THE EFFECT OF MUDHARABAH FINANCING AND FINANCIAL MANAGEMENT ON THE DEVELOPMENT OF MSMEs IN THE TOURISM AREA OF TULUNG SUBDISTRICT

Abstract

MSMEs are essential in creating jobs and supporting economic growth, especially in Tulung, Klaten, Central Java tourist areas. However, capital constraints and financial management are challenges that often hinder the development of MSMEs. To solve capital problems, mudharabah financing was chosen as a Sharia-based alternative that can be accessed without collateral and interest. On the other hand, implementing good financial management is believed to optimize the development of MSMEs. This research aims to determine the influence of mudharabah financing and financial management on developing MSMEs. Quantitative methods were used with an associative approach involving 60 respondents through purposive sampling. Primary data was obtained through distributing questionnaires, and analysis was carried out using multiple linear regression. The research results show that mudharabah financing and financial management, both partially and simultaneously, significantly affect the development of MSMEs.