Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia

Research Article

Small and Medium-Sized Enterprises (SMEs), Islamic Bank, and Religiosity

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  • @INPROCEEDINGS{10.4108/eai.8-10-2018.2288721,
        author={Isnaini  Harahap and Amiur  Nuruddin and Chuzaimah  Batubara and Mhd.  Syahnan and Sukiati  Sukiati},
        title={Small and Medium-Sized Enterprises (SMEs), Islamic Bank, and Religiosity },
        proceedings={Proceedings of the 1st International Conference on Economics, Management, Accounting and Business, ICEMAB 2018, 8-9 October 2018, Medan, North Sumatra, Indonesia},
        publisher={EAI},
        proceedings_a={ICEMAB},
        year={2019},
        month={10},
        keywords={small and medium-sized enterprises (smes) islamic banks north sumatra economic},
        doi={10.4108/eai.8-10-2018.2288721}
    }
    
  • Isnaini Harahap
    Amiur Nuruddin
    Chuzaimah Batubara
    Mhd. Syahnan
    Sukiati Sukiati
    Year: 2019
    Small and Medium-Sized Enterprises (SMEs), Islamic Bank, and Religiosity
    ICEMAB
    EAI
    DOI: 10.4108/eai.8-10-2018.2288721
Isnaini Harahap1,*, Amiur Nuruddin1, Chuzaimah Batubara1, Mhd. Syahnan1, Sukiati Sukiati1
  • 1: Universitas Islam Negeri Sumatera Utara, Indonesia
*Contact email: isnaini.harahap@uinsu.ac.id

Abstract

This paper attempts to examine the role played by Small and Medium-sized Enterprises (SMEs) in absorbing workforce in North Sumatra. This paper argues that the SME sector succeeded facing the impact of the economic crisis in 1998, 2008, and the European crisis in 2011. Based on the findings of this study, it can be concluded that education, labor force, financing, profit sharing, and religiosity have simultaneously given a positive impact on SMEs in North Sumatra. Even though it is influential, the coefficient of elasticity for profit, financing, education, labor force, and religiosity is inelastic towards the development of SMEs in North Sumatra. The findings imply that Islamic banks are unable to deal with the SMEs market. Thus, it requires serious attention from Islamic banks to play important role in developing SMEs in North Sumatra.