ANALISIS LITERASI KEUANGAN SYARIAH PADA PELAKU UMKM GENERASI MILENIAL DI KOTA PACITAN

Abstract

The low level of Islamic financial literacy among millennial MSME actors has become an issue that may hinder optimal business management in accordance with Sharia principles. This study aims to analyze the level of Islamic financial literacy among millennial-generation MSME actors in Pacitan City. The research employs a descriptive quantitative approach using a survey method, in which data were collected through questionnaires distributed to respondents who are millennial MSME owners. Islamic financial literacy is measured based on four indicators: knowledge of financial management, credit management, savings and investment management, and risk management. The findings reveal that, in general, the Islamic financial literacy level of MSME actors falls into the less literate category. The credit management indicator recorded the lowest score and is classified as not literate, while the indicators of financial management knowledge, savings and investment management, and risk management are categorized as less literate. These results indicate the urgent need for interventions in the form of education, training, and assistance to improve the understanding and skills of MSME actors in managing finances in accordance with Islamic principles.