34. https://doi.org/10.26714/mki.3.2.2013.34-41 Camelia, D., & Ridlwan, A. A. (2018). Peran Pembiayaan Murabahah Terhadap Perkembangan Usaha dan Kesejahteraan Pelaku UMKM Pasar Tradisional. Jurnal Ekonomi Islam, 1(3). Retrieved from https://ejournal.unesa.ac.id/index.php/jei/article/view/25825 Chandra, P. E. (2000). Trik Sukses Menuju Sukses. Yogyakarta: Grafika Indah. Cuong Pham, D., & Xuan Hong Nguyen, T. (2019). The influence of privatization on financial performance of Vietnamese privatized state-owned enterprises. Investment Management and Financial Innovations, 16(3), 341–352. https://doi.org/10.21511/imfi.16(3).2019.30 Faisol, F. (2017). Islamic Bank Financing and It’s Impact on Small Medium Enterprise’s Performance. ETIKONOMI, 16(1), 13–24. https://doi.org/10.15408/etk.v16i1.4404 Fakhrunnas. F. (2020). Total financing of Islamic rural banks and regional macroeconomic factors: A dynamic panel approach. Jurnal Ekonomi & Studi Pembangunan, 21(1), 1-15. https://doi.org/10.18196/jesp.21.1.5028 Feyisa, B. D., & Tamene, K. A. (2019). The Roles of Micro and Small Enterprises in Empowering Women: The Case of Jimma Town, Ethiopia. International Journal of Multicultural and Multireligious Understanding, 6(2), 139. https://doi.org/10.18415/ijmmu.v6i2.697 Godke Veiga, M., & McCahery, J. A. (2019). The Financing of Small and Medium-Sized Enterprises: An Analysis of the Financing Gap in Brazil. European Business Organization Law Review, 20(4), 633–664. https://doi.org/10.1007/s40804-019-00167-7 Herdian, O. (2015). Peranan Koperasi Simpan Pinjam Dalam Memberikan Kredit Terhadap Pengembangan Industri Kecil di Kecamatan Tanah Putih Kabupaten Rokan Hilir. Jom FEKON, 2(2). Retrieved from https://jom.unri.ac.id/index.php/JOMFEKON/article/view/11665 Jubaedah , S., & Destiana, R. (2015). Implikasi Pembiayaan Syariah Terhadap Usaha Mikro, Kecil, dan Menengah (UMKM) di Kabupaten Cirebon. Jurnal Logika, 15(3). Retrieved from http://jurnal.ugj.ac.id/index.php/logika/article/view/89 https://doi.org/10.1108/jima-03-2019-0044 https://doi.org/10.1108/jima-03-2019-0044 https://doi.org/10.15408/aiq.v10i2.7135 https://doi.org/10.29244/jam.1.1.56-67 https://doi.org/10.26714/mki.3.2.2013.34-41 https://ejournal.unesa.ac.id/index.php/jei/article/view/25825 https://doi.org/10.21511/imfi.16(3).2019.30 https://doi.org/10.15408/etk.v16i1.4404 https://doi.org/10.18196/jesp.21.1.5028 https://doi.org/10.18415/ijmmu.v6i2.697 https://doi.org/10.1007/s40804-019-00167-7 https://jom.unri.ac.id/index.php/JOMFEKON/article/view/11665 http://jurnal.ugj.ac.id/index.php/logika/article/view/89 Fathurrahman & Mutmainah The role of sharia microfinance in micro business development Jurnal Ekonomi & Studi Pembangunan, 2023 | 258 Kartawinata, B. R., Wijayangka, C., Dabinda, H. R., & Aprilia, S. (2020). Analisis Perkembangan Usaha Mikro, Kecil dan Menengah (Umkm) Sebelum dan Sesudah Memperoleh Pembiayaan dari Lembaga Keuangan Syariah. ECo-Buss, 2(2), 22–29. https://doi.org/10.32877/eb.v2i2.108 Kuncoro, M. (2009). Metode