Examining Sharia Financial Literacy And Capital Access For MSME Sustainability: A Mixed-Methods Study In East Kalimantan

This study examines the role of e-payment usage in mediating the relationship between Sharia financial literacy and financial behavior on the financial well-being of Micro, Small, and Medium Enterprises (MSMEs) in West Sulawesi, Indonesia. Using a quantitative causal research design, data were collected from 115 MSME owners and managers engaged in trade, culinary, and service sectors through a structured questionnaire employing a five-point Likert scale. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings reveal that Sharia financial literacy and financial behavior have a significant positive effect on e-payment usage, with financial behavior exerting a stronger influence. However, neither Sharia financial literacy nor financial behavior directly affects MSME financial well-being. Conversely, e-payment usage has a strong and significant positive effect on financial well-being and fully mediates the relationship between Sharia financial literacy and financial behavior with financial well-being. These results underscore the strategic role of Sharia-compliant e-payment adoption in enhancing MSME welfare by improving transaction efficiency, expanding market reach, and reducing operational costs. The study contributes to the literature by integrating Sharia financial literacy, financial behavior, and e-payment into a mediation model within the specific context of MSMEs in West Sulawesi. Practical implications are offered for policymakers, financial institutions, and MSME practitioners to strengthen Sharia financial literacy and encourage e-payment adoption as a pathway to sustainable economic growth.

The objective of the study is to know whether creditors terms and Micro, Small and Medium Enterprises (MSMEs) accounting process affect MSMEs debtor’s management and to know the need for novel Information Technology (IT) tools. This study proposes a definite set of survey questionnaires to measure variables such as the influence of suppliers’ credit policies and the accounting process of selected MSMEs. The sample size of this study focuses on various MSMEs owners or accountants in Oman. The questionnaire survey findings are based on 44 MSMEs that responded. The study used Partial Least Squares Structural Equation Modeling (PLS-SEM) to analyze creditors terms, accounting process of MSMEs with its impact on MSMEs debtors’ management. MSMEs' accounting process and suppliers' credit policies do influence MSMEs debtors’ management. Increased working capital risks due to inefficient debtors’ management may lead MSMEs to be resource-efficient in managing their accounting process by using IT tools. The practice of using IT tools by MSMEs can scientifically manage their outstanding debtors which leads to a higher level of hostile working capital management and MSMEs sustainable development. MSMEs play a key role in the development of the national economy, there is a dearth of similar published MSMEs broad studies in Oman that validates the importance of the current research.

Objective: This study examines the determinants of financial inclusion among MSME owners in North Central Nigeria. Research Design & Methods: The study adopted a survey research design; the target population consisted of 11,607 MSME owners across North Central Nigeria. A combination of stratified and simple random sampling techniques was used to select participants. The sample size of 435 was determined using Krejcie and Morgan’s (1970) sample size formula. Data was analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings: The findings revealed that push-pull factors significantly explained variations in financial inclusion. Based on these results, the study concludes that push-pull factors have a positive effect on the financial inclusion of MSME owners in North Central Nigeria. Practical Implications: This study accentuates the imperative for financial regulatory bodies to adopt targeted financial inclusion management strategies tailored to the unique needs of Micro, Small, and Medium Enterprises (MSMEs). By doing so, these institutions can catalyze economic emancipation, particularly in emerging economies such as Nigeria. Recommendations: The study recommends that the government should implement financial literacy programs to raise awareness among MSME owners about the importance of financial knowledge and skills. Additionally, the government should collaborate with banks to provide lower interest rates and more flexible repayment options to ensure that financial support effectively reaches the intended beneficiaries. Contribution & Value Added: This research contributes to the literature by empirically demonstrating the influence of push-pull factors such as necessity-driven entrepreneurship (push) and opportunity-driven entrepreneurship (pull) on MSME performance in Kwara State, Nigeria.

This study investigates the influence of financial technology adoption, owner financial literacy, and risk tolerance on the performance of Micro, Small, and Medium Enterprises (MSMEs) in Indonesia. Amidst the diverse landscape of Indonesian MSMEs, characterized by challenges in accessing formal financial services, the study examines the role of FinTech in overcoming these barriers and fostering business growth. Additionally, it explores the significance of owner financial literacy in facilitating informed decision-making and the strategic importance of risk tolerance in driving business innovation. Through a quantitative research design and Partial Least Squares Structural Equation Modeling (PLS-SEM) analysis, the study offers insights into the nuanced relationships between these factors and MSME performance. The findings provide actionable insights for policymakers, financial institutions, and MSME owners, aiming to promote sustainable MSME development and economic prosperity in Indonesia.

