What does this research mean for the field?

While Indonesian MSME entrepreneurs hold positive perceptions of Islamic financing driven by ethical and religious values, widespread adoption is significantly hindered by limited access, complex procedures, and a lack of understanding. Novelty: ClaimNovelty.INCREMENTAL. Consensus alignment: ConsensusAlignment.NEUTRAL.

What question did this study set out to answer?

To measure entrepreneurs' perceptions of Islamic financing, identify the determinants influencing those views, and evaluate key barriers hindering adoption.

August 29, 2026Discover SustainabilityOpen Access

Perceptions determinants and adoption barriers of Islamic financing among MSMEs entrepreneurs in Indonesia using an explanatory sequential mixed methods design

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Authors

FFaiziUniversitas Pembangunan Nasional Veteran Jakarta AKAirlangga Surya KusumaUniversitas Pembangunan Nasional Veteran Jakarta PWPurwanto WidodoUniversitas Pembangunan Nasional Veteran Jakarta

Discussion

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Implication

Mixed-methods study reveals high ethical appeal alongside procedural and access barriers to Islamic financing in enterprise owners, highlighting the need for streamlined banking services.

Key Points

To measure entrepreneurs' perceptions of Islamic financing, identify the determinants influencing those views, and evaluate key barriers hindering adoption.
Employed an explanatory sequential mixed-methods design targeting micro, small, and medium-sized enterprise proprietors and managers in Indonesia.
Administered quantitative surveys to a primary sample of N=176 participants.
Conducted follow-up qualitative interviews with a nested sub-sample of N=7 participants to contextualize quantitative trends.
Entrepreneurs reported positive perceptions of Islamic financing driven by ethical values, religious alignment, transparency, sustainability, and mentoring support.
Adoption was predominantly constrained by limited institutional presence in rural areas and overly complex application procedures.
Widespread deficits in financial literacy regarding Shariah-compliant mechanisms fostered frequent misconceptions regarding costs and contract structures.

Cite This Study

Faizi et al. (2026) studied this question.

synapsesocial.com/papers/6a9299bb8e5d7d1fc0c11ce5 https://doi.org/10.1007/s43621-026-04387-z

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Implication

Mixed-methods study reveals high ethical appeal alongside procedural and access barriers to Islamic financing in enterprise owners, highlighting the need for streamlined banking services.

Perceptions determinants and adoption barriers of Islamic financing among MSMEs entrepreneurs in Indonesia using an explanatory sequential mixed methods design

Discussion

Member takes

Implication

Key Points

Cite This Study

Perceptions determinants and adoption barriers of Islamic financing among MSMEs entrepreneurs in Indonesia using an explanatory sequential mixed methods design

Discussion

Member takes

Implication

Key Points

Cite This Study

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