Optimizing MSME income through the golden door: study of sharia financial literacy
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Published:
Nov 15, 2023
Keywords:
Income, MSMEs, Sharia Financial Literacy
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Economy
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Abstract
One of the reasons for the low performance of MSMEs in Indonesia is limited access to funds, which is largely caused by a lack of understanding and knowledge of MSMEs regarding financial institutions. Currently, the Islamic finance sector has experienced rapid growth, with various financial institutions providing financial products and services based on Islamic principles. This research aims to assess the level of sharia financial literacy and identify factors that influence the level of sharia financial literacy and their impact on the development of MSME businesses in the region. The research method used was a descriptive survey and an explanatory survey, with 33 MSMEs as respondents. Descriptive analysis is used to evaluate research data, and simple regression tests are used to identify relationships between the variables studied. The research results show that only the variables "Length of Business" and "Number of Employees" have a significant influence on the level of financial knowledge. Meanwhile, demographic variables have no effect on the financial behavior and attitudes of street vendors. Only financial behavior has an influence on the development of street vendors' businesses, while financial knowledge and financial attitudes do not have a significant influence on the development of the business.
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How to Cite
Irdiana, S. (2023) “Optimizing MSME income through the golden door: study of sharia financial literacy”, Jurnal Mantik, 7(3), pp. 2096-2100. doi: 10.35335/mantik.v7i3.4296.
References
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Annisa, A. A. (2021). Islamic Financial Literacy Cycle in the Family. Indonesian Journal of Islamic Economics Research, 3(1), 39–50.
Curvelo, I. C. G., Watanabe, E. A. de M., & Alfinito, S. (2019). Purchase intention of organic food under the influence of attributes, consumer trust and perceived value. Revista de Gestão, 26(3), 198–211.
Esya, L., Kusumastuti, S. Y., Curry, K., Amelia, M., & Kristina, I. (2022). Islamic Financial Literacy For MSMEs During The Pandemic. Jurnal Akal:Abdimas Dan Kearifan Lokal, 3(2), 231–244.
Fatah Yasin, R. F., Mahmud, M. W., & Diniyya, A. A. (2020). Significance of Financial Literacy among Women Entrepreneur on Halal Business. Journal of Halal Industry & Services, 3, 1–9. https://doi.org/10.36877/jhis.a0000076
Habriyanto, Trianto, B., Azman, N. H. N., Busriadi, Muchtar, E. H., & Barus, E. E. (2022). Does The Component of Islamic Financial Literacy Affect on MSMEs Decision in Islamic Banking Financing?: Creative Economy Investigate. International Journal of Islamic Business and Economics (IJIBEC), 6(2), 138–147. https://doi.org/10.28918/ijibec.v6i2.6090
HedisMarlina Yuneline, M. (2022). Implications of Shariah Financial Technology in Increasing Financial Inclusion to Micro, Small, and Medium Enterprises Implikasi Fintech Syariah dalam Peningkatan Inklusi Keuangan pada Usaha Mikro, Kecil, dan Menengah. Islamiyyat, 44(1), 89–99.
Hikmah, R., Djuwita, D., & Widagdo, R. (2019). Effect of Financial Literation and Financing-Effectivity toward the Growth of Small Enterprises: Case Study in Bank Syariah Mandiri, Majalengka. AL-FALAH?: Journal of Islamic Economics, 4(2), 163. https://doi.org/10.29240/alfalah.v4i2.941
Lestari, M. D., Kantun, S., Hartanto, W., Suharso, P., & Widodo, J. (2020). Analysis of the financial literacy level of Micro, Small and Medium Enterprises (MSMEs) in Jember, East Java, Indonesia. IOP Conference Series: Earth and Environmental Science, 485(1). https://doi.org/10.1088/1755-1315/485/1/012128
Maulidya, M., & Putra, R. (2023). The Effect of Perceptions of Profit Sharing, Islamic Financial Literacy, and E-Banking on Customer Interests in Using Bank Syariah Indonesia (BSI) Services Religiosity as …. Jurnal Ekonomi Syariah Indonesia (JESI), XIII(2), 225–244.
Meijer, G. W., Lähteenmäki, L., Stadler, R. H., & Weiss, J. (2021). Issues surrounding consumer trust and acceptance of existing and emerging food processing technologies. Critical Reviews in Food Science and Nutrition, 61(1), 97–115.
