ISLAMIC ETHICS AND SOCIOECONOMIC DETERMINANTS OF MSME INCOME IN ACEH TAMIANG: Capital and Education as Drivers of Equitable Growth

Abstract

Abstract
Purpose:  This study investigates the role of capital, technology, and education in shaping micro, small, and medium enterprise (MSME) income in Aceh Tamiang, Indonesia, through the lens of Maqāṣid al-Sharīʿah. It challenges conventional economic models by prioritizing Islamic principles of equitable growth and human-centric development.
Method: Primary data from 97 MSME actors were analyzed using multiple linear regression. The study integrates Islamic economic theory, emphasizing profit-sharing mechanisms and critiques of interest-based finance, while contextualizing findings within Aceh’s Sharia-based governance and socio-religious norms

Findings:  Capital (β = 0.42, p < 0.01) and education (β = 0.31, p < 0.05) significantly enhance MSME income, aligning with Islamic finance’s emphasis on asset-backed investments and ethical human capital development. Technology adoption, however, shows no statistical significance, attributed to infrastructural gaps and cultural preferences for trust-based transactions.

Limitations and Theoretical Implications:  The study’s regional focus and sample size (n=97) limit generalizability. Theoretically, it bridges Maqāṣid -driven frameworks with empirical analysis, offering new insights into how Islamic ethics can reorient development paradigms.

Practical Implications: Recommendations include expanding Sharia-compliant microfinance institutions (BMT), integrating ethical Tarbiyah value into vocational training, and designing technology policies sensitive to Aceh’s socio-religious context. These align with global debates on Islamic social finance and sustainable livelihoods.