Digital Islamic Financial Literacy and Inclusion on Profitability of Micro, Small and Medium Enterprises

Abstract

Digital Islamic financial literacy and inclusion are the main factors in playing a role in increasing the profitability of Microfinance Microfinance Enterprises (MSMEs). This study uses a quantitative approach, data collection techniques using questionnaires, and the data source of this research is the owners of MSMEs in Bantul. Based on the results of this study, it is stated that digital Islamic financial literacy has a positive and significant effect on the profitability of MSMEs in Bantul, while digital Islamic financial inclusion has no significant effect on the profitability of MSMEs in Bantul. Taken together, digital Islamic financial literacy and inclusion simultaneously affect the profitability of MSMEs in Bantul. Limitations in this study are the limitations of two variables that affect profitability, of course, many variables affect profitability, and the sample in this study is only limited to Bantul.

Quantitative Assessment of the Relationship between Land Management Practices, Financial Literacy, Supply Chain Integration, and Profitability in Agribusiness Enterprises

“…The study found that financial information literacy significantly impacts agribusiness performance sustainability among entrepreneurs. In addition, the proposed link between financial information literacy and strategic decision-making effectiveness among agribusiness entrepreneurs was confirmed (Pranatasari et al, 2022). It is concluded that financial information literacy is crucial for agribusiness entrepreneurs to make strategic decisions and improve their performance sustainability.…”

“…Farmers, managers, and industry experts with higher levels of financial literacy demonstrate better capabilities in managing cash flows, allocating resources, and assessing investment opportunities, thereby optimizing financial performance and minimizing risks (Obi-Anike et al, 2023;Rahmansyah et al, 2023). Moreover, financial literacy empowers agribusinesses to access financial markets, secure funding, and negotiate favorable terms, enhancing their financial resilience and flexibility in the face of market uncertainties and economic challenges (Pranatasari et al, 2022).…”

The Role of Sharia Financial Innovation and Literacy in Improving the Performance of MSME Actors

“…Islamic financial literacy has a significant positive impact on the financial management of MSMEs (Pranatasari et al, 2021). Some positive impacts include more effective financial management, diversification of financing sources, increased trust and reputation, and access to Islamic financial markets (Suwarsi et al, 2022).…”

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

“…These principles include the prohibition of riba (usury), fairness in transactions, and a prohibition against investment in businesses that are incompatible with Islamic values such as alcohol and gambling. In the context of a sharia-based economy, MSMEs that understand sharia financial literacy will be better able to follow these principles in their operations, which in turn can increase customer trust and access to wider markets [2].…”