Open AccessIslamic Micro Finance and Its Impact on Poverty Reduction of Two Village Models in Bogor, Indonesia
Author(s) -
Mustica Bintang Sabiti,
Jaenal Effendi
Publication year - 2017
Publication title -
signifikan
Language(s) - English
Resource type - Journals
eISSN - 2476-9223
pISSN - 2087-2046
DOI - 10.15408/sjie.v6i1.4337
Subject(s) - microfinance , likert scale , islam , poverty reduction , poverty , business , micro finance , economics , economic growth , geography , statistics , mathematics , archaeology
The purpose of this paper is to identify the effectiveness of Islamic microfinance institutions and their impact on poverty reduction in two types of rural areas in the district of Bogor, Indonesia. This research uses descriptive analysis, using a likert’s scale and with a paired sample t test to determine the impact of Islamic micro finance to micro business performance. Multiple regression is also used to see the effect of the types of villages in the implementation of micro-enterprise businesses. The results show that the Islamic micro financing has affected the effectiveness of the income and expenditure aspects, but also quite effective in the aspect of profit and use in expenditure. Furthermore, funding-based Islamic microfinance also has a positive influence on business micro and poverty reduction.DOI: 10.15408/sjie.v6i1.4337