THE INFLUENCE OF SHARIA FINANCIAL LITERACY AND SHARIA FINANCIAL INCLUSION ON THE PERFORMANCE OF UMKM IN MOJOGEDANG DISTRICT

Abstract

MSMEs are very important in supporting economic stability, especially in Mojogedang District. However, inadequate financial planning, difficulty in obtaining capital from financial institutions, and lack of understanding of business finance are challenges that often hinder the performance of MSMEs. Improving knowledge of Islamic finance and Islamic financial inclusion is an important step to solve this problem. The purpose of this study was to determine the performance of micro, small and medium enterprises (MSMEs) in Mojogedang District in terms of Islamic financial literacy and inclusion. One hundred people were selected using purposive sampling technique to participate in the survey, making it quantitative and using associative methodology. The questionnaire served as the main data source, and multiple linear regression was used for analysis. The study findings indicate that MSME Performance in Mojogedang District is significantly influenced by the partial and simultaneous effects of Islamic financial literacy and inclusion.