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

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

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 Pekanbaru

Originality – 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.

Keywords : Islamic financial literacy; marketing communication; socio-cultural; Islamic financial inclusion; business performance

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Jurnal Ekonomi dan Keuangan Islam | Journal of Islamic Economics and Finance (JEKI)

P-ISSN 2088-9968; E-ISSN 2614-6908

Published by:
Pusat Pengkajian dan Pengembangan Ekonomi Islam - P3EI
(Center for Islamic Economics Studies and Development)
Faculty of Business & Economics, Universitas Islam Indonesia, Yogyakarta, Indonesia

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JEKI by is under licensed by Creative Commons Attribution 4.0 International License.