Analyzing the readiness of MSMEs to adopt Sharia economic practices in the digital era

Abstract

Micro, Small, and Medium Enterprises (MSMEs) hold a strategic position in the national economy; however, digital transformation based on Sharia economics still faces numerous challenges. This study aims to analyze the readiness of MSMEs to adopt Sharia economic practices in the digital era by highlighting aspects of Sharia financial literacy, access to technology, and regulatory support. Employing a qualitative method with a case study approach, this research collected data through in-depth interviews, observation, documentation, and literature review. The findings reveal that the main obstacles faced by MSMEs are limited understanding of Sharia economic principles and restricted access to Sharia-compliant financial services. Nevertheless, the optimization of Sharia fintech, Sharia crowdfunding, and the use of halal marketplaces are seen as potential solutions to enhance financial inclusion and competitiveness among MSMEs. With synergy among the government, Sharia financial institutions, and MSME actors, a Sharia-based digital transformation can foster more sustainable and inclusive business growth.

Keywords: MSMEs; Sharia Economics; Digitalization; Sharia Fintech; Financial Literacy