DEVELOPMENT OF SMES IN AN ISLAMIC-BASED ECONOMY

Risa Fadhila Cahya; Tata Ramadhani; Azhara Rizaltul Ramadhana; Hafizhul Bahri Al-Ghifar; Putri Para Diva

doi:10.5281/zenodo.21991679

Authors

Risa Fadhila Cahya UIN Sjech M. Djamil Djambek Bukittinggi Author
Tata Ramadhani Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi Author
Azhara Rizaltul Ramadhana Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi Author
Hafizhul Bahri Al-Ghifar Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi Author
Putri Para Diva Universitas Islam Negeri Sjech M. Djamil Djambek Bukittinggi Author

DOI:

https://doi.org/10.5281/zenodo.21991679

Keywords:

Development of SMEs, Islamic-Based Economy, Small and Medium Enterprises (SMEs), Sharia Principles

Abstract

This article discusses the role and strategies for the development of Small and Medium Enterprises (SMEs) within the context of an Islamic-based economy. With the rapidly growing economy and the increasing complexity of global challenges, the development of SMEs is crucial in creating economic sustainability that adheres to Sharia principles. This research examines key aspects of SME development in an Islamic context, including access to capital, risk management, Sharia-compliant marketing, and cross-sector collaboration. Through a qualitative and quantitative approach, this article outlines practical steps to enhance the role of SMEs in an Islamic-based economy. In-depth analyses of inhibiting and supporting factors are identified to provide better insights into SME development. Furthermore, the article proposes policy strategies that can be implemented by governments and relevant stakeholders to strengthen the SME ecosystem in compliance with Islamic economic principles. The research outcomes are expected to make a significant contribution to exploring the economic potential of SMEs while maintaining moral values and ethics in Islam. The conclusions drawn from this article can serve as a foundation for policymakers, business practitioners, and academics to guide sustainable, competitive, and ethical SME development within the context of an Islamic-based economy.

References

Abdullah, A., & Sulaiman, S. (2017). "Islamic Marketing Strategies for SMEs: A Case Study of Malaysia." Journal of Small Business and Entrepreneurship Development, 5(1), 34-48.

Abdullah, M. A. (2018). "Peran Lembaga Keuangan Syariah dalam Mendukung Pengembangan UKM." Jurnal Ekonomi Syariah, 6(2), 123-140.

Ali, F., & Mahmood, Z. (2017). "Islamic Finance and Its Impact on SMEs: Evidence from the United Arab Emirates." International Journal of Islamic and Middle Eastern Finance and Management, 10(4), 515-530.

Ali, S., & Khan, N. (2020). "Challenges and Opportunities for Islamic Small and Medium Enterprises (ISMEs): A Case Study of Indonesia." International Journal of Islamic Economics and Finance Studies, 6(2), 45-62.

Hamid, A. R. A., & Omar, N. (2020). "Education and Capacity Building for Sharia-Compliant SMEs Owners." Journal of Islamic Economics and Banking, 8(3), 234-250.

Hasan, M. (2019). "Islamic Microfinance and Its Role in Fostering Small and Medium Enterprises (SMEs) in Islamic Economics." Journal of Islamic Economics and Finance, 5(2), 112-128.

Hidayat, A. (2019). "Manajemen Risiko Syariah pada UKM: Sebuah Analisis Komprehensif." Jurnal Ekonomi dan Bisnis Islam, 7(1), 45-60.

Hossain, M. S., & Islam, M. A. (2018). "Islamic Entrepreneurship and Marketing: A Framework for SMEs." International Journal of Entrepreneurship, 22(3), 187-205.

Khalid, A., & Haron, H. (2019). "Islamic Microfinance and Its Role in Empowering Small Businesses: A Case Study of Pakistan." Journal of Economic Development, Management, IT, Finance and Marketing, 11(1), 45-58.

Kholis, N. (2020). "Pemasaran Syariah: Strategi Meningkatkan Daya Saing UKM." Jurnal Bisnis dan Manajemen Islam, 8(3), 201-218.

Lubis, A. B. (2017). "Kolaborasi Lintas Sektor dalam Pengembangan UKM Syariah." Jurnal Manajemen Ekonomi dan Keuangan Islam, 5(1), 78-92.

Mustafa, A., & Yusuf, S. (2016). "Role of Sharia-Compliant Financing in Enhancing Access to Capital for SMEs." Journal of Islamic Banking and Finance, 4(3), 56-72.

Mustofa, A. (2016). "Pendekatan Inklusif untuk Akses Modal UKM Syariah." Jurnal Ekonomi Islam, 4(2), 156-172.

Nasution, R. F. (2019). "Pendidikan dan Pengembangan Kapasitas Pemilik UKM Syariah." Jurnal Pendidikan Ekonomi dan Bisnis Islam, 7(2), 89-105.

Pradana, B. A. (2018). "Dampak Pemasaran Syariah terhadap Keunggulan Kompetitif UKM." Jurnal Manajemen Pemasaran Islam, 6(3), 213-230.

Rahayu, D. (2021). "Kebijakan Pemerintah dalam Mendukung UKM Syariah: Sebuah Evaluasi." Jurnal Kebijakan Ekonomi dan Keuangan Islam, 9(1), 45-62.

Rahman, A., & Ahmed, H. (2018). "Risk Management in Islamic Small and Medium Enterprises: A Comprehensive Review." Journal of Islamic Accounting and Business Research, 9(2), 278-293.

Sari, R. A. (2017). "Pentingnya Literasi Ekonomi Islam bagi Pemilik UKM." Jurnal Ekonomi Islam dan Keuangan, 5(2), 134-150.

Siregar, H., & Rosyidi, C. N. (2021). "Collaboration in Islamic SMEs Development: A Cross-Sectoral Perspective." Journal of Islamic Business and Management, 9(1), 89-104.

Suparman, A. (2018). "Pengembangan Infrastruktur Dukungan bagi UKM Syariah." Jurnal Inovasi Bisnis dan Kewirausahaan, 6(1), 34-50.