Analysis Of Mudharabah And Musyarakah Financing By Islamic Banks For The Development Of Small And Medium Enterprises In Deli Serdang

This study aims to analyze the role of Islamic financing through mudharabah and musyarakah contracts provided by Bank Syariah Indonesia (BSI) in the development of micro, small, and medium enterprises (MSMEs) in Deli Serdang Regency. Profit-sharing financing is considered an alternative solution in the Islamic financial system that not only prioritizes financial aspects but also fairness and partnership between banks and customers. This study uses a descriptive qualitative approach with in-depth interviews with BSI and several MSME recipients of financing. The data were analyzed narratively and linked to contemporary theories over the last five years (2019–2024). The results show that the majority of MSME players have a fairly good understanding of Islamic financing as a profit-sharing and riba-free funding system. The main factors driving the choice of Islamic financing are religious values, the fairness of the profit-sharing system, and social support. The type of contract chosen is tailored to business needs, with Mudharabah chosen by customers who need full capital from the bank, while Musyarakah is used by actors who have joint capital contributions. Sharia financing has been proven to have a positive impact on business development, particularly in terms of increasing capital, turnover, and production capacity. However, the challenges faced include lengthy administrative procedures and limited financing ceilings. Overall, sharia financing is considered capable of becoming an instrument of equitable economic empowerment that is in accordance with sharia principles, with the proviso that there is a need to improve services, assistance, and ongoing education for MSME players.