Strengthening Coastal MSME Capacity of Lake Tempe through Islamic Management Approach for Economic Independence

Abstract

This research examines the implementation of Islamic management principles in strengthening the capacity of Micro, Small, and Medium Enterprises (MSMEs) in the coastal areas of Lake Tempe, South Sulawesi, Indonesia. The study employs a mixed-method approach combining quantitative surveys and qualitative interviews with 150 MSME owners to evaluate the effectiveness of Islamic management practices in enhancing economic independence. The findings reveal that Islamic management principles, including ethical business practices, profit-sharing mechanisms, and community-based financial systems, significantly improve MSME performance by 45.4% in revenue growth and 60% in profit margins over a 12-month period. The research contributes to understanding how traditional Islamic values can be integrated with modern business management to foster sustainable economic development in coastal communities. The implementation of Islamic management approaches demonstrates substantial improvements in financial literacy, business sustainability, and community economic resilience, providing a viable framework for MSME development in similar contexts.