Potrait of MSMEs Islamic Finance Literacy and its Influence on Business Development
Aqidah Asri Suwarsi, Aninta Gina Sharfina, Anisatun Anggraeni
Universitas Muhammadiyah Yogyakarta
Abstract
MSMEs are part of the supporting aspects of the countrys economy. Over the past five years, the level of absorption of labor in the MSME sector grew from 96.99 percent to 97.22 percent. However, the competitiveness of MSMEs in Indonesia towards the global economy still tends to be low when compared to other ASEAN countries. This is caused by low levels of education and expertise, difficulties in obtaining licensing for MSMEs, lack of access to capital, and lack of infrastructure support. One of the aspects that should not go unnoticed in the field of education and expertise in financial literacy levels of society whose activities cannot be separated from financial institutions. The purpose of this research is not just to analyze, to classify the level of MSME Islamic financial literacy. However, the research also this it aims to determine the impact on the development of Islamic financial literacy. The approach of this research is quantitative descriptive with 1392 samples, obtained by using cluster random sampling technique in the DIY province. The results of this study are the level of DIY MSME Islamic financial literacy in the Less Literate category. The effect on the business developing had a positive and significant influence amounted to 36.1%. With this finding, it is expected to be an input for regulators in the framework of planning and implementing policies related to Islamic financial literacy. Keyword: Islamic Financial Literacy, micro, small and medium enterprises JEL Classification: D14, G2
Keywords: Islamic financial Literacy , MSMEs
Topic: International Conference of Islamic Economic and Financial Inclusion