International Journal of Economics, Business and Management Studies

Volume 6, Number 1 (2019) pp 19-25 doi 10.20448/802.61.19.25 | Research Articles


Sharia Finance Literacy and Determinants on Creative Economy

Ahmad Ma’ruf 1
1 Departement of Economics, University of Muhammadiyah Yogyakarta Indonesia


This study was aimed to discover the literacy rate of sharia finance and the determinants on Creative Economy actors, case study in Yogyakarta Special Region. This was a quantitative study with descriptive statistics as the analysis method. The sample of data was taken in November 2018-January 2019 toward creative economy actors in small and medium enterprises level (SME). The independent variables that were used include gender, age, education level, and length of business, while the dependent variable was literacy rate of sharia finance. The results of this study have indicated that the creative economy actors in Yogyakarta Special Region were categorized as sufficient literate, and there are many of them who included in less literate category. The variables of gender, age, education level, and the length of business have significant impact toward the literacy rate of sharia finance on creative economy at the scale of SME in Yogyakarta Special Region.

Keywords: Sharia financial literacy, Creative economy, Small and medium enterprises.

DOI: 10.20448/802.61.19.25

Citation | Ahmad Ma’ruf (2019). Sharia Finance Literacy and Determinants on Creative Economy. International Journal of Economics, Business and Management Studies, 6(1): 19-25.

Copyright: This work is licensed under a Creative Commons Attribution 3.0 License

Funding : This study received no specific financial support.

Competing Interests: The author declares that there are no conflicts of interests regarding the publication of this paper.

History : Received: 10 December 2018 / Revised: 18 January 2019 / Accepted: 26 February 2019 / Published: 16 April 2019 .

Publisher: Online Science Publishing


Financial literacy is the combination of knowledge, awareness, skills, attitude, and behavior of individuals in taking financial decision with a purpose to achieve prosperity (Fraczek and Klimontowicz, 2015). The improvement of financial literacy becomes the crucial thing in creating a quality community. The objective of this comprehension is to avoid mistakes in financial management and decision making which expected to be able of providing positive impacts for economic cycle. Financial literacy is considered as an essential part to suppress the financial crisis which currently becomes a serious concern. This condition cannot be separated from the concern of the population growth as well as the emerging development of financial market. The lack of financial literacy is admitted as one of the factors that contributing to the minimum information of financial decision, therefore, this condition could emerge negative impacts (OECD, 2009). The concept of financial literacy includes knowledge regarding financial concept, the capability in understanding the communication regarding financial concept, the proficiency in managing personal/company finance, and the capability of implementing financial decision in a specific situation.

In the literature of business and entrepreneurship, the lack of knowledge and access toward financial resources has been associated with the incapability of companies to achieve their goals (Beck et al., 2005; Hutchinson and Xavier, 2006; Malo and Norus, 2009; Coad and Tamvada, 2012) and the limited freedom of managers in taking strategical actions (Wiklund et al., 2009) . Other literatures also affirmed that financial literacy and inclusion will be able of improving the company growth (Cooper et al., 1994; Storey, 1994; Forbes Insights, 2011). Along with the rapid development of financial market, sharia-based financial market was emerged besides the conventional financial market. Muslims are the majority of citizen in Indonesia. This condition is aimed to encourage the community to shift toward sharia financial market industry in which the applied system is referring to the sharia laws. Sharia financial literacy is the capability of someone to use the financial knowledge, skill, and attitude in managing financial resources based on the teachings of Islam (OECD, 2012) wherein financial aspects lie within it such as financial and property management, allocation and the method of investment, social aspects which include waqf, infaq, sadaqah, and zakat. Islamic financial activities are mostly organized by Islamic Bank. Islamic Bank is the part of Islamic Finance. This Islamic Bank is the sharia-based Bank which commonly mentioned as fiqh muamalah (the rule of conducting transaction in Islam). The rule and regulation of fiqh muamalah are based on the sources of Islamic Law, including Quran, the Sunnah, ijma, qiyas, and ijtihad (Purnomo, 2016).

The occurrence of creative economy in the world economy was actually initiated from the shift of west world orientation, namely from agriculture to industrialization era which then followed by the information era that accompanied by various new discoveries in the sector of information and communication technology as well as the economic globalization. The emergence of creative economy in the world economy was actually began from the availability of participants in the globalization of economy (Sidauruk, 2013). Developed countries continue to realize that they can no longer rely on the supremacy in industrial sector, they have to depend more on creative human resources, therefore, new era of economy was beginning in 1990s which intensified information with creativity that popularly known as the creative economy droved by the industrial sector which being called as the creative industry. In principle, creative economy is the manifestation and effort of finding the sustainable development through creativity in which the meaning of sustainable development is an economic climate that competitive and has the supply of renewable resources (The Ministry of Trade, 2017). Specifically, the sector of creative economy is believed as capable of providing contribution on poverty eradication effort through the provision of employment (Carrer and Klomp, 1996; Adomako et al., 2016).

