Gold Door For Increasing MSMEs Income: The Role Of Sharia Financial Literacy

Sukma Irdiana (), Ainun Jariah (), Ninik Lukiana (), Kusnanto Darmawan (), Kurniawan Yunus Ariyono () and Mohammad Noor Khairullah ()
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Sukma Irdiana: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program
Ainun Jariah: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program
Ninik Lukiana: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program
Kusnanto Darmawan: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program
Kurniawan Yunus Ariyono: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program
Mohammad Noor Khairullah: Institut Teknologi Dan Bisnis, Widya Gama Lumajang, Management Study Program

A chapter in Proceedings of the Conference on SDGs Transformation Through the Creative Economy: Encouraging Innovation and Sustainability (TCEEIS 2023), 2023, pp 138-141 from Springer

Abstract: Abstract The low performance of MSMEs in Indonesia is often attributed to their limited access to capital, which, in turn, stems from a lack of financial knowledge and understanding concerning MSMEs and their dealings with financial institutions. Despite Indonesia’s predominantly Muslim population, Islamic finance, which operates in accordance with Islamic law, has struggled to gain a significant market share in the country. This research primarily aims to gauge the level of Sharia financial literacy among MSMEs, with a particular focus on street vendors in the vicinity of the Anas Machfud Grand Mosque in Lumajang. Additionally, the study endeavors to identify the factors influencing Sharia financial literacy and evaluate their impact on the growth of local MSMEs. The research methodology involves both descriptive and explanatory surveys conducted among 31 MSMES participants. Descriptive analysis is utilized to scrutinize the gathered data, while a simple regression test is employed to discern relationships among the variables studied. The research findings underscore the positive correlation between enhanced knowledge of Sharia financial literacy and increased income for MSMEs situated near the Anas Machfud Lumajang Grand Mosque. These results affirm the pivotal role of financial literacy in propelling the development of MSMEs, particularly in this specific area.

Keywords: —Sharia Financial Literacy; Increased Income; MSMEs (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:spr:advbcp:978-94-6463-346-7_26

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DOI: 10.2991/978-94-6463-346-7_26

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