Riset untuk Bisnis & Ekonomi 3rd Ed. Jakarta: Erlangga. Majalah Treasury Indonesia. (2022). Satukan Sinergi, Bahu-Membahu Dorong UMKM Bangkit dari Dampak Pandemi. Maryati, S. (2014). Peran Bank Pembiayaan Rakyat Syariah dalam Pengembangan UMKM dan Agribisnis Pedesaan di Sumatera Barat. Economica, 3(1), 1–17. https://doi.org/10.22202/economica.2014.v3.i1.231 Prastiawati, F., & Satya Darma, E. (2016). Peran Pembiayaan Baitul Maal Wat Tamwil Terhadap Perkembangan Usaha dan Peningkatan Kesejahteraan Anggotanya dari Sektor Mikro Pedagang Pasar Tradisional. Jurnal Akuntansi Dan Investasi, 17(2), 197–208. https://doi.org/10.18196/jai.2016.0055.197-208 Putra, A., & Hutasuhut, J. (2018). Analisis Perkembangan Usaha Mikro dan Kecil Setelah Memperoleh Pembiayaan Mudharabah Dari BMT Khalifah Amanah Kecamatan Percut Sei Tuan. Prosiding Seminar Nasional Hasil Penelitian. Retrieved from https://e- prosiding.umnaw.ac.id/index.php/penelitian/article/view/4 Rini, H. Z. (2017). Peran Perbankan Syariah terhadap Eksistensi UMKM Industri Rumah Tangga Batik. Academica : Journal of Multidisciplinary Studies, 1(1), 67–80. https://doi.org/10.22515/academica.v1i1.750 Ritonga, H. (2019). Peranan Baitul Maal Wat Tamwil Dalam Pemberdayaan Usaha Mikro dan Kecil Menengah Amanah Ummah Surabaya. Jurnal Hukum Ekonomi, 5(1), 72-94. Retrieved from http://jurnal.iain- padangsidimpuan.ac.id/index.php/yurisprudentia/article/view/1728 Saleh, M. A., Quazi, A., Keating, B., & Gaur, S. S. (2017). Quality and image of banking services: a comparative study of conventional and Islamic banks. International Journal of Bank Marketing, 35(6), 878–902. https://doi.org/10.1108/ijbm-08-2016-0111 Siyad, A. D. (2013). The Effect Of Microfinance Institution Lending On The Growth Of Small And Medium Enterprise In Somalia. Soemitro, A. (2009). Bank dan Lembaga Keuangan Syariah. Jakarta: Kencana. Suhartanto, D., Gan, C., Sarah, I. S., & Setiawan, S. (2019). Loyalty towards Islamic banking: service quality, emotional or religious driven? Journal of Islamic Marketing, 11(1), 66–80. https://doi.org/10.1108/jima-01-2018-0007 Yuliani, Y., Fuad, Z., & Nurasiah, N. (2019). Analisis Pengaruh Pembiayaan Baitul Maal Wat Tamwil Terhadap Perkembangan Usaha Nasabah (Studi Kasus Di BMT Pradesa Mitra Mandiri Kabupaten Langkat). Jurnal Tansiq, 2(2), 224-236. Retrieved from http://jurnal.uinsu.ac.id/index.php/tansiq/article/view/6505 https://doi.org/10.32877/eb.v2i2.108 https://doi.org/10.22202/economica.2014.v3.i1.231 https://doi.org/10.18196/jai.2016.0055.197-208 https://e-prosiding.umnaw.ac.id/index.php/penelitian/article/view/4 https://e-prosiding.umnaw.ac.id/index.php/penelitian/article/view/4 https://doi.org/10.22515/academica.v1i1.750 http://jurnal.iain-padangsidimpuan.ac.id/index.php/yurisprudentia/article/view/1728 http://jurnal.iain-padangsidimpuan.ac.id/index.php/yurisprudentia/article/view/1728 https://doi.org/10.1108/ijbm-08-2016-0111 https://doi.org/10.1108/jima-01-2018-0007 http://jurnal.uinsu.ac.id/index.php/tansiq/article/view/6505