Empowering Women-Led Micro-Enterprises: The Strategic Role of Sharia-Based Risk Literacy

Abstract

Sharia-based risk management extends beyond conventional risk management by emphasizing alignment with Islamic principles and ethical values. This approach involves identifying, evaluating, and mitigating risks while ensuring compliance with sharia law. This study aims to examine the impact of integrating these principles into micro-enterprise management, involving at least 40 women entrepreneurs in the city of Semarang. The research adopts a qualitative approach, with data collected through observations and in-depth interviews. The population consists of women-owned juice businesses in Semarang, with sampling conducted using an area sampling technique. The findings reveal at least five key risks faced by these enterprises. The results indicate that sharia-based risk literacy plays a significant role in empowering women-led micro-enterprises. A strong understanding of sharia principles emerges as a crucial factor in enhancing business success and resilience. With adequate risk literacy, women micro-entrepreneurs are better equipped to manage risks effectively, make more informed decisions, and develop their businesses in a sustainable manner while adhering to sharia principles.