LEVEL OF WELFARE AMONG MEMBERS OF MOSQUE- BASED ISLAMIC COOPERATIVE: ANALYSIS OF SHARIA MICROFINANCE, BUSINESS DEVELOPMENT, SPIRITUAL CAPITAL, AND BUSINESS GROWTH AS INTERVENING FACTORS

Abstract

There is an imbalance in welfare between people with the upper middle economy and people with the lower middle economy. One of the causes is especially for large and small businesses because of the difficulty of accessing capital to banks, so that cooperatives become an alternative to these problems. The purpose of this study is to see the description and influence of sharia microfinance, business coaching, spiritual capital, and business development on the level of welfare of members of financing recipients at the Mosque-Based Sharia Cooperative in Bandung City (KSBM). The method used uses a quantitative approach. The analytical tool used is Partial Least Square-Structural Equation Modeling (PLS-SEM). The results show that Islamic microfinance and business coaching have a significant positive effect on business development. However, spiritual capital has no effect on business development. In addition, business development has a significant positive effect on the welfare of KSBM members. The implication of this research is that it can provide input related to the new model of Islamic cooperatives in Indonesia, namely the Mosque-Based Islamic Cooperative (KSBM). In addition, the existence of this KSBM is able to increase understanding of Islamic economics, especially in Islamic microfinance.