The research aimed at finding out the difference of UMKM business development especially among the micro scale businessmen in Kalasan Sub-district between before and after receiving musyarakah financing from KSPPS Bina Warga Sejahtera Yogyakarta observed from the aspects of capital, turnover and profit. The research was descriptive quantitative in nature by using primary data. The data collection was through questionnaire distribution with representative sampling technique of 60 people. The analysis used in the research was Paired Sample T- Test with SPSS 21 application. The result of the research showed that musyarakah financing had a positive and significant influence towards the business development observed from the aspects of capital, turnover and business profit. From capital aspect, there was an increase after receiving musyarakah financing from micro scale business becoming small scale business of 3.3% with t count of -6.381 and p value of 0.000, from turnover aspect was 6.7% with t count value of -9.327 and p value of 0.000 and the profit aspect was 8.3% with t count value of -2.453 with p value of 0.017.