This study aims to analyze the implementation of sharia contracts in business transactions of Micro, Small and Medium Enterprises (MSMEs) at the village level and their impact on business sustainability from the perspective of Islamic economic law. The focus of the case study on several MSMEs in rural areas shows that although there is awareness of sharia principles, the understanding and application of sharia contracts such as murabahah, musyarakah, and mudharabah still vary. Qualitative research methods with a case study approach and in-depth interviews were used to collect data from MSME players, Islamic financial institutions, and community leaders. The results indicate that proper implementation of sharia contracts can increase trust, fairness, and transparency in business transactions, which in turn contribute to the sustainability of MSME businesses. However, challenges such as limited access to information, lack of education, and uneven understanding of Islamic economic law remain. This study concludes that strengthening Islamic financial literacy and sustainable mentoring are crucial to optimize the role of Islamic contracts in supporting a resilient and sustainable village economy.
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