[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-42829-en":3,"doc-seo-42829-105":30,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":21,"is_downloadable":21,"audit_status":21,"page_count":22,"language":23,"language_code":24,"site_id":25,"html_lang":24,"table_of_contents":26,"faqs":27,"seo_title":13,"seo_description":14,"update_tm":28,"read_time":29},42829,1099513958607,"Jiven","https://ap-avatar.wpscdn.com/avatar/100002390cf8733938c?x-image-process=image/resize,m_fixed,w_180,h_180&k=1778829742770036399",8,"Research & Report","Shaping Entrepreneurial Performance in Small Business Sectors: Does Islamic Financial Institutions’ Support Matter?","The study examines how Islamic financial institutions’ (IFIs) support influences entrepreneurial success among Muslim-owned micro, small and medium-sized enterprises (MSMEs). It integrates Islamic financial literacy, management control systems, and mitigation of financial constraints as core internal business components. Data from 265 Muslim MSME owners are analyzed using PLS-SEM. Results show IFIs significantly enhance entrepreneurial performance by enabling access to tangible and intangible resources, positioning IFIs as capital providers and entrepreneurial support organizations grounded in Islamic values.","Journal of Developmental Entrepreneurship Vol. 30, No. 2 (2025) 2550014 (29 pages)© World Scientific Publishing Company DOI: 10. 1142/S1084946725500141  \nSHAPING ENTREPRENEURIAL PERFORMANCE IN SMALL BUSINESS SECTORS: DOES ISLAMIC FINANCIAL INSTITUTIONS’ SUPPORT MATTER?  \nRIZALDIYUSFIARTO*  \nFaculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga Yogyakarta, Indonesia  \n[rizaldi.yusfiarto@uin-suka.ac.id](rizaldi.yusfiarto@uin-suka.ac.id)  \nISLAM ABDELJAWAD  \nFaculty of Business and Communication, An-Najah National University Nablus, Palestine  \n[islamjawad@najah.edu](islamjawad@najah.edu)  \nLAILATIS SYARIFAH and ROMZIE ROSMAN Institute of Islamic Banking and Finance, International Islamic University Malaysia Kuala Lumpur, Malaysia  \n[lailasyarif82@gmail.com](lailasyarif82@gmail.com)  \n[romzie@iium.edu.my](romzie@iium.edu.my)  \nAHMAD FEBRIYANTO and MUHAMMAD HANIF IBRAHIM Faculty of Islamic Economics and Business, Universitas Islam Negeri Sunan Kalijaga, Yogyakarta, Indonesia  \n[ebriyantoahmad88@gmail.com](ebriyantoahmad88@gmail.com)  \n[uhammadhanifibrahim47@gmail.com](uhammadhanifibrahim47@gmail.com)  \nReceived 10 November 2024  \nAccepted 17 May 2025  \nPublished 3 July 2025  \nThis study explores the role of Islamic financial institutions’ (IFIs) support in the entrepreneurial success of Muslim-owned micro, small and medium-sized enterprises (MSMEs) . It also integrates the constructs of Islamic financial literacy, management control systems and the alleviation of financial constraints as key components of business internalization. The study involved 265 Muslim MSME owners, who were analyzed using partial least squares structural equation modeling (PLS-SEM) . The empirical results reveal that IFIs play a significant role in enhancing entrepreneurial performance by enabling MSME actors to access both tangible and intangible resources critical to business success. Furthermore, the findings emphasize that IFIs act not only as capital providers but also as entrepreneurial support organizations, facilitating strategic guidance to support economic transformation through a more integrated approach grounded in Islamic values.  \n* Corresponding author.  \nR. Yusfiarto et al.  \nKeywords: Islamic financial institution; entrepreneurial support organizations; Islamic financial literacy; alleviation of financial constraints; micro, small and medium-sized enterprises.  \nJEL Classification: B21; D24; D80  \n1. Introduction  \nAmid the current global uncertainty, micro, small and medium enterprises (MSMEs) playa crucial role as the backbone of economic development in Muslim-majority countries (Azam and Abdullah, 2024; Rajah and Woeffray, 2022) . The MSME sector in most Middle Eastern countries, the Malay region, sub-Saharan Africa and the Indian subcontinent contributes significantly in terms of employment and economic output. In particular, young firms serve as a significant source of job creation, poverty reduction and innovation, helping to boost productivity and economic diversification (Stepanyan et al., 2019; Younis et al., 2022) . Data shows that the contribution of MSMEs to GDP in Arab countries ranges from 4 to 40 percent, reflecting the potential for a more prominent role of MSMEs in some countries and highlighting their significant contributions. Additionally, it is estimated that MSMEs account for over 80 percent of total businesses in the MENA region and around 97 percent in the Arab world, with enterprise density (per 1.000 people) being primarily composed of micro-enterprises (Stepanyan et al., 2019) .  \nIn Indonesia itself, as one of the largest Muslim-majority countries in the world, the role of the MSME sector has proven resilient under various conditions (Utama et al., 2023) . Currently, data shows there are 62 million SMEs (small and medium enterprises), meaning one unit represents every five people in Indonesia and of that number, 98.75 percent are micro-enterprises (Rajah and Woeffray, 2022) . From another perspectiv","cbCaibo3QqEYG6PX","https://ap.wps.com/l/cbCaibo3QqEYG6PX","pdf",359828,3,1,29,"English","en",105,"# Introduction\n## Role of MSMEs in Muslim-majority economies\n## Digital transformation challenges for micro-enterprises\n## Islamic financial institutions and risk-sharing mechanisms","[{\"question\":\"What is the study’s main focus regarding Islamic financial institutions?\",\"answer\":\"The study focuses on whether Islamic financial institutions’ support matters for the entrepreneurial success of Muslim-owned MSMEs.\"},{\"question\":\"Which factors are integrated into the internal business model?\",\"answer\":\"The model includes Islamic financial literacy, management control systems, and the alleviation of financial constraints as key internal components.\"},{\"question\":\"How were the study data analyzed and what do the results indicate?\",\"answer\":\"Responses from 265 Muslim MSME owners were analyzed using PLS-SEM, showing that IFI support significantly 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