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The Role of Micro Waqf Bank in Women’s Micro-Business Empowerment through Islamic Social Finance: Mixed-Method Evidence from Mawaridussalam Indonesia

Author

Listed:
  • Andri Soemitra

    (Faculty of Islamic Economics and Business, Universitas Islam Negeri Sumatera Utara, Medan 20221, Indonesia)

  • Kusmilawaty

    (Faculty of Islamic Economics and Business, Universitas Islam Negeri Sumatera Utara, Medan 20221, Indonesia)

  • Tri Inda Fadhila Rahma

    (Faculty of Islamic Economics and Business, Universitas Islam Negeri Sumatera Utara, Medan 20221, Indonesia)

Abstract

This study examined the role of the Micro Waqf Bank in empowering women micro-entrepreneurs. This research used a mixed-method with an explanatory design. Quantitatively, this study examines the effect of the joint responsibility system, financing, and mentoring on the growth of the micro-enterprises business. The sample used was 200 women micro-entrepreneurs using a purposive sampling technique. Quantitative data analysis was performed using the Structural Equation Model based on Partial Least Squares (SEM PLS) technique. This research qualitatively analyzes how the Micro Waqf Bank has carried out its role in empowering women, including dealing with crises due to the COVID-19 pandemic. Thematic analysis was used as the qualitative data analysis technique. Informants in this study amounted to 6 informants from MWB Mawaridussalam consisting of Management, Mentors, and female micro-enterprises. The research results quantitatively indicate that there is a positive and significant impact on the joint responsibility system, financing, and mentoring on the development of micro-enterprise members. Mentoring is the most significant variable that impacts the growth of a micro-enterprise business. Qualitatively, the research results show the role of the Micro Waqf Bank in the economic empowerment of women micro-business entrepreneurs by specifically recommending reinforcement of the mentoring function.

Suggested Citation

  • Andri Soemitra & Kusmilawaty & Tri Inda Fadhila Rahma, 2022. "The Role of Micro Waqf Bank in Women’s Micro-Business Empowerment through Islamic Social Finance: Mixed-Method Evidence from Mawaridussalam Indonesia," Economies, MDPI, vol. 10(7), pages 1-19, July.
    • Handle: RePEc:gam:jecomi:v:10:y:2022:i:7:p:157-:d:853828
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    References listed on IDEAS

    as
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    6. Cameron, Alistair & Oak, Mandar & Shan, Yaping, 2021. "Peer monitoring and Islamic microfinance," Journal of Economic Behavior & Organization, Elsevier, vol. 184(C), pages 337-358.
    7. Nyarko, Samuel Anokye, 2022. "Gender discrimination and lending to women: The moderating effect of an international founder," International Business Review, Elsevier, vol. 31(4).
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