Analysis of the Influence of Sharia Financial Literacy on the Sustainability of Micro Enterprises in Yogyakarta City
Keywords:
financial literacy, Islamic finance, micro-enterprises, sustainabilityAbstract
This study analyzes the influence of Islamic financial literacy on the sustainability of micro-enterprises in Yogyakarta City. The research is motivated by the increasing challenges faced by micro-entrepreneurs in maintaining business continuity, particularly related to financial management skills in line with sharia principles. The objective is to examine whether a higher level of sharia financial literacy contributes significantly to strengthening micro-enterprise sustainability. The study employed a quantitative approach with a survey method, involving micro-business actors across various sectors in Yogyakarta City. Data were collected using structured questionnaires and analyzed using multiple regression techniques to test the relationship between variables. The findings indicate that Islamic financial literacy has a positive and significant effect on business sustainability. Entrepreneurs with better understanding of sharia-based financial planning, saving, investment, and debt management demonstrate greater resilience in facing financial shocks and are more consistent in business growth. The results also reveal that financial literacy serves as a mediating factor in improving decision-making, access to sharia financing, and long-term business performance. This study concludes that enhancing Islamic financial literacy is crucial for empowering micro-enterprises and supporting inclusive and sustainable economic development.
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