Implementation of Islamic Financial Management in Microenterprise Management: A Descriptive Qualitative Study

Abstract

Micro, Small, and Medium Enterprises (UMKM) constitute an important component of community economic activities. Although micro-enterprises operate on a relatively small scale, financial management remains an essential factor in determining business sustainability and growth. Common problems faced by micro-enterprise owners include inadequate financial record-keeping, the mixing of business and personal finances, limited access to capital, and a low level of understanding of Islamic financial principles. From an Islamic perspective, economic activities should not be solely profit-oriented but must also consider the aspects of permissibility (halal), justice, honesty, trustworthiness, and blessings (barokah). This study aims to analyze the implementation of Islamic financial management in micro-enterprises and to identify Islamic principles that can be applied to business financial management. This study employs a descriptive-analytical qualitative method, using a literature review as the primary data source. Data were obtained from scientific journals, books, regulations, publications issued by the Financial Services Authority (Otoritas Jasa Keuangan/OJK), and fatwas issued by the National Sharia Council of the Indonesian (Dewan Syariah Nasional–Majelis Ulama Indonesia/DSN-MUI). The data analysis technique involved the collection, selection, interpretation, and analysis of relevant literature sources. The findings indicate that the implementation of Islamic financial management in micro-enterprises can be carried out through financial planning, recording income and expenses, separating business and personal finances, managing capital in accordance with halal principles, determining fair prices, managing profits, and avoiding riba (usury/interest), gharar (excessive uncertainty), maysir (gambling), fraud, and business practices that cause harm. The application of these principles can help micro-enterprise owners improve financial management discipline, maintain business sustainability, and conduct economic activities in accordance with Islamic values.