Journal of Integrative Sustainability and Ethics

Beyond Access to Finance: Financial Literacy and Managerial Effectiveness among MSMEs in Bantul Regency

2025-11-13T03:20:27+00:00

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Indonesia’s economic development, particularly in Bantul Regency, Yogyakarta, which hosts one of the highest concentrations of MSMEs in the region. Despite their significant contribution, many MSMEs continue to face limited access to formal financial services, often attributed to inadequate financial literacy and weak managerial practices. This study aims to assess the level of financial literacy among MSME owners in Bantul Regency, examine their financial management behavior, and identify factors influencing financial effectiveness. Employing a mixed-method approach, primary data were collected through structured questionnaires and semi-structured interviews with 31 MSME owners selected using purposive sampling. Financial literacy was measured across three dimensions: financial management literacy, saving literacy, and debt literacy. The findings reveal that MSME financial literacy remains fragmented and uneven across dimensions. While respondents demonstrate relatively adequate understanding of saving and debt-related concepts, financial management practices—particularly bookkeeping and the separation of personal and business finances—are notably weak. Many MSME owners perceive formal financial recording as unnecessary or overly complex due to small business scale and fluctuating income. These results indicate that financial knowledge alone does not automatically translate into effective financial behavior without practical skills, behavioral discipline, and access to supportive financial systems. This study contributes to the literature by providing localized empirical evidence on MSME financial literacy patterns in a developing economy context and underscores the importance of behavior-oriented financial education and institutional support to enhance MSME sustainability and financial inclusion.

Integration of Fatwa in the Governance of Islamic Crowdfunding and Shariah Compliance Disclosure

2025-06-16T04:30:02+00:00

The rapid growth of Islamic crowdfunding in Indonesia reflects increasing demand for Sharia-compliant financial solutions. However, challenges persist in ensuring compliance with fatwas, governance standards, and transparency in Sharia compliance disclosure, which are critical for investor trust and platform sustainability. This study conducts a Systematic Literature Review following PRISMA guidelines to analyze 15 selected articles from reputable sources (2019–2024). The research explores the integration of fatwas, governance challenges, and disclosure practices in Islamic crowdfunding. Findings reveal that fatwas serve as adaptive frameworks for validating contracts such as mudharabah and musyarakah and operational mechanisms, yet inconsistencies in interpretations among Sharia authorities create regulatory ambiguities. Governance challenges include weak oversight by Sharia Supervisory Boards, misalignment between regulations, and insufficient human resources skilled in both Sharia and fintech. Meanwhile, disclosure practices vary widely, with many platforms failing to provide comprehensive disclosures, undermining investor confidence. However, effective disclosure enhances trust and platform sustainability by aligning operations with Sharia principles. The study highlights the need for harmonized fatwa standards, strengthened governance through technology such as AI for real-time compliance monitoring, and standardized disclosure formats. Innovations like blockchain-based audit trails and predictive analytics could transform disclosure into a proactive tool. By addressing these gaps, Islamic crowdfunding can evolve as a robust, ethical alternative for financing MSMEs, contributing to Indonesia’s Islamic economy.

Evaluation of Sustainable MSME Empowerment Through the BRILiaN Cart Program: A Maqāṣid al-Sharī‘ah Approach

2025-11-13T03:03:33+00:00

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in Indonesia’s economic development through employment creation and poverty alleviation; however, their sustainability is frequently constrained by limited access to capital and inadequate digital capabilities. In this context, productive zakat has emerged as an alternative Islamic financial inclusion mechanism aimed at fostering inclusive and value-oriented economic empowerment. This study evaluates the sustainability of MSME empowerment through the BRILiaN Cart program implemented by YBM BRILiaN SBO Malang, which is funded through zakat distribution. While existing studies have widely discussed MSME empowerment and zakat-based economic programs, empirical evaluations that employ a comprehensive maqāṣid sharī‘a framework in real operational settings remain scarce. This study offers novelty by systematically assessing a zakat-funded MSME empowerment program using all five dimensions of maqāṣid sharī‘a based on field-based empirical evidence. Using a qualitative case study approach, data were collected through in-depth interviews, observations, and documentation involving ten program beneficiaries in 2024. The data were analyzed using thematic analysis to identify recurring patterns of empowerment outcomes. The findings indicate that the BRILiaN Cart program contributes positively to beneficiaries’ economic resilience, spiritual awareness, and social welfare, although the degree of impact varies due to differences in innovation capacity and digital literacy among mustaḥik. From a maqāṣid sharī‘a perspective, the program reflects an integrated realization of hifz al-din, hifz al-nafs, hifz al-‘aql, hifz al-nasl, and hifz al-māl, despite the absence of structured business mentoring. Beyond the local context, this study provides broader implications by demonstrating how maqāṣid-based zakat empowerment can serve as a normative and operational framework for sustainable and inclusive microenterprise development in diverse socio-economic settings