Purpose: This study analyzes the effect of sharia-compliant financing on the financial performance of culinary Micro, Small, and Medium Enterprises (MSMEs) along Jalan Sultan Alauddin in Makassar. Sharia financing is treated here as an alternative source of capital, grounded in principles of fairness and free of interest, that is expected to improve the operating performance of MSMEs. Methodology: The study takes a quantitative approach using a survey method. Respondents were selected through purposive sampling, yielding 30 culinary MSME operators who had already obtained sharia financing. Data were collected through questionnaires, a review of the literature, and field observation, and were analyzed using simple linear regression in IBM SPSS Statistics version 25.Results: The results show that sharia financing has a positive and significant effect on the financial performance of culinary MSMEs in the study area, reflected in higher turnover, higher profit, and stronger business development after financing was obtained. Conclusions: Sharia financing contributes to improving MSME financial performance, so that better access to sharia financing tends to go hand in hand with stronger business performance.Limitations: The study is confined to culinary MSMEs along Jalan Sultan Alauddin in Makassar, so its findings cannot be generalized broadly.Contribution: The study contributes to the literature on sharia financing and offers a reference point for sharia financial institutions and MSME operators seeking to strengthen business performance.
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