Proper funding is one of the biggest problem faced by micro and small entrepreneurs. Funding or Capital financing is usually very limited. Meanwhile, existing banking institutions include shari'a banking initiate with various requirements so complicated for micro and small-enterprises/SMEs to attain. The existence of shari'a microfinance institutions which are currently in the form of BMTs can be found in almost every villages or small town. BMT, as part of shari'a coordination, is a microfinance institution that plays a role as a banking institution, i.e. collecting, distributing and providing services can be an alternative for micro and small entrepreneurs. BMT as a companion institution for the distribution of SME, would be the right partner, compared to banking institutions. Thus, it is expected that BMT as a shari’a cooperative or microfinance institution has to improve its performance. In exchange, the empowerment in micro and small businesses through financial assistance can be effective, especially in terms of funding management, membership and financing must be continuously improved.

Keywords : Shari’a Banking, Murābaha, Mushāraka, SME.