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Abstract

The relationship between poverty, SMEs, and Islamic microfinance is as close as two coats of paint. According to the Indonesia Bureau of Statistics (2023), there was approximately 9.57 percent of the total population of this country living under the poverty line in September 2022, vaguely inclined to 3 percent of the population in March 2022. This means that the number of poverty is still rising albeit slightly. In addition, the number of unemployed people in Indonesia remained high in 2020, compared to the previous year with an increase of 37.49% (Indonesia Bureau of Statistics, 2017). Hence, how can poverty be alleviated? In consonance with Khalid & Kalsom (2014), SMEs are one of the pivotal options for reducing poverty, and it is a must to acquaint their financing methods and willingness as they serve as the foundation for quickening economic growth. Asmy et al. (2020) affirmed that Islamic microfinance methods are finer suited to gratifying the financial needs of SMEs.