Gender-based Acceptance of Ar-Rahnu Among Muslim Micro-Entrepreneurs

Women entrepreneurs often encounter difficulty in obtaining capital financing. Banks are hesitant to offer loans to women entrepreneurs due to their small-scale businesses. As one of the services that provide microcredit financing to entrepreneurs, Ar-Rahnu offers excellent opportunities to small entrepreneurs to acquire funds for their entrepreneurial activities. The objective of this study is to identify and analyze the acceptance of Ar-Rahnu based on gender among Muslim micro-entrepreneurs in Kelantan. Quantitative research was used in this study through the distribution of questionnaires to Muslim micro-entrepreneurs in Kelantan. Empirical research was conducted to answer all research objectives. The results were analyzed using the Statistical Package for Social Science (SPSS) version 22.0 software through descriptive statistics, and inference (t-test) was used to analyze the primary data obtained. The findings of this study found that there was a significant difference in the number of women and men entrepreneurs in Kelantan. Women entrepreneurs dominate business, particularly in large markets around Kelantan. In addition, there was a significant difference in the acceptance of Muslim small entrepreneurs in Kelantan according to gender. Thus, it was found that women entrepreneurs in Kelantan accepted Ar-Rahnu more positively than male entrepreneurs. This implies that women entrepreneurs are pivotal for the development of Ar-Rahnu in Kelantan due to their significant participation in this micro-credit scheme. It is suggested that the Ar-Rahnu institutions in Kelantan elevate their efficiency in the future by spreading the inherent benefits to entrepreneurs as one of the Islamic financing approaches. Therefore, small capital and financial problems among entrepreneurs can be overcome.