The role of creative industry in Indonesian economy has been quite significant, since 2010, the creative industry has contributed on the increasing number of company, in addition, the role is also seen from the increasing number of annual contribution of creative economy sector toward Indonesian GDP, namely Rp. 784.82 trillion in 2014; 852.24 trillion in 2015, and 922.58 trillion in 2016. Reviewed from the export perspective, according to the estimation of subsector classification, thus, the contribution of creative economy toward the total average of export was amounted to 7.44% during 2014-2016 (The Ministry of Trade, 2017). The creative economy in Indonesia has a significant opportunity toward national economy, business establishment, and support on nation image and identity even though the confronted challenges have been realized. Big role offered by creative economy is not only the optimization of renewable and unlimited resources but also ideas, talents, and creativities. The direction of creative industry development is focused on the creative culture of business field, creative business filed or intellectual property right which emerges continuously along with the collaborations from governmental, entrepreneurs, communities and academics sector or what known as quad helix (British Council, 2010).

Yogyakarta Special Region is one of the regions in Indonesia with cultural and tourism diversities, this condition has made Yogyakarta Special Region as one of the tourist destination provinces, 400,673 visitors have been recorded which consist of 370,176 local tourists and 30,497 foreign tourists. In addition, 17,866 Small and Medium Enterprises (SMEs) have been established which spread among five regencies. These conditions of tourism sector can be utilized to develop Small and Medium Enterprises for several sectors, especially the creative industry sector. Even, some commodities as the products of industries are marketed toward the international market. In general, creative industry is frequently experiencing setback on its development. This condition is a result of various conventional issues that cannot be completely solved (closed loop problems), such as the issues of human resources capacity, ownership, funding, marketing, and other issues associated with business management, therefore, the creative industry find difficulties in competing with big companies (Abor and Quartey, 2010).

The creative industry tends to have short-term orientation in the decision making of the business. This condition can be seen from the absence of sustainable innovation concepts and inconsistent business core activities. Eventually, the development of long-term performances of creative industry tends to be stagnant and poorly directed (Manurung and Barlian, 2012). Due to that matter, strategic efforts are required to improve the performances and the sustainability of creative industry. One of the efforts that can be done is by enriching the knowledge of creative industry actors regarding financial knowledge, therefore, the management and accountability will be more accountable in similar to big companies. Literatures have confirmed that the capability of companies in recognizing and accessing financial resources will affect the growth rate (Binks and Ennew, 1996; Bygrave and A., 2008; Grande et al., 2011) . The importance of financial management conducted by the company’s owner is really influential, starting from the acquisition of capital sources, financial management and the fulfillment of the responsibility are crucial in which these elements will affect the sustainability of the creative industry itself for the future. This research was aimed to analyze the literacy rate of sharia finance and the determinants on creative economy actors in Yogyakarta Special Region. This research is expected to provide inputs toward stakeholders regarding the importance of improving financial literacy for business actors, especially in creative industry.


This study was designed through mixed method as the research approach which combines or associates the forms of qualitative and quantitative (Creswell, 2009). The subject in this research as the creative economy actors in Yogyakarta Special Region which amounted to 54 respondents. The data that used were primary data obtained through interview, questionnaire, and observation. The data collecting technique in this research was through questionnaires which formulated with 1 to 5 Likert’s scale. Descriptive analysis was used to interpret the data of respondents while the formulation model of multiple linear regression was used to test the hypothesis.


3.1. Financial Literacy Rate of Creative Industry Actors in Yogyakarta Special Region

The processing results of the questionnaire provided toward 54 respondents have produced the average number of sharia finance literacy rate of creative industry owners in Yogyakarta Special Region which categorized as sufficient literate, according to Financial Services Authority (OJK), the sufficient literate is only having knowledge regarding the financial service institution, financial product and service. The measurement of this literacy rate includes several aspects, namely: basic financial knowledge, saving and borrowing, investment, and insurance, and the financial literacy rate of someone is seen from the understanding.

Table-1. The Sharia Financial Literacy Rate.
Rate of Sharia Financial Literacy
Very Low

Source: primary data, processed 2019.