Menne, F., Mardjuni, S., Yusuf, M., Ruslan, M., Arifuddin, A., & Iskandar, I. (2023). Sharia Economy, Islamic Financial Performance and Factors That Influence It—Evidence from Indonesia. Economies, 11(4), 111.
Menne, F., Surya, B., Yusuf, M., Suriani, S., Ruslan, M., & Iskandar, I. (2022). Optimizing the financial performance of smes based on sharia economy: Perspective of economic business sustainability and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 18.
Mutiara Savitri, F., Maulana, A. S., Perwita, A. D., & Saptana, S. (2021). The Effect of Sharia Financial Access & Financial Literation to Non-Bankable MSMEs Growth. Velocity: Journal of Sharia Finance and Banking, 1(2), 68–78. https://doi.org/10.28918/velocity.v1i2.4606
Nugraha, D. P., Gufron, I. A., Pringgondani, P., & Ilhamdi, I. (2022). The Effect of Sharia Financial Literature, Government Support and Sharia Fintech on MSME Sustainability. Enrichment: Journal of Management, 12(2), 1365–1372.
Olivia, H., Astuty, W., Sijauta, D., Radhiyah, & Yovi, M. (2023). Factors Influencing MSMEs In Choosing Transactions In Sharia Financial Institutions and ITS Impact on Increasing Income (Case Study of MSMEs Actors in Binjai, North Sumatera). Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 6(3), 2737–2756.
Purwanto, P., Fitriyani, Y., & Lidasan, D. M. S. (2021). Financing of The Medium, Small and Micro Enterprises Sector By Sharia Banking: Positive Effects on Economic Growth and Negative Effects on Income Inequality. Ikonomika, 6(1), 97–122. https://doi.org/10.24042/febi.v6i1.9439
Rahim, S. H. A., Rashid, R. A., & Hamed, A. B. (2016). Islamic financial literacy and its determinants among university students: An exploratory factor analysis. International Journal of Economics and Financial Issues, 6(7Special Issue), 32–35.
Saifurrahman, A., & Kassim, S. (2021). Islamic Financial Literacy for Indonesian MSMEs during COVID-19 Pandemic: Issues and Importance. Journal of Islamic Finance, 10(1), 45–60.
Sirat, A. H. (2022). Islamic Financial Management Practices and Business Performance in Small Industrial Companies. ATESTASI?: Jurnal Ilmiah Akuntansi, 5(1), 94–108. https://doi.org/10.33096/atestasi.v5i1.1192
Srisusilawati, P., Fasa, M. I., Nurhayat, S., Anugrahwanto, R. B., Hidayat, A. W., Sulaimawan, D., Fitri, A., Rahmayuni, S., & Zahra, D. N. (2021). The Nexus Between Dynamic Capability and Islamic Financial Literacy Towards Innovation of Small Medium Enterprises (SMEs) in Indonesia. Proceedings of the 1st Paris Van Java International Seminar on Health, Economics, Social Science and Humanities (PVJ-ISHESSH 2020), 535(2), 36–39. https://doi.org/10.2991/assehr.k.210304.008
Suwarsi, A. A., Sharfina, A. G., & Anggraeni, A. (2022). Portrait of MSMEs‘ Islamic Financial Literacy and The Impact on Business Development. Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies, 18(1). https://doi.org/10.18196/afkaruna.v18i1.12991
Trianto, B., Barus, E. E., & Sabiu, T. T. (2021). Relationship Between Islamic Financial Literacy, Islamic Financial Inclusion and Business Performance?: Evidence from Culinary Cluster of Creative Economy. Ikonomika, 6(1), 19–38. https://doi.org/10.24042/febi.v6i1.7946
Trianto, B., Rahmayati, R., Yuliaty, T., & Sabiu, T. T. (2021). Determinant factor of Islamic financial inclusiveness at MSMEs: Evidence from Pekanbaru, Indonesia. Jurnal Ekonomi & Keuangan Islam, 7(2), 105–122. https://doi.org/10.20885/jeki.vol7.iss2.art1
Waldan, R. (2022). Resilience of Micro, Small and Medium Enterprises (MSMEs) Through Islamic Social Finance (ISF) after the Covid 19 Pandemic. Journal of Multidisciplinary Islamic Studies, 2(1), 20–28.
