Bukhori: Kajian Ekonomi dan Keuangan Islam
Vol 6 No 1 (2026): Juli

The Effect of Sharia Financing on Financial Performance of Culinary MSMEs Sultan Alauddin Street Makassar

Riski Amalia (Universitas Muhammadiyah Makassar, Indonesia)
Wa Ode Rayyani (Universitas Muhammadiyah Makassar, Indonesia)



Article Info

Publish Date
14 Jul 2026

Abstract

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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Journal Info

Abbrev

Bukhori

Publisher

Subject

Decision Sciences, Operations Research & Management Economics, Econometrics & Finance

Description

Bukhori: Kajian Ekonomi dan Keuangan Islam aims to be a useful platform for spreading scientific studies on various issues and a strategic tool for developing theories and practices in the fields of Islamic Economy and Finance.The scopes of the journal include, but are not limited to, the following ...