Profit-sharing mudharabah transaction in chicken farming businesses: Exploring the benefits and challenges in sharia village owned enterprises-RIAU

The implementation of Mudharabah for chicken farming businesses in Sharia Village-Owned Enterprises (BUMDes Syariah) faces quite big challenges related to understanding concepts and business risk management. The aim is to identify the benefits and challenges of implementing Mudarabah. The method used was a case study approach involving five administrators as informants using qualitative descriptive analysis techniques. The results show that although the implementation of Mudharabah profit sharing has had a positive impact on increasing capital and chicken farming business performance, there are several obstacles such as a lack of understanding of the Mudharabah concept and weak risk management. So intensive training and assistance is needed from sharia financial institutions regarding the proper implementation of Mudharabah. This research has implications for the development of Islamic economic theory and provides practical guidance for managers in optimizing the implementation of Mudharabah. This research underlines the need for more in-depth education and training as well as government policy support for the successful implementation of Mudharabah in the livestock sector and other small and medium enterprises.