Widiyati, S., Wijayanto, E., & Prihartiningsih, P. (2018). Financial Literacy Model at Micro Small Medium Entreprise (MSMEs). MIMBAR?: Jurnal Sosial Dan Pembangunan, 34(2), 255–264. https://doi.org/10.29313/mimbar.v34i2.2914
Abdullah, R., & Abdul Razak, A. L. (2015). Exploratory Research into Islamic Financial Literacy in Brunei Darussalam. Researchgate.Net, October, 28. https://doi.org/10.13140/RG.2.1.4815.1765
Annisa, A. A. (2021). Islamic Financial Literacy Cycle in the Family. Indonesian Journal of Islamic Economics Research, 3(1), 39–50.
Curvelo, I. C. G., Watanabe, E. A. de M., & Alfinito, S. (2019). Purchase intention of organic food under the influence of attributes, consumer trust and perceived value. Revista de Gestão, 26(3), 198–211.
Esya, L., Kusumastuti, S. Y., Curry, K., Amelia, M., & Kristina, I. (2022). Islamic Financial Literacy For MSMEs During The Pandemic. Jurnal Akal:Abdimas Dan Kearifan Lokal, 3(2), 231–244.
Fatah Yasin, R. F., Mahmud, M. W., & Diniyya, A. A. (2020). Significance of Financial Literacy among Women Entrepreneur on Halal Business. Journal of Halal Industry & Services, 3, 1–9. https://doi.org/10.36877/jhis.a0000076
Habriyanto, Trianto, B., Azman, N. H. N., Busriadi, Muchtar, E. H., & Barus, E. E. (2022). Does The Component of Islamic Financial Literacy Affect on MSMEs Decision in Islamic Banking Financing?: Creative Economy Investigate. International Journal of Islamic Business and Economics (IJIBEC), 6(2), 138–147. https://doi.org/10.28918/ijibec.v6i2.6090
HedisMarlina Yuneline, M. (2022). Implications of Shariah Financial Technology in Increasing Financial Inclusion to Micro, Small, and Medium Enterprises Implikasi Fintech Syariah dalam Peningkatan Inklusi Keuangan pada Usaha Mikro, Kecil, dan Menengah. Islamiyyat, 44(1), 89–99.
Hikmah, R., Djuwita, D., & Widagdo, R. (2019). Effect of Financial Literation and Financing-Effectivity toward the Growth of Small Enterprises: Case Study in Bank Syariah Mandiri, Majalengka. AL-FALAH?: Journal of Islamic Economics, 4(2), 163. https://doi.org/10.29240/alfalah.v4i2.941
Lestari, M. D., Kantun, S., Hartanto, W., Suharso, P., & Widodo, J. (2020). Analysis of the financial literacy level of Micro, Small and Medium Enterprises (MSMEs) in Jember, East Java, Indonesia. IOP Conference Series: Earth and Environmental Science, 485(1). https://doi.org/10.1088/1755-1315/485/1/012128
Maulidya, M., & Putra, R. (2023). The Effect of Perceptions of Profit Sharing, Islamic Financial Literacy, and E-Banking on Customer Interests in Using Bank Syariah Indonesia (BSI) Services Religiosity as …. Jurnal Ekonomi Syariah Indonesia (JESI), XIII(2), 225–244.
Meijer, G. W., Lähteenmäki, L., Stadler, R. H., & Weiss, J. (2021). Issues surrounding consumer trust and acceptance of existing and emerging food processing technologies. Critical Reviews in Food Science and Nutrition, 61(1), 97–115.
Menne, F., Mardjuni, S., Yusuf, M., Ruslan, M., Arifuddin, A., & Iskandar, I. (2023). Sharia Economy, Islamic Financial Performance and Factors That Influence It—Evidence from Indonesia. Economies, 11(4), 111.
Menne, F., Surya, B., Yusuf, M., Suriani, S., Ruslan, M., & Iskandar, I. (2022). Optimizing the financial performance of smes based on sharia economy: Perspective of economic business sustainability and open innovation. Journal of Open Innovation: Technology, Market, and Complexity, 8(1), 18.
