Analysis of Sharia Financial Literacy and Simple Financial Management Practices Among MSME Operators in Rappocini Subdistrict

Abstract

This study aims to analyze Islamic financial literacy and basic financial management practices among MSME operators in Rappocini District, Makassar City. The study employs a descriptive qualitative approach, with data collected through face-to-face interviews and documentation. The research informants consist of five MSME operators in the food and beverage sector, specifically vendors of coconut ice, meatballs, batagor, beverages, and steamed buns. The study focused on MSME operators’ understanding of Islamic financial institutions, recording of income and expenses, budgeting for purchases, determining product cost of goods sold, setting profit margins, and the habit of setting aside business income. The results indicate that the level of Islamic financial literacy among MSME operators remains low. Most informants do not yet understand the substantive differences between Islamic banks and conventional banks. They tend to associate Islamic banks with Hajj and Umrah services, rather than with the principles of contracts, profit-sharing, or Sharia-compliant transactions. In terms of financial management, some informants have been recording their income and expenses, but they still use manual, simple methods that lack consistency. The determination of a product’s cost of goods sold generally considers only the cost of primary materials, while operating costs have not been calculated in detail. Profit margins are mostly set based on experience, market conditions, and consumer purchasing power. Some informants have set aside income, but it has not been entirely separated from their personal finances. This study underscores the need for practical Islamic finance education and guidance for MSME operators.