This study investigates the influence of financial technology literacy, financial literacy and competitive pressure on the performance of Micro, Small and Medium Enterprises (MSMEs) in Jakarta. Data were collected from 77 MSME owners and managers through a structured questionnaire distributed with the assistance of the Jakarta MSME Office (Dinas PPKUKM). The responses were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The results show that financial technology literacy and financial literacy have significant positive effects on MSME performance, while competitive pressure also has a positive but relatively smaller effect. These findings emphasise the importance of strengthening financial capabilities and digital readiness among MSMEs. Practically, the study recommends targeted financial literacy training programs, the provision of simple FinTech adoption toolkits and mentoring initiatives to enhance MSMEs' readiness to compete in dynamic markets.

Micro, small, and medium enterprises (MSMEs) significantly underpin Indonesia’s economy, yet sustaining their business performance remains a critical challenge. While extensive literature emphasizes the strategic role of innovation capability in enhancing SMEs’ performance, many studies have concentrated on narrow, industry-specific contexts, limiting their generalizability. Moreover, the mechanisms through which innovation capability translates into tangible performance gains remain insufficiently explored, particularly the mediating role of business model innovation. Addressing this gap, this study explores the relationships among innovation capability, business model innovation, and MSMEs’ performance. Structured questionnaires were disseminated among MSME owners and managers engaged in business model innovation. Data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). Findings reveal that innovation capability significantly improves MSMEs’ performance, with business model innovation acting as a crucial pathway in this relationship. Theoretically, the current study enriches the dynamic capabilities framework by clarifying how business model innovation serves as a mediating mechanism in the innovation–performance relationship. Practically, the insights offer MSME owners and managers actionable strategies to leverage innovation capability and business model innovation to sustain growth in dynamic markets. In light of prior studies, this study is among the first empirical studies exploring the mediating role of business model innovation in the link between innovation capability and performance within MSMEs context. This contribution also resonates with Sustainable Development Goals (SDGs), which emphasizes fostering inclusive and sustainable SME growth in emerging economies.

This study aims to analyze the influence of financial inclusion, financial literacy, venture capital, and social media utilization on the sustainability of Micro, Small, and Medium Enterprises (MSMEs) in Jepara Regency. The approach used in this study is quantitative with a survey method, where data is collected through distributing questionnaires to MSME actors. The population in this study is all MSME actors in Jepara Regency, totaling 81,909 business units. The sampling technique used random sampling, and the number of samples is determined using the Slovin formula with a 10% error rate, resulting in 100 respondents. Data analysis was carried out using the Partial Least Squares Structural Equation Modeling (PLS-SEM) method. The results show that all independent variables, namely financial inclusion, financial literacy, venture capital, and social media utilization, have a positive and significant effect on the sustainability of MSMEs. This finding supports the Resource-Based View (RBV) theory, which states that optimal management of internal resources can increase competitiveness and business continuity. This research offers practical implications for MSMEs and local governments to strengthen access to financial services, improve financial literacy capacity, and utilize digital technology to support business sustainability. This study has limitations in coverage and sample size, so it is recommended that future research expand the population and consider a mixed-method approach to obtain more comprehensive results.

