Islamic Banking and Performance of Beneficial MSME’s in Sumbawa; Study of BMT Insan Samawa

Aims: The purpose of this research is to examine the role of Baitul Maal Wat Tamwil (BMT) Insan Samawa financing in the trade expansion and prosperity rises of its members from Sumbawa's small and medium-sized microbusinesses.

Study Design: Quantitative Research

Place and Duration of Study: BMT Insan Samawa Financing, between Mei 2022 and June 2022.

Methodology: The data was analyzed quantitatively using the smartPLS model with a survey approach. The purposive sampling technique yielded 40 respondents.

Results: The findings of this study show that financing has a significant positive effect on trade expansion, with the t statistic for the construct of financing and trade expansion being larger from 1,96 around 13,339 and the coefficient of latent variable financing on output path coefficient being around 0,729, indicating a positive effect of around 72,9% on trade expansion caused by the large of financing effect on trade expansion directly. Trade expansion has a significant positive effect on prosperity rises. The t statistic for the construct of financing on prosperity rises is greater than 1,96 around 6,120, and the coefficient of latent variable that is trade expansion on output path coefficient is around 0,633, which means that as the business grows, so will the welfare.

Conclusion: Financing has a significant effect on the growth of BMT Insan Samawa SMEs, as shown by the fact that the statistical t value for the PB constructs on PU is greater than 1.96, which is 13,339. This proves that PB has a significant effect on PU. Development business has a significant effect on improving the welfare of the BMT Insan Samawa UMKM with Output path coefficient shows that the statistical t value for the PU construct on PK is greater than 1.96, which is 6.120, so the effect given by PU on PK is proven to be significant.