The Role of Ar-Rahnu as an Alternative in Reviving Micro-Enterprises Through Pandemic Crisis

Abstract

Both ar-Rahnu institutions and micro-entrepreneurs contribute greatly to the country’s economic growth. Unemployment and economic recession can be better-handled businesses are prepared to face any catastrophe, such as pandemics. Then, the aim of this study is to explore the use and role of ar-Rahnu as an alternative for micro-enterprises to revive in this pandemic crisis. The study will adopt a qualitative approach, gathering data from micro-entrepreneurs in the selected areas. Data from the in-depth interviews will be analyzed and categorized thematically to see how ar-Rahnu can help micro-entrepreneurs in reviving their businesses in this environment. It is expected that the findings of the study will identify various issues such as awareness, understanding, and acceptance of ar-Rahnu, which will then be used to prove that it is an alternative source of funds to help micro-entrepreneurs deal with the crisis. This study will also demonstrate the role that ar-Rahnu plays in safeguarding the financial security of micro-entrepreneurs. This study will not only benefit the individual entrepreneurs but also the society and institutions by explaining the role of ar-Rahnu in ensuring business continuity. Therefore, this research will give a broad review of the significance of Islamic pawnshops in improving the economy of businesses and the country after showing that they have a significant impact in overcoming this pandemic crisis.