Mutiara Savitri, F., Maulana, A. S., Perwita, A. D., & Saptana, S. (2021). The Effect of Sharia Financial Access & Financial Literation to Non-Bankable MSMEs Growth. Velocity: Journal of Sharia Finance and Banking, 1(2), 68–78. https://doi.org/10.28918/velocity.v1i2.4606
Nugraha, D. P., Gufron, I. A., Pringgondani, P., & Ilhamdi, I. (2022). The Effect of Sharia Financial Literature, Government Support and Sharia Fintech on MSME Sustainability. Enrichment: Journal of Management, 12(2), 1365–1372.
Olivia, H., Astuty, W., Sijauta, D., Radhiyah, & Yovi, M. (2023). Factors Influencing MSMEs In Choosing Transactions In Sharia Financial Institutions and ITS Impact on Increasing Income (Case Study of MSMEs Actors in Binjai, North Sumatera). Indonesian Interdisciplinary Journal of Sharia Economics (IIJSE), 6(3), 2737–2756.
Purwanto, P., Fitriyani, Y., & Lidasan, D. M. S. (2021). Financing of The Medium, Small and Micro Enterprises Sector By Sharia Banking: Positive Effects on Economic Growth and Negative Effects on Income Inequality. Ikonomika, 6(1), 97–122. https://doi.org/10.24042/febi.v6i1.9439
Rahim, S. H. A., Rashid, R. A., & Hamed, A. B. (2016). Islamic financial literacy and its determinants among university students: An exploratory factor analysis. International Journal of Economics and Financial Issues, 6(7Special Issue), 32–35.
Saifurrahman, A., & Kassim, S. (2021). Islamic Financial Literacy for Indonesian MSMEs during COVID-19 Pandemic: Issues and Importance. Journal of Islamic Finance, 10(1), 45–60.
Sirat, A. H. (2022). Islamic Financial Management Practices and Business Performance in Small Industrial Companies. ATESTASI?: Jurnal Ilmiah Akuntansi, 5(1), 94–108. https://doi.org/10.33096/atestasi.v5i1.1192
Srisusilawati, P., Fasa, M. I., Nurhayat, S., Anugrahwanto, R. B., Hidayat, A. W., Sulaimawan, D., Fitri, A., Rahmayuni, S., & Zahra, D. N. (2021). The Nexus Between Dynamic Capability and Islamic Financial Literacy Towards Innovation of Small Medium Enterprises (SMEs) in Indonesia. Proceedings of the 1st Paris Van Java International Seminar on Health, Economics, Social Science and Humanities (PVJ-ISHESSH 2020), 535(2), 36–39. https://doi.org/10.2991/assehr.k.210304.008
Suwarsi, A. A., Sharfina, A. G., & Anggraeni, A. (2022). Portrait of MSMEs‘ Islamic Financial Literacy and The Impact on Business Development. Afkaruna: Indonesian Interdisciplinary Journal of Islamic Studies, 18(1). https://doi.org/10.18196/afkaruna.v18i1.12991
Trianto, B., Barus, E. E., & Sabiu, T. T. (2021). Relationship Between Islamic Financial Literacy, Islamic Financial Inclusion and Business Performance?: Evidence from Culinary Cluster of Creative Economy. Ikonomika, 6(1), 19–38. https://doi.org/10.24042/febi.v6i1.7946
Trianto, B., Rahmayati, R., Yuliaty, T., & Sabiu, T. T. (2021). Determinant factor of Islamic financial inclusiveness at MSMEs: Evidence from Pekanbaru, Indonesia. Jurnal Ekonomi & Keuangan Islam, 7(2), 105–122. https://doi.org/10.20885/jeki.vol7.iss2.art1
Waldan, R. (2022). Resilience of Micro, Small and Medium Enterprises (MSMEs) Through Islamic Social Finance (ISF) after the Covid 19 Pandemic. Journal of Multidisciplinary Islamic Studies, 2(1), 20–28.
Widiyati, S., Wijayanto, E., & Prihartiningsih, P. (2018). Financial Literacy Model at Micro Small Medium Entreprise (MSMEs). MIMBAR?: Jurnal Sosial Dan Pembangunan, 34(2), 255–264. https://doi.org/10.29313/mimbar.v34i2.2914
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