The study matters because MSMEs form the backbone of Indonesia’s economy, yet many Sharia-compliant enterprises struggle to survive long term. Limited understanding of Islamic finance, difficulty accessing Sharia-compliant capital, and low digital readiness often combine to weaken competitiveness. By showing how these three factors reinforce each other, the research offers a clear roadmap for strengthening Sharia MSMEs in fast-changing regions.
Why Sharia MSMEs Matter in a Changing Economy
East Kalimantan is undergoing a historic transition. The development of Nusantara, Indonesia’s future capital, is driving infrastructure expansion, investment inflows, and population growth. For Sharia MSMEs—many of which are rooted in traditional trade, services, and creative industries—this transformation brings both opportunity and risk.
Nationally, Indonesia’s Islamic finance sector continues to grow, but its benefits are uneven. Sharia banking assets have expanded rapidly, yet a relatively small share of financing reaches MSMEs. At the same time, digitalization is reshaping how businesses access markets and financial services. Enterprises that lack digital skills or understanding of Islamic financial products risk being left behind.
Against this backdrop, the study highlights a pressing policy question: how can Sharia MSMEs remain sustainable while aligning with ethical principles, modern finance, and digital technology?
How the Research Was Conducted
The research used a mixed-methods approach that combined quantitative and qualitative analysis. Data were collected from 300 Sharia-compliant MSMEs across East Kalimantan, covering sectors such as trade, services, and creative industries. Business owners and managers responded to structured questionnaires measuring four key areas:
· Sharia financial literacy
· Access to Islamic finance
· Digital adaptation
· MSME sustainability
To deepen the findings, the researcher also conducted in-depth interviews with MSME owners, Islamic banking practitioners, and local regulators. This combination allowed the study to capture both statistical relationships and real-world experiences.
Key Findings at a Glance
The results show that sustainability is not driven by a single factor, but by the interaction of knowledge, capital, and technology.
Main findings include:
· Access to Islamic finance has the strongest direct effect on MSME sustainability. Businesses with easier access to Sharia-compliant funding are more stable and better able to grow.
· Digital adaptation significantly improves sustainability. MSMEs that use digital tools such as e-commerce platforms, digital payments, and online marketing perform better than those relying solely on traditional methods.
· Sharia financial literacy directly supports sustainability and also boosts digital adaptation. Owners who understand Islamic financial principles are more likely to adopt relevant digital solutions.
· Digital adaptation acts as a bridge. It mediates the relationship between financial literacy and sustainability, meaning knowledge becomes more effective when supported by technology.
Together, these factors explain 68 percent of the variation in MSME sustainability, a strong result in social and economic research.
What This Means in Practice
The findings suggest that fragmented interventions are not enough. Training MSME owners in Islamic finance without improving access to capital or digital infrastructure delivers limited results. Similarly, promoting digital tools without strengthening financial literacy or financing access fails to create lasting impact.
For policymakers, the research points to the need for integrated support strategies. Financial education programs should be linked to practical access to Sharia financing and hands-on digital training. Islamic financial institutions are encouraged to simplify procedures, tailor products to MSME needs, and expand digital services that remain accessible to small businesses.
For MSME owners, the message is clear. Sustainability in today’s economy requires more than ethical compliance. It also demands the ability to navigate Islamic financial products and operate confidently in digital markets.
As Priyandono notes, Sharia financial literacy is not just technical knowledge but a foundation for ethical and strategic decision-making. When combined with technology and inclusive financing, it becomes a powerful driver of long-term resilience.
Real-World Impact for East Kalimantan and Beyond
The study is especially relevant for regions experiencing rapid development. East Kalimantan’s transition into a national administrative center risks widening gaps between modern sectors and traditional businesses. Sharia MSMEs that successfully integrate financial knowledge, digital capability, and capital access are better positioned to join new value chains and benefit from regional growth.
Beyond East Kalimantan, the findings offer lessons for other emerging Islamic economies. Sustainable MSME development depends on ecosystems, not isolated programs. Aligning ethics, finance, and technology supports inclusive growth while staying true to Islamic economic principles.
Author Profile
Lukman Priyandono, S.E., M.M. is a lecturer and researcher at Universitas 17 Agustus 1945 Samarinda, Indonesia. His expertise includes Islamic finance, MSME development, digital marketing, and business sustainability. His research focuses on how ethical finance and technology can strengthen competitiveness in regional and emerging economies.
Source
Article Title: Sharia MSME Strategy Through the Synergy of Literacy, Capital Access, and Technology
Journal: Formosa Journal of Science and Technology
Publication Year: 2026
DOI: https://doi.org/10.55927/fjst.v5i1.389
Official URL: https://traformosapublisher.org/index.php/fjst
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