SADIQ, Sulaiman
Department of Accounting
Faculty of Management Sciences,
Bayero University, Kano
SADIQ, Rabiu Abdullahi
Department of Accounting, Bayero University Kano
This study analysed the effectiveness of musharakah financing for empowering micro-businesses from the
perspective of entrepreneurs in Kano State. This research is qualitative in nature, and used a critical analysis
method. Interview was the research instrument used to determine factors affecting the effectiveness of
musharakah financing in empowering micro-small businesses of Baitul Maal wat Tamwil (BMT)
entrepreneurs in the Kano State Entrepreneurs from two BMT in Kano State had been interviewed. The
results showed that BMT musharakah financing played an important role in the business development of
Micro and Small businesses, especially in terms of increasing business capital, easy access to take
financing, and a small number of installments. In addition, musharakah financing is effective in
encouraging Micro and Small Enterprises (MSEs) empowerment, to increase the amount of merchandise
inventory, add new types of products, expand businesses and add new equipment for business facilities.
This study limits the ability to generate findings to a larger population of small scale enterprises which
obtain Sha’riah financing from Islamic microfinance institutions (Baitul Maal Wat Tamwil) in Kano State.
The research findings can be used on how to empower small scale enterprises with Islamic financing and
the development of Islamic microfinance institutions. This paper has contributed to the approach of
empowering small micro-businesses with musharakah financing, which is considered to have a less
contribution to BMT income. In addition, this study uses a critical analysis method to get a new perspective
on the use of musharakah financing from the view of small entrepreneurs.

Keywords: micro-businesses, micro and small enterprises, musharakah financing, Sha’riah financing

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