The Role of Mudharabah Contracts Towards MSME Capitalization in Samarinda

Abstract

This study aims to analyze the role of mudharabah contracts in supporting capital for Micro, Small, and Medium Enterprises (MSMEs) in Samarinda, with a case study on the Sharia Savings and Loans and Financing Cooperative (KSPP) Quantum Mandiri Madani. The mudharabah contract is one of the sharia financial instruments that has a potential to help capitalizing MSMEs through a profit-sharing scheme, where the capital owner provides funds to the business manager, and the profits are shared based on the agreement. This study uses a qualitative descriptive method with primary data collected through in-depth interviews and observations of three informants, namely two MSME business actors and one KSPP member. The results of the study indicate that the mudharabah contract has a positive impact on the development of MSMEs, especially in increasing production capacity and expanding the market. However, challenges such as market fluctuations and business management are still obstacles for some business actors in fulfilling profit-sharing obligations. The novelty of this study lies in the in-depth analysis of the implementation of the mudharabah contract in Samarinda, which is still rarely explored, and its impact on MSME capital. This research provides important implications for the development of more efficient and sustainable sharia financing schemes, particularly in supporting small businesses in the regions.