Shariah rural bank in empowering the small and micro enterprises: strategies and differentiations
by Muhammad Said; Abdul Hamid; Dudu Duswara Machmuddin
International Journal of Business and Globalisation (IJBG), Vol. 25, No. 1, 2020

Abstract: This study aims at exploring the business networks of Shariah rural banks to compete in multi-business competition; the differentiation of BPRS in competitive business environments in building market share; and the domino effects of the Shariah rural bank lending activity in the community development of the rural areas. This study applied qualitative approach with in-depth interview with the manager, financing unit, financed customers and the micro and small enterprises actors, observation and documentation. The findings show that Shariah rural bank developed a market share network using religious emotion, approaching public figures, leaders of Islamic organisations, and individual customers including non-Muslim. SRB applied mosque-based empowerment to train the actors of SMEs, build product innovation and social capital. These differentiation indicates BPRS is not merely a business agent for the sake of economy but also carries out public education, and social function, especially in creating social cohesion, social responsibility and social solidarity and human capital.

Online publication date: Tue, 23-Jun-2020

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