THE EFFECT OF MURABAHAH FINANCING ON MICRO BUSINESS GROWTH IN ISLAMIC FINANCIAL INSTITUTIONS

Micro enterprises play a strategic role in the national economy, and Islamic financing through murabahah contracts serves as a key instrument in empowering this sector. This study aims to analyze the effect of murabahah financing on the growth of micro businesses supported by Islamic financial institutions. A descriptive qualitative approach was applied, using in-depth interviews with 30 micro-entrepreneurs who received murabahah financing, along with documentation from relevant financial institutions. The findings indicate that murabahah financing positively contributes to the growth of revenue, business assets, and employment, although its effectiveness is strongly influenced by financial literacy and the presence of business mentoring. These findings imply the necessity of integrating financing distribution with continuous education, ensuring that murabahah financing functions not only as a financial tool but also as a sustainable means of empowering microeconomic actors.