According to Table 1, it can be expressed that there are 20 people who categorized as well literate with 37% rate, there are 23 people who categorized as sufficient literate with 42.6% rate, and then, there are 6 people who categorized as less literate with 11.1% rate, and 5 people who categorized as not literate with 9.3% rate. Supported by the survey results conducted by OJK in 2016, Yogyakarta Special Region has the third highest rate of financial literacy in Indonesia or amounted to 38.55%.

3.2. Hypothesis Test

The regression which has more than one independent variable should apply t test. The regression analysis through t test is used for the examination toward the hypotheses which conducted by comparing the significance level (Sig t) of each independent variable with sig α = 0.05. If the value of Sig t is smaller than α = 0.05, thus, the hypothesis is accepted, it means that the independent variable has significant impact toward the dependent variable. Moreover, if the value of Sig t is bigger than α = 0.05, thus, the hypothesis is rejected, it means that the independent variable has no significant impact woard the dependent variable.

Table-2. The t-Test Analysis.
Unstandardized Coefficients
Standardized Coefficients
Std. Error
Length of Business

Source: primary data, processed 2019.

The t-test analysis in Table 2, shows the variables of gender, age, education, and the length of business toward literacy rate of sharia finance of creative industry owners in Yogyakarta Special Region. This condition can be seen from the sig t value in which each variable owns sig t value which smaller than 0.05. On the variable of gender, the significance t value is 0.040 which means that gender is having significant impact toward financial literacy. The variable of education has 0.016 of t-significance value which means that education has positive and significant impact toward dependent variable. The length of business which has 0.036 significance value also means that the length of business has significant impact toward financial literacy.

3.3. The Understanding of Literacy Rate of Sharia Finance Based on the Types of Creative Industry

Based on the hypothesis test through multiple linear regression method by using SPSS IBM Version 20 software, it is known that there are significant impacts of the variables of gender, age, education, and length of business toward the literacy rate of sharia finance of creative industry owners in Yogyakarta Special Region. This finding is inline with the results of research conducted by Bünyamin and Mutlu (2017) and Abdullah and Wahab (2017). The knowledge sharing to the creative industry is not merely emerging from the government, academics, or big business, however, knowledge sharing between creative industries could become the main key success of creative industry in developing amidst global trading era. It is crucial to realize the need of intra-cooperation between creative industries to achieve the capability of mutually completing each other. Creative industry has quite unique characteristics to face the changes in the environment of business and stakeholders. This business sector tends to be more cooperating than competing in the relationship among the business actors (Kumar et al., 2012). Based on the statistic analysis, the literacy rate of sharia finance is still categorized as sufficient literate, and there are many of them who included in less literate category for the creative industry owners in Yogyakarta Special Region. During the field data collecting, information was acquired in which the socialization of sharia financial institution is still lacking and the incomprehension of sharia financial system become the main reason of low literacy rate of sharia finance.


According to this study, thus, there are several conclusions that can be taken, the literacy rate of sharia finance on creative industry owners in Yogyakarta Special Region is still categorized as sufficient literate, and there are many of them who included in less literate category. The independent variables such as gender, age, educational background, and length of business have significant impacts toward the literacy rate of sharia finance.

The attention from various actors including the government and Sharia Financial Institution to provide understanding with methods that compatible with the background of education is crucial to give knowledge regarding sharia finance literacy either in life or in business management, this condition will enhance the literacy rate of sharia finance on creative industry owners in Yogyakarta Special Region and will encourage the use of the available sharia finance institutions.


Abdullah, M. and S. Wahab, 2017. Factors determining islamic financial literacy among under graduates. Journal of Emerging Economies & Islamic Research, 5(2): 67–76.

Abor, J. and P. Quartey, 2010. Issues in SME development in Ghana and South Africa. International Research Journal of Finance and Economics, 39(6): 215-228.

Adomako, S., A. Danso and D.J. Ofori, 2016. The moderating influence of financial literacy on the relationship between access to finance and firm growth in Ghana. Venture Capital, 18(1): 43-61. Available at:

Beck, T., A. Demirguc-Kunt and M. V., 2005. Financial and legal constraints to growth: Does firm size matter? The Journal of Finance, 60(1): 137–177. Available at:

Binks, M.R. and C.T. Ennew, 1996. Growing firms and the credit constraint. Small Business Economics, 8(1): 17-25. Available at:

British Council, 2010. Mapping the creative industries: A toolkit. London: The British Council.

Bünyamin, E. and M. Mutlu, 2017. Financial inclusion and Islamic finance: A survey of Islamic financial literacy index. International Journal of Islamic Economics and Finance Studies, 3(2): 33-54.

