IOSR Journal of Economics and Finance (IOSR-JEF) e-ISSN: 2321-5933, p-ISSN: 2321-5925.Volume 11, Issue 3 Ser. II (May – June 2020), PP 10-17 www.iosrjournals.org DOI: 10.9790/5933-1103021017 www.iosrjournals.org 10 | Page The Contiuance Strategy of Micro Credit Agency in Developing a Small Trader in Riau Province - Indonesia Khaidir Saib 1 , Mohd Fuad Bin Mohd Salleh 2 Lecturers of Economics College Riau - Pekanbaru Abstract If BaitulMalwat-Tamwil has a strength strategy, why it is not doneby other Baitul Mal-Tamwil, even though the strategy and operating system are different in each region, but it does not become an obstacle to practice a strength strategy, it can reduce the difficulties of small entrepreneurs in running his business. If this problem is not resolved, then the result is Baitul Mal wat-Tamwil cannot serve low-income people and the problem of small traders who need capital cannot be resolved, because Baitul Mal wat-Tamwil does not have the capacity to carry out its role as a Micro Credit Institution. To see that it can be practiced by Baitul Mal Wat-Tamwil in other regions, the researchers are interested in learning and understanding the power of business strategy. To achieve this goal, the researcher, through this research, seeks to identify and understand what strategies affect the continuity of Baitul Mal Wat-Tamwil. Riau Province was chosen as the research area because in this province Baitul Mal Wat-Tamwil has many problems according to the Central Statistics Agency of Riau (CPS Riau, 2013). The method used in this research is qualitative method. Qualitative research methods are best used (Cannon, 1998). Therefore, qualitative methods that focus on meaning or meaning in factual contexts can meet the data to understand this question. Case studies, which are one of the methods in qualitative research, are able to set limits in terms of scope, time, respondents, place, and also allow in-depth research. The conclusion of this study is that there are three strategies implemented by Baitul Mal Wat-Tamwil in carrying out its operations. The three strategies are capital access skills, distribution of third party funds and the ability to resolve problem loans. Keywords: Micro Credit Agencies, Small Traders --------------------------------------------------------------------------------------------------------------------------------------- Date of Submission: 01-05-2020 Date of Acceptance: 14-05-2020 --------------------------------------------------------------------------------------------------------------------------------------- I. Statement of Problems Baitul Mal Wat-Tamwil is one of the most successful Micro Credit Institutions in the lower middle class, small businesses and low income people. The agency also involves the middle and upper classes. This is often used by small communities who need capital to run a business, where it acts as a business partner with a revenue sharing system. Baitul Mal Wat-Tamwil has the power to collect public funds and channels them in the form of financing or micro credit, so that their existence can solve the problems of low-income people, especially for small businesses that need capital. In addition, it also has special features compared to other Micro Credit Institutions, one of which is the ease of providing financing. Many people take advantage of the existence of Baitul Mal wat-Tamwil as an alternative to get capital loans. Given this situation, a better security network is needed so that the existence of Baitul Mal wat-Tamwil develops. Although some parts of Baitul mal wat-Tamwil in Riau Province, they have a strong strategy and have shown success in solving some of the problems of poverty and small business capital. However, a statement from the chairman of the BMT association in Riau Province stated that there were still some weaknesses in several Baitul Mal wat-Tamwil, especially in the Riau region, among others, 1) management weaknesses, the management function was an important factor in running the BMT business. Many BMT businesses are started by people with no management experience, 2) the control system is not functioning. It was not applied at the beginning of the BMT business, 3) inadequate capital was also a factor in the failure of the BMT business in Riau until the manager experienced major problems and as a result BMT failed to maintain its efforts. Therefore, this issue is very important and needs to be done in more depth. The following is data on the number of Baitul Mal wat-Tamwil and the problematic Micro Credit Agency in Riau Province. Table 1.1 below: Schedule 1.1 Overview of Micro Credit Agents with problems No Agency Category Total On Problem 1 Credit coorporation 1,071 179 2 Village Granary 1,294 123 3 Village Social Institutions 400 73 4 Small People's Business 1,160 14