This study examines the effect of Entrepreneurial Orientation and Absorptive Capability on the collaborative capability of micro, small, and medium enterprises (MSMEs), with the role of government as a moderating variable. Collaboration among MSMEs is increasingly recognized as a strategic mechanism for enhancing competitiveness, innovation, and sustainability. However, empirical evidence regarding the influence of internal strategic capabilities and the conditional role of government intervention in shaping inter-firm collaboration remains limited, particularly in the context of developing economies. This research adopts a quantitative approach using primary data collected from MSME owners and managers. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) to examine both direct and moderating relationships among the variables. Entrepreneurial orientation is measured through dimensions of innovativeness, proactiveness, and risk-taking, while absorptive capability reflects the ability to acquire, assimilate, and apply external knowledge. The role of government is assessed through policy support, facilitation, and capacity-building programs. The results indicate that entrepreneurial orientation has a positive and significant effect on MSMEs’ collaborative capability, suggesting that entrepreneurial behavior encourages firms to engage in cooperative relationships. Absorptive capability also shows a significant positive influence on collaborative capability, highlighting the importance of internal learning and knowledge utilization in successful collaboration. However, the findings reveal that the role of government does not significantly moderate the relationships between entrepreneurial orientation, absorptive capability, and collaborative capability. This study contributes to the literature by emphasizing the dominance of internal strategic capabilities over external intervention in fostering inter-MSME collaboration. The findings provide practical insights for MSME managers to strengthen entrepreneurial orientation and absorptive capability, while suggesting that government initiatives should focus on creating an enabling environment rather than acting as a direct reinforcing mechanism.

This community service activity aims to provide education and assistance to Micro, Small and Medium Enterprises (MSMEs) by providing an understanding of the basic concepts of taxation, tax rights, and obligations for MSMEs. The method of implementing community service activities is carried out in several stages. The first stage is the planning stage through observation and preliminary interviews on the subject of community service. The second stage is the implementation of activities in the form of training, which is carried out through the presentation of materials, calculation practice, reporting, and tax payment procedures, as well as discussions. The third stage is monitoring, which aims to address the problems faced by MSMEs in fulfilling their tax obligations independently. MSME owners need to be equipped with adequate tax knowledge to increase their awareness of MSME tax compliance. Moreover, limited knowledge is one of the obstacles to the development of MSMEs. Through continuous participation in tax socialization activities such as tax advice and seminars, MSME taxpayers using e-commerce will increase their awareness and compliance. Based on the activities carried out, MSME owners (actors) in Pare Kediri as MSME business operations managers gain a significant understanding of MSME tax rights and obligations. The community service activities still need follow-up activities to ensure that the MSME actors have correctly calculated their tax obligations and have fulfilled their tax obligations by the applicable regulations. Therefore, the community service activities can be continued in the following year's activities.

This study aims to analyse the factors influencing the implementation of Financial Accounting Standards for Micro, Small, and Medium Enterprises (MSMEs) in Semarang City. Specifically, it examines the effects of accounting understanding, information technology utilisation, and MSME owners’ perceptions on SAK EMKM implementation, with SAK EMKM socialisation as a moderating variable. The research employs a quantitative approach using primary data collected through questionnaires distributed to 109 MSME actors selected through purposive sampling. Data were analysed using Partial Least Squares–Structural Equation Modelling (PLS-SEM) to evaluate relationships among variables. The results indicate that accounting understanding and MSME owners’ perceptions have a positive and significant effect on the implementation of SAK EMKM. Meanwhile, information technology utilisation shows a significant but suboptimal impact, as technology is still primarily used for operational purposes rather than for financial reporting. In addition, SAK EMKM socialisation does not significantly moderate the relationships between the independent variables and SAK EMKM implementation. The originality of this study lies in the inclusion of SAK EMKM socialisation as a moderating variable and the focus on MSMEs in Semarang City as the research context. This study contributes to the development of accounting practices for MSMEs by emphasising the importance of internal capacity building and more practical-oriented socialisation programs to improve the quality of financial reporting.

IntroductionThe rapid global growth of the halal industry has highlighted the increasing demand for ethical, sharia-compliant products and services. In Indonesia, particularly Medan City, halal-certified micro, small, and medium enterprises (MSMEs) have emerged as key contributors to the local economy. Despite holding halal certifications, many of these enterprises struggle to optimize their financial performance, indicating that certification alone is insufficient for success. This study investigates the role of intangible assets—intellectual capital and business sustainability —in enhancing the financial outcomes of halal MSMEs.ObjectivesThis research examines the influence of intellectual capital, comprising human capital, structural capital, relational capital, and spiritual capital, along with business sustainability, on the financial performance of halal MSMEs in Medan City. It seeks to determine the components that significantly impact performance and provide practical insights for improving business competitiveness in the halal sector.MethodThis study adopted a Sequential Explanatory design using a mixed-methods approach. Quantitative data were collected through 219 structured questionnaires distributed to halal-certified food and beverage MSMEs in Medan, whereas qualitative data were obtained from 51 in-depth interviews with MSME owners and employees. The data were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM) and thematic coding with NVivo 12 Plus software.ResultsThe findings show that human capital, structural capital, relational capital, and business sustainability have significant and positive influences on the financial performance of halal MSMEs. However, spiritual capital did not have a statistically significant effect. The model explains 51.2% of the variance in financial performance. Qualitative insights revealed that, while spiritual capital may not directly impact financial performance, it strengthens ethical values and trust, indirectly supporting relational capital.ImplicationsThe results underscore the importance of investing in human resources, optimizing organizational systems, building strong external relationships, and integrating sustainable business practices. These strategies can improve financial performance, resilience, and long-term viability in a competitive and ethically conscious market environment.Originality/NoveltyThis study makes a novel contribution by expanding the Intellectual Capital framework to include Spiritual Capital and Business Sustainability in the context of halal MSMEs. This is one of the first empirical studies to examine this integration using a mixed-methods approach, providing both theoretical enrichment and practical guidance for MSME development in the halal economy.

