Financial Resilience among Muslim Women Entrepreneur in Underdeveloped Area: Does Islamic Financial Literacy Work? Elfira Maya Adiba- Ambariyanto
University of Trunojoyo Madura
Abstract
The necessity of maintaining an emergency fund to preserve financial resilience was made clear by the Covid-10 pandemic. Women can play a significant role in business management, even if men now oversee MSMEs. Resilient finances are a sign of a healthy firm. The purpose of this study is to ascertain how Islamic financial literacy affects the financial resilience of MSMEs situated in locations where the majority of the population is impoverished. Purposive sampling methods were used to distribute questionnaires and collect primary data. Partial least squares is the data analysis method employed since it examines whether financial planning, a moderating variable, is present. According to the study^s findings, financial resilience is significantly predicted by Islamic financial literacy. Financial planning, which improves the correlation between the two variables, also supports this. This study has practical consequences for the necessity of early financial education since poverty-stricken populations will impede regional development- therefore, even in underdeveloped area, everyone needs to be able to manage their finances
Keywords: Financial Planning, Financial Resilience, Islamic Financial Literacy, Underdeveloped Area
Topic: Economic Welfare in Terms of Islamic Perspective
