EMPOWERING MSMES THROUGH THE INTEGRATION OF CASH WAQF: CASE STUDY OF MSME CENTRE TEGALWARU
Keywords:
Cash Waqf, MSME, Economic Empowerment, Community Venture Waqf ModelAbstract
Micro, small, and medium enterprises (MSMEs) play a significant role in economic development. However, there are variousl challenges that hinder the growth of MSMEs, such as limited access to financing. Furthermore, the widespread use of predatory lenders, such as Bank Emok, worsen the financial conditions of the community. Various initiatives have emerged to utilize cash waqf to empower MSMEs, though most remain at the conceptual model stage. This study investigates empirical evidence from a real-world application of cash waqf models to support MSMEs in Indonesia. Using a qualitative approach with expert interviews and SWOT analysis, this paper examined the case of the MSME Centre Tegalwaru. Findings reveal that the centre has successfully leveraged cash waqf to provide MSMEs with additional financing, human capital development, and business enablement. However, the centre also faced challenges in fundraising, high financing risk, and limited human resources. The proposed Community Venture Waqf Model is expected to open new sources of funding from tourists and corporations, mitigate risk through reserve fund or takaful, and promote collaboration with various stakeholders. Although limited to the Tegalwaru context, this research offers valuable insight for practitioners, regulators, and academicians interested in adapting similar waqf model to foster MSME’s growth and economic development in other regions.
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