This research is motivated by the important role and features of Micro, Small and Medium Enterprises (MSMEs) in surviving the economic crisis and the high contribution to Gross Domestic Product (GDP) as well as when compared to large businesses. Even though it has a big role, MSMEs still have some problems, one of which is limitations on financial literacy. Limited literacy is a challenge in itself, considering that financial literacy can increase the ability to manage finances and access available financial products. In addition, this study also includes the used of digital finance variables because the 4.0 revolution has entered into everything that is digital-based. In addition, using these variables is also due to the emergence of optimism about the adopted telephone and internet. The used of digital finance in this study focuses more on payments produced by financial institutions and financial technology companies.The effects of these two variables on financial inclusion will then be examined considering their role in reducing the limited access to available financial services and thus encouraging economic growth. The city of Bandung is used as a research area. Bandung City was choosen because the large number of MSMEs and Bandung City MSMEs have their own characteristics. Based on the Dinas Koperasi dan UMKM Kota Bandung (2018), there are 5.242 micro businesses in Bandung City, 23 medium scale businesses, and 394 small-scale businesses so that the total number is 5.841 MSMEs. The research method used is explanative to explain the relationship between variables through purposive sampling so that 56 respondents were obtained. The purposive sampling technique using the following considerations: categorized micro, small and medium enterprises, business activities in Bandung city, and willing to provide the necessary information. In variable measurement, financial literacy is measured by knowledge related to finance and financial services, actions in making financial decisions, the ability to manage finances, tell financial concepts, and attitude in responding to financial related matters based on Bongomin, Munene, Ntayi, and Malinga (2017), Bongomin et al. (2016), Nkundabanyanga, Kasozi, Nalukenge, and Tauringana (2014), Kartawinata and Mubaraq (2018), and Sina (2017). Measurement the used of digital financial variable adapted based on Azam (2015), Zhou, Lu, and Wang (2010), and Qian, (2019) which consisted of perceptions of ease, benefits received, perceptions of used transfer activities, payments, and account management. Likewise financial inclusion, the measurement of which was adapted from Bongomin et al. (2017) and Bongomin et al. (2016) which consists of the ability to access financial services, using financial services, the quality of financial services, and the benefits obtained when using financial services.The data in this study are primary data with a questionnaire for further analysis using Partial Least Square (PLS). The Likert scale used in this study consists of 4 scales. The answer options strongly disagree are given value 1, disagree is given value 2, agree is given value 3, and strongly agree is given value 4 (Hermawan & Yusran, 2017; Martono, 2016). These four scales to reduce a neutral choice answers that do not show partiality towards positive or negative which results in a tendency not argue. PLS is used as a causality testing analysis tool due to the similarity of objectives with the research conducted and its used which can manage small amounts of samples. The minimum sample size in PLS is 10 samples on each line jalur (Abdillah & Hartono, 2015). In testing the hypothesis, a confidence level of 90 percent is used. Validity testing uses loading scores, AVE values, comparing indicator’s loading and cross loading, and comparison AVE roots with correlation. In this study also use reliability testing with composite reliability and KR-21 considering that the measurements carried out in the study were one measurement.The results show both variables have a positive influence and a very strong level of significance on financial inclusion. This result also supported by very strong evidence that can be seen through the p-value for each relationship. The results of the research prove that barriers to accessing these services can be minimized through increasing financial literacy so that can increase financial inclusion and be more developed. Therefore, a common problem experienced by MSME actors, namely low financial literacy, is a serious problem that can be overcome with training or coaching as consideration for solutions considering that financial literacy can open financial access to be more developed. Touching MSMEs with the used of digital finance will automatically open their ability to access available payment financial services and increasing financial inclusion.

