The Role of Shariah Micro Financial Institution In Reducing Poverty

Poverty is a multi-faceted phenomenon of food insecurity, lack of basic necessities, and physical handicap. Poverty basically contains three broad approaches: basic needs, income approaches, and capability approaches. Sharia microfinance is the convergence of Islamic finance and microfinance. It has great potential to combine Islamic principles that focuses on the poor and disadvantaged with the mission of microfinance to reach the poor and give them financial access. This study intends to find out the factors that influence poverty and to see how Islamic Microfinance (IMF) as an alternative solution for empowering the poor. This study takes a case study of KSPPS or BMT KUBE Colomadu Sejahtera in Karanganyar Regency, Surakarta. The method used is the Logit model. The variables that influence and significantly affect poverty are income, the number of dependents, and training that are followed.