Jurnal Ekonomi & Keuangan Islam
Volume 7 No. 2, July 2021

Determinant factor of Islamic financial inclusiveness at MSMEs: Evidence from Pekanbaru, Indonesia

Budi Trianto (STEI Iqra Annisa, Pekanbaru, Indonesia)
Rahmayati Rahmayati (Faculty of Islamic Religion, Muhammadiyah University of Nort Sumatera, Indonesia)
Tetty Yuliaty (3Faculty of Economic and Business, North Sumatera University, Indonesia)
Tasiu Tijjani Sabiu (Yusuf Maitama Sule University, Kano, Nigeria)



Article Info

Publish Date
05 Aug 2021

Abstract

Purpose – This study aims to analyze the factors that influence the inclusiveness of Islamic finance in MSMEs and its impact on their business performance.Methodology – This research uses the quantitative approach through SEM analysis. Data were collected directly from respondents using an online survey questionnaire. Respondents in this study were MSMEs who had interacted with the Islamic Banking with the total sample size of 98 MSMEs owners.Findings – The results of this study show that the socio-cultural and marketing communication variables have a positive and significant impact on Islamic financial inclusion. Meanwhile, Islamic financial literacy has a positive but insignificant impact on Islamic Financial Inclusion. Although financial literacy does not have a significant impact on Islamic financial inclusion, it has a positive and significant impact on the performance of MSMEs. Another result shows that Islamic financial inclusion has a positive and significant impact on the performance of MSMEs in PekanbaruOriginality – Research related to the Islamic Financial Inclusion in the MSMEs in Pekanbaru, Indonesia is very limited. This study will contribute to the existing literature in the area of Islamic Financial Inclusion and the development of MSMEs.

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Journal Info

Abbrev

JEKI

Publisher

Subject

Economics, Econometrics & Finance

Description

AIMS Jurnal Ekonomi dan Keuangan Islam (JEKI) covers in detail a large number of topics related to Islamic Economics and Islamic Finance, comprising the latest empirical studies, country-specific studies, policy evaluations on Islamic economics and comparative international Islamic finance. This ...