This study aims to analyze the influence of digital transformation and financial literacy on the performance of Micro, Small, and Medium Enterprises (MSMEs) with disabilities in DKI Jakarta, with digital financial inclusion as a mediating variable. Primary data were collected from 30 respondents who are MSME actors with disabilities using questionnaires and analyzed with Structural Equation Modeling – Partial Least Squares (SEM-PLS). The outer model test results confirmed the validity and reliability of the instruments. However, key findings from the inner model test indicate that digital transformation significantly and negatively affects both digital financial inclusion and the performance of MSMEs with disabilities. Meanwhile, financial literacy does not significantly influence either digital financial inclusion or the performance of MSMEs with disabilities. Digital financial inclusion was not proven to mediate the relationship between digital transformation and financial literacy on the performance of MSMEs with disabilities. The implications of this study indicate that the current digitalization efforts and financial literacy levels among MSMEs with disabilities in DKI Jakarta are not yet optimal or even pose challenges, thus failing to effectively enhance performance. This study emphasizes the urgency of more inclusive and adaptive assistance programs to ensure positive digital transformation implementation and optimized utilization of digital financial services for MSMEs with disabilities.

This study aims to describe the empowerment strategy of Micro, Small, and Medium Enterprises (MSMEs) implemented by the Kebab Kenzatha MSME operating in Bukittinggi City. The background of this study is based on the important role of MSMEs in driving the local economy, particularly in creating jobs, increasing community income, and strengthening the domestic economic structure. MSME empowerment is a vital strategy in ensuring the sustainability and competitiveness of small and medium enterprises amidst increasingly competitive market competition. There are various dimensions in MSME empowerment, such as strengthening the capacity of individual business actors, increasing access to markets, access to capital, utilization of technology, and adequate policy or institutional support. This study uses a descriptive qualitative approach. This method was chosen because it is considered most appropriate to comprehensively and objectively describe the various empowerment strategies that have been or are being implemented by MSME actors, particularly Kebab Kenzatha. Through observation and in-depth interviews with MSME owners, researchers obtained information about business activities and marketing strategies implemented. Based on the results of observations, it is known that the Kebab Kenzatha MSME is still managed independently by its owner without the involvement of employees or additional labor. This indicates that its organizational structure is still very simple. Meanwhile, in terms of marketing strategy, this MSME utilizes its closest social networks, such as friends of the business owner and students at Campus V of Padang State University (UNP), as its primary target market. This approach reflects a marketing strategy based on social relationships and word-of-mouth promotion, commonly employed by MSMEs with limited resources. Therefore, the empowerment of the Kebab Kenzatha MSME is still in its early stages and requires further support for optimal long-term development.

Small and Medium Enterprises (SMEs) are widely recognized as key drivers of economic growth, employment, and innovation. However, despite their critical role, many SMEs struggle to achieve sustainable growth and performance, often due to limited access to resources, lack of financial knowledge, and inadequate entrepreneurial strategies. This study aims to investigate the impact of financial literacy, entrepreneurial orientation, and access to finance on the performance of SMEs in Kaduna State, with a specific focus on how access to finance moderates the relationship between financial literacy and SME performance. The research addresses the gap in existing literature regarding the combined effects of these factors on business outcomes in the SME sector. Data was collected from 453 SME owners using a structured questionnaire, and the responses (389 valid) were analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The findings show that financial literacy and entrepreneurial orientation have significant positive effects on SME performance, with entrepreneurial orientation emerging as the strongest predictor. Access to finance, while important, did not significantly moderate the relationship between financial literacy and performance. Based on these results, the study suggests that enhancing financial literacy and fostering an entrepreneurial mindset should be central to policies aimed at improving SME performance. Additionally, financial institutions should focus on providing tailored financial products that cater to the specific needs of SMEs. The study concludes by recommending further research to explore additional factors such as digital skills, market conditions, and the role of government policies in shaping SME success.