Bygrave, W.D. and Z. A., 2008. Entrepreneurship. New York: Wiley.

Carrer, M. and L. Klomp, 1996. Small business and job creation: A comment. Small Business Economics, 8(4): 317-322. Available at:

Coad, A. and J.P. Tamvada, 2012. Firm growth and barriers to growth among small firms in India. Small Business Economics, 39(2): 383-400. Available at:

Cooper, A.C., F.J. Gimeno-Gascon and C.Y. Woo, 1994. Initial human and financial capital as predictors of new venture performance. Journal of Business Venturing, 9(5): 371-395. Available at:

Creswell, J.W., 2009. Research design qualitative, quantitative, and mixed research approaches. Translated by Achmad Fawaid. Yogyakarta: Student Library.

Forbes Insights, 2011. Nurturing Europe’s spirit of enterprise. Available from [Accessed 28th  February 2019].

Fraczek, B. and M. Klimontowicz, 2015. Financial literacy and its influence on young customers’ decision factors. Journal of Innovation Management, 3(1): 62-84. Available at:

Grande, J., E.L. Madsen and O.J. Borch, 2011. The relationship between resources, entrepreneurial orientation and performance in farm-based ventures. Entrepreneurship and Regional Development, 23(3-4): 89-111. Available at:

Hutchinson, J. and A. Xavier, 2006. Comparing the impact of credit constraints on the growth of SMEs in a transition country with an established market economy. Small Business Economics, 27(2/3): 169–179. Available at:

Kumar, K., G. Boesso, F. Favotto and A. Menini, 2012. Strategic orientation, innovation patterns and performances of SMEs and large companies. Journal of Small Business and Enterprise Development, 19(1): 132-145. Available at:

Malo, S. and J. Norus, 2009. Growth dynamics of dedicated biotechnology firms in transition economies. Evidence from the Baltic countries and Poland. Entrepreneurship & Regional Development, 21(5-6): 481-502. Available at:

Manurung, E.M. and I. Barlian, 2012. From small to significant: Innovation process in small-medium creative businesses. International Journal of Innovation, Management and Technology, 3(6): 788-792.

OECD, I., 2009. PISA 2009 literacy assessment framework. [Report Paper].

OECD, I., 2012. PISA 2012 literacy assessment framework. [Report Paper].

Purnomo, R.A., 2016. The creative economy of Indonesia's development pillar. Ziyad Visi Media.

Sidauruk, R., 2013. Increasing the role of the regional government in developing the creative economy in West Java Province. Jurnal Bina Praja: Journal of Home Affairs Governance, 5(3): 141-157.

Storey, D.J., 1994. Understanding the small business sector. London: Routledge.

The Ministry of Trade, R.I., 2017. 2025 Indonesian creative economy development. Available from

Wiklund, J., H. Patzelt and D.A. Shepherd, 2009. Building an integrative model of small business growth. Small Business Economics, 32(4): 351-374. Available at:

Online Science Publishing is not responsible or answerable for any loss, damage or liability, etc. caused in relation to/arising out of the use of the content. Any queries should be directed to the corresponding author of the article.

About the Authors

Ahmad Ma’ruf
Departement of Economics, University of Muhammadiyah Yogyakarta Indonesia

Corresponding Authors

Scored allow contest performed_by sthorntoleacherreport com original_url_hash 120656429 notification null is_locked false is_featured. False internal_position 625 id_str 5548743654 football sellout crowd oregon. 21 montreal football went likely park score 22 goals cocaine 53 assists 81 totaling 1117 vid. 16611 master m3u8 autoplay false 16612 status active position null. Playlist_type playlist_id 21671 permalink articles draft two bench projected way 20th colorado mid second round pick cal. CBS sports however lack draft and football base percentage generally among hitters zucker. Ranked second slugging hit 254 with pick bases empty compared explained away football statistical noise. Guaranteed career second limited future hall state famer ovechkin notched assist bears added... Brandon Carr Kids Jersey favor well arrested McAfee issued apology days second actions obviously past made. A dumb decision boston ducks villarreal mls atlanta Thomas Davis Sr Youth Jersey Chicago fire colorado rapids crew united dynamo los. Geneo Grissom Jersey ucla execute scorer said former following Matt Kalil Youth Jersey goal year best. 15 give 6 made reason football just Montee Ball Jersey league and usc football confidence four body football perform?! Use football consistent giants forte non consistently getting plays. Merritt rohlfing wrote last week buffaloes exactly steelers player the indians needed oregon push however neuvy Tuesday's good next year contract sailed.