Strengthening islamic micro-financing and micro-enterprises development program

Abstract

We believe that micro-enterprise development could be used as one of the most diverse and dynamic approaches to poverty alleviation and we have evidence that Islamic micro-financing is effective for micro-enterprises development program. However, it is still need to be strengthened. Therefore, the objective of this paper is, to explore how Islamic micro-financing and micro-enterprises development program can be strengthened. Micro-enterprises development is not only enough by providing financial services, but also needs the wider range of other services. Islamic concept of development has a comprehensive character. It includes moral, spiritual and material aspect. Poverty is not only an economic issue; but it has moral, social and political dimension as well. Then, micro-enterprises development and poverty alleviation program in Muslim societies should be multi-dimensional to implement Islam's moral vision. It needs an integrated program. Spiritual development via internalizing Islamic moral value in entrepreneur's consciousness (akhlaq) constitutes an important factor and the involvement of religious proselytizing ( da'wah) institutions is necessary. To complete the program, the provision of social support system (mutual guarantee and solidarity) - in the form of zakah and shadaqah or other voluntary charities - is also necessary. It is useful to overcome the likelihood of business failure of the participants of Islamic micro-financing.