The purpose of this paper is to analyze the changes in Islamic financing literacy and draw a comparison between the intentions of Muslim and non-Muslim micro and small entrepreneurs after receiving counseling. It also observes the role of religion in the relationship between literacy and the intention to use Islamic financing.
The participants were of 60 owners of micro and small entrepreneurs who were made up of 30 Muslims and 30 non-Muslims. An Islamic financing counseling was conducted on 30 non-Muslims, and data were obtained relating to literacy and intention after the counseling. The data were analyzed using statistical descriptive, associative and comparative test.
There is a significant increase in literacy and intentions of non-Muslim entrepreneurs after receiving the counseling. It is also discovered that religious factor no longer influences literacy and intention of using Islamic financing after receiving the counseling.
Counseling is an effective way to establish non-Muslims’ literacy and lead their intention toward the use of Islamic financing products.
There is a need to give proper knowledge about the importance of Islamic financing to non-Muslims by emphasizing the monetary values and benefits to diversify the market segment.
The finding proves that Islam, in every aspect including the economy, is a blessing to the entire universe or as Muslim says, ‘rahmatan lil “alamin”.
Previous studies about Islamic financing have been mostly conducted by using survey among the Muslim population. Therefore, this study combines both survey and experiment by providing Islamic literacy counseling to non-Muslims.
