Financial Management Practice on Religious Micro-Entrepreneurs (Study on Nahdlatul Ulama Micro-Entrepreneurs in Blitar Regency, Indonesia)

Abstract

MSMEs are an essential means of overcoming the problems of job creation, sustainable economic growth, equitable welfare, and income in Indonesia. The purpose of this research is to investigate the financial management practices of 33 micro-business actors who are members of The Nahdlatul Ulama Entrepreneurs (WIRANU) of the Blitar Regency. This research focuses on six components of financial management practice, including 1) financial planning and supervision; 2) accounting information; 3) financial analysis; 4) management accounting; 5) working capital management; 6) Investment decisions. The results showed that most Nahdlatul Ulama micro-entrepreneurs in Blitar Regency claimed to have practiced simple financial management. This simplicity is due to their business position as a side business to support the family economy. The simplicity of this application is also a reflection of santri's religious beliefs regarding God's destiny regarding his windfall and blessings.

Keywords: religious micro-entrepreneur, financial management practices, Nahdlatul Ulama

DOI: 10.7176/EJBM/14-5-05

Publication